CIT's 25th Annual Construction Industry Forecast Shows South Atlantic Region With Higher Optimism Quotient Than National Average.

Business Editors

LIVINGSTON, N.J.--(BUSINESS WIRE)--Nov. 14, 2000

Decline in U.S. Construction Market Activity Predicted

on the National Level 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 bittersweet. CIT Equipment Financing 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. This year the South Atlantic region is up one point since last year and has the highest optimism level in the country with an OQ of 112. However, the national average has dropped nine points to an OQ of 93, which trails the robust South Atlantic OQ by 19 points. The South Atlantic region, as defined by CIT, consists of Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia.

"An OQ index below 100 indicates a likelihood that construction activity will decline and an OQ above 100 indicates activity will increase in the upcoming year," explained Ron Riecks, Senior Vice President - Sales, CIT Equipment Financing.

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.

Area distributors are even more optimistic in their outlook than contractors, reporting an OQ of 119 versus the contractors at 105

"Both groups are upbeat about the year ahead with contractors predicting more bidding activity than their national counterparts and with distributors posting the highest OQ in the country while also forecasting the highest percentage of gains in their net income level," said Riecks.

Contractors in this region have the lowest website presence with only 9% reporting they have sites, but distributors are more willing to venture into cyberspace with 51% reporting their own corporate websites.

South Atlantic 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