"Asset management" is a term used since the 1980's that basically means the ability to plan, acquire, manage, and recycle assets in a systematic manner. Each stage of asset management has a significant impact on portfolio return and profitability. The asset management function should be employed throughout an asset's entire life cycle from the delivery of equipment to its installation, use, maintenance, and finally de-installation and disposition. Most companies do not employ a formal asset management program. However, lessors have noted a growing trend among senior managers of companies that acquire large amounts of equipment to seek methods that will reduce their need for additional capital, as well as improve productivity from the current mix of assets.
Over the next five years, asset management programs are expected to become standard in medium- to large-sized organizations, and leasing companies are being called upon to provide asset management expertise to companies seeking help with their programs internally.