Decline in U.S. Construction Market Activity Predicted For 2001 (NAPS)—Experts predict a decline in U.S. construction market activity for 2001, according to the 25th annual Construction Industry Forecast, conducted by CIT Equipment Financing. Based on tele- phone interviews with more than 900 contractors and distributors throughout the United States, the survey reports Optimism Quotients (OQs) for the nation, as well as nine regional segments throughout the United States. This year’s survey participants New buildings will rise again when optimism rises, economists explain. have reported a national 93 OQ. year have shown a willingness to Optimism Quotient has fallen explore emerging opportunities on the Internet. They use it mostly to This marks a nine-point drop versus last year andthefirst time the below 100 since 1997. Of the nine regions in the survey, the South Atlantic has the highest OQ this venture into cyberspace and communicate with customers or locate product information. Con- year at 112, while the New England region has posted the lowest tractors and distributors also use the ’Net to buy, lease, or rent equipment. “An OQ index below 100 indi- most serious problem facing the at 78. cates a likelihood that construction activity will decline,” explained Kay Russell, Senior Vice President, Construction Sales, CIT Equip- Respondents indicate that the industry is the lack of a qualified workforce. Since 1998, contractors and distributors have expressed a ment Financing. “In the past few concern that the competitive job market has caused the industry to reaching historically high levels have the training and skills necessary to get the job done. While most industry executives even in an environment of slowed activity, qualified construction pro- cite a strong economy or morebid- said Russell. “They have the continued opportunity to market years, the construction industry has seen tremendous growth, that would be difficult to maintain long-term.” expect to maintain status quo, those predicting increased activity ding/building opportunities. Less optimistic executives are worried that high interest rates will lead to a decrease. Survey participants agree that costs will continue to rise for ser- vice, parts, maintenance, and financing in 2001. Executives this accept workers who do not always “On a positive note, however, fessionals are gainfully employed,” themselves in any numberof the industry’s segments that are seeking such experienced personnel.” For a 2001 CIT booklet or CD- ROM, e-mail, laura.plemenik @cit.com or call 973-740-5466 or access it on-line at www.efinanceit /ad/NAPS.
