CIT's 25th Annual Construction Industry Forecast Shows East South Central Region With Lower Optimism Quotient Than National Average.

Business Editors

LIVINGSTON, NJ--(BUISNESS WIRE)--Nov. 14, 2000

Decline in U.S. Construction

Market Activity Predicted for 2001

In the 25 years that CIT Equipment Financing has been forecasting the nation's construction activity, not all the news has been positive, and 2001, according to this commercial finance leader, will be no different. CIT Equipment Financing officials today released the Company's 25th annual Construction Industry Forecast which reports Optimism Quotients (OQs) for nine regions throughout the United States, as well as a national Optimism Quotient. For the second year in a row, the East South Central Region dropped 15 points. The region's 2001 OQ came in at 87 -- its lowest rating in at least five years -- ranking the region six points behind the national OQ of 93. The East South Central region, as defined by CIT Equipment Financing, includes Alabama, Kentucky, Mississippi and Tennessee.

"An OQ index below 100 indicates a likelihood that construction activity will decline," explained Ron Riecks, Senior Vice President - Sales, CIT Equipment Financing. "The results of our study have shown this trend nationwide, and in particular, in the East South Central region of the country," he continued. "In the past few years, the construction industry has seen tremendous growth, reaching historically high levels that would be difficult to maintain long-term."

The Construction Industry Forecast annually predicts construction trends on both national and regional levels based on telephone interviews with more than 900 contractors and distributors throughout the United States.

The most positive outlook for the East South Central region shows area respondents more likely to enter cyberspace, using their websites for a series of industry-related activities.

"Of those East South Central contractors who have websites, a remarkable 77 percent list job postings online," said Riecks. "This significantly surpasses the national norm of 35 percent." A solid 72% of regional distributors sell used equipment via the internet, outpacing other regions at 58%; while 48% use their sites to rent used equipment, versus the national average of 42%.

East South Central survey participants mirrored the concerns of construction professionals across the country, indicating that the most serious problem facing the industry is the lack of a quality workforce. Since 1998, contractors and distributors have expressed a concern that the competitive job market has caused the industry to accept workers who do not always have the training and skills necessary to get the job done.

"On a positive note, however, even in an environment of slowed activity, qualified construction professionals are gainfully employed," said Riecks. "They have the continued opportunity to market themselves in any number of the industry's segments that are seeking such experienced personnel."

For the past 25 years, CIT's Construction Industry Forecast has been a reliable and respected barometer of what is in store for the construction industry in the coming year. CIT Equipment Financing provides equipment financing to the construction industry through a network of financial experts. The company serves middle market contractors and distributors, as well as national and regional manufacturers. CIT Equipment Financing is an operating unit of The CIT Group, Inc. (NYSE: CIT; TSE: CIT.U), the largest publicly owned commercial finance company in the world, with more than $54 billion in total management assets (http://www.cit.com).

Editors Note: To request a 2001 CIT booklet or CD-ROM, please e-mail [e-mail] or call 973-740-5466