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

Business Editors

LIVINGSTON, N.J.--(BUSINESS WIRE)--November 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 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. This year the West South Central region has posted an OQ of 107, which represents the greatest gain of any region and the second best OQ in the country. In contrast, the national average has declined nine points since last year and dropped to a 93 OQ. The West South Central region, as defined by CIT, consists of Arkansas, Louisiana, Oklahoma, and Texas.

"An OQ index below 100 indicates a likelihood that construction activity will decline and an OQ above 100 indicates an increase for the upcoming year," explained Tom Reilly, 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 113 compared to the contractors 100.

"Both groups are enthusiastic about the year ahead with contractors boasting the highest sales volume of any part of the country and predicting net income to rise, while distributors have forecast gains in their bottom line and significant growth in commercial construction opportunities," said Reilly.

West 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 Reilly. "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