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Headlines--- Pictures
from the Past-2000-Lurie-Ryan Snowstorm
Closes Leasing Companies,Schools,Businesses Weather
on the Internet/Guide to Inclement Weather VenCore
Leasing Solutions Secures Line from Comerica Not Raising Dues!!! EAEL...NAELB Dues
Comparison-- Leasing Association-- Up-Dated 18
Positions Open for Managers with Leasing
Experience Keystone
Leasing---Not Number #1 ATM
Machines---Do You Know the Way?
Fitch Ratings
Downgrade Conseco to a "D" Burger King 362 Store franchisee
files #11 William
Fike Named Head of Specialty Products
at Bank of the West
CIT Construction
Industry Forecast Improves, First Time:
5 Years #### Denotes Press Release ________________________________________________________________________
Pictures from the Past—2000—Lurie-Ryan
“It’s not all work and no play for Bruce Lurie
and Jack Ryan of Douglas-Guardian” 2000 Spring Conference, San Francisco, California United Association of Equipment Leasing Newsline,
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work with Group Leader Barry S. Marks
to ensure prompt, cost-effective responses
to client needs: Email:bsm@blik.com
ELA/NAELB http://65.209.205.32/LeasingNews/JobPosting.htm ________________________________________________________________________ Snowstorm Closes Leasing Companies, Schools,
Knocks Power (Looks like Christmas and all business will
be disrupted by the strong weather.
It was unusually warm in Santa Clara, California, yesterday:
74 degrees. Editor ) ROGER PETTERSON Associated Press ALAN MARLER/AP Jim Calloway removes snow from the driveway
of his business near Fletcher, N.C., on
Wednesday. An early Southern blast of
snow, sleet and freezing rain blew from
Arkansas into the Carolinas. A vast storm spread freezing rain and up to
a foot of snow from the Texas Panhandle to Virginia on Wednesday,
shutting down hundreds of schools, making
highways dangerously slick and knocking
out power to more than 100,000 people. "Everybody needs to stay home," Oklahoma
Highway Patrol Lt. Jerry Treadwell said. Slippery roads were blamed in at least six traffic
deaths, including two each in Kentucky
and Missouri and one each in Tennessee
and North Carolina. "It's nasty - sleet, snow, freezing rain,
a little bit of everything," said
Shari Clapp with the Kentucky State Police
in Mayfield. Snow fell along a path from Texas to the Appalachians
of southwestern Virginia. Only a few inches
fell in most areas, but nearly a foot
piled up in the Oklahoma Panhandle and
trees and power lines were coated with
ice across the state. In the Appalachians, the Blue Ridge Parkway
was shut down in North Carolina as a foot
of snow piled up in some areas. Fort Campbell,
the army post along the Kentucky-Tennessee
line, closed down. "Man, it's cold. That wind's been blowing
steady," said Greg Conner, 35, a
construction worker working on a new hospital
in Nashville, Tenn. A solid sheet of ice
covered part of the construction site. Schools were closed in nearly a dozen states,
including Oklahoma, Kansas, Missouri,
Arkansas, Kentucky, Tennessee, Illinois,
the Carolinas and Virginia. Some Georgia
schools closed as a precaution because
of expected icy roads. More than 100,000 students were sent home early
in the Charlotte, N.C., area and South
Carolina Gov. Jim Hodges told state agency
heads to let workers go home early in
22 counties ahead of the storm. Mason Modglin, 5, of Anna, Ill., got his "first
official snow day," said his mother,
Jean Modglin. "He told me, 'Mom, I looked outside with
my little eyes and it was all white!'"
said Modglin, who manages a bookstore. Some businesses also shut down early. "Some
of us have to drive 20 miles to get home,
and it would be nice to get there before
the worst of this hits," said Debbie
Martin, co-owner of D & J Hair Cuttery
in Gainesville, about 50 miles northeast
of Atlanta. Marvelle Hawkins stocked up on groceries at
Greenville, S.C., because an ice storm
four years ago trapped her at home with
no electricity or food. "When they say it's going to ice, it's
going to ice," said Hawkins, 31.
"I don't take the chance anymore." Stores sold out of ice scrapers and emergency
shelters braced for weather refugees.
At the Merita Bakery in Charlotte, N.C.,
employees were working overtime baking
bread. "If people just hear the threat of weather
you can't get it out there fast enough,"
bakery supervisor Mark Wilcox said. Some 37,000 homes and businesses were blacked
out in Oklahoma, utility officials said.
Lt. Gov. Mary Fallin declared 42 of the
state's 77 counties a disaster emergency
area, allowing utilities to ask for help
from out-of-state companies. About 56,000 homes and business had no electricity
in northern Arkansas, and utilities said
some people might have to wait until Saturday
to get their lights back. Another 23,000
people in Tennessee, 16,000 in North Carolina
and 3,000 in Kentucky also lost power. Delta Air Lines canceled several morning flights
to Atlanta from airports in Arkansas,
Tennessee and Kentucky, as well as three
outgoing flights. American Airlines also
reported delays in the region. The stormy weather was caused by a combination
of moist air flowing out of the Gulf of
Mexico and frigid air pouring down from
the north. Detroit had a low of 3 degrees Wednesday, tying
its record for the date. Two men died
after being found outside in the cold
there Tuesday. International Falls, Minn.,
had a low of 17 below zero, while the
wind-chill reading at Minot, N.D., reached
40 below. At the Petro truck stop near Madisonville, Ky.,
the restaurant was doing brisk business
as travelers took a break from the slick
Pennyrile Parkway. "I think they are getting off the highway
and eating just to calm their nerves before
they go back out there," general
manager Sue Holmes said. ----------------------------------------------------------------------------------------- Weather On the Internet National Weather Service: http://iwin.nws.noaa.gov http://www.wco.com/~paulg/weather.html Here is some more sites to gather info about
the weather. Intellicast: http://www.intellicast.com University of Michigan site: http://cirrus.sprl.umich.edu/wxnet Live Weather Images www.weatherimages.org Short Range Weather Forecasts (ETA) http://grads.iges.org/pix/eta.fcst.html http://grads.iges.org/pix/eta.jet.html http://grads.iges.org/pix/eta.850.html More weather locations: Your guide to coping with inclement weather http://www.accessatlanta.com/ajc/metro/1202/04weatherguide.html ######################## #################################### VenCore Leasing Solutions Secures $7 Million
Credit Facility from Comerica Comerica (NYSE: CMA), a leading financial services
company, and VenCore Solutions, the early
stage commercial equipment leasing experts,
announces that Comerica's Technology and Life Sciences
Division has provided VenCore with a $7
million line of credit. "We certainly understand the value of venture
leasing, so we are pleased to support
VenCore with this credit facility,"
said J.P. Michael, senior vice president
and manager in Comerica's Pacific Northwest
Technology and Life Sciences Division.
"Since we share a target market,
our collaboration will prove mutually
beneficial, and it will also benefit the
emerging growth companies that take advantage
of our respective services." VenCore Solutions provides equipment lines of
credit to early-stage companies that would
typically not qualify for traditional
lease financing. VenCore helps emerging
growth companies to conserve as much equity-based
venture capital as they can, without diverting it to
costs for equipment and infrastructure
and without having to further dilute equity
positions by seeking additional venture
capital. "Financial services and emerging growth
companies coming together is what VenCore
is all about. Over 75 percent of startup
and emerging growth companies combine
venture lease financing with venture capital
to maximize, leverage and schedule working
capital," said Len Ludwig, VenCore's
CEO. "Our VenCore team has the experience
in financing a wide range of equipment
to serve the emerging growth market. The timing couldn't be better
and VenCore's affiliation with Comerica
opens new avenues for both parties." About VenCore VenCore is a re-capitalized spin-off created
from the 17 year-old Venture Leasing Division
of FirstCorp. We are focused on providing
equipment lines of credit to early-stage,
entrepreneurial companies that do not
qualify for traditional lease financing. VenCore's clients
are emerging growth companies that have
received equity capital and may or may
not have received a first round of venture capital. These clients typically
need their first workstations, telephone
systems and office equipment. For more
information, visit www.vencore-solutions.com. About Comerica's Technology and Life Sciences
Division Comerica's Technology and Life Sciences Division
is one of the nation's leading technology
banking practices, offering a wide range
of financial services tailored to corporate
customers, entrepreneurs and professionals. Veteran bankers provide credit and financial
services and products to young, growing,
professionally backed technology and life
sciences companies, as well as their more
mature counterparts in the computer products,
Internet services, telecommunications,
life sciences and e-commerce industries.
From 19 offices located across the U.S.,
Comerica's Technology and Life Sciences
Division serves all major technology centers.
Comerica is among the 20 largest banking
companies in the nation, with $52.6 billion
in assets. For more information, visit
######################## ############################### Not Raising Dues!!! EAEL...NAELB Just to let you know, Eastern Association of
Equipment Leasing will be keeping our dues structure the same for 2003. Alison Pryor: Executive Director Executive Director --- The National Association of Equipment Leasing Brokers Board voted at
a recent Board Meeting to hold membership
dues at their current levels for our sixth
consecutive year without an increase!
We continue to believe that our Broker
Membership at $295.00 represents thevery
best value available today in our industry.
Our
continued growth in membership also represents
an outstanding value to the funders and
service providers remaining in or entering
our business. As NAELB members, they meet strong, dedicated brokers who are forging
ahead in small, middle and big ticket markets and are eager to build productive
working relationships. With our strong balance sheet, the NAELB feels
it has both the ability and responsibility to facilitate those meetings.
Our upcoming Chicago conference, March 20-23, 2003, will be a great
opportunity for them to introduce or reintroduce themselves to 300-400
potential originators of the business they’re looking for. Recognizing that the landscape has changed and
many firms are working with tighter budgets and on narrower margins, we’ve
made our Chicago Conference EARLY BIRD SPECIAL an exceptional value and
opportunity.
For only $1,345; exhibitors who sign up before the end of this
year get exhibit space, attendance at all conference functions, and
all other benefits of NAELB membership for a full year! The whole NAELB Board would like to publicly
thank all our members and everyone else who has supported our efforts
and continues to work with us while we all learn how to adapt to the new realities
of our business. Gerry Egan President NAELB President TecSource, Inc. 5621 Departure Drive, Suite 113 Raleigh, NC 27616 Phone: 919-790-1266 Fax: 919-790-2262 E-Mail: mailto:GerryEgan@ForEquipmentLeasing.com Internet: http://www.ForEquipmentLeasing.com Equipment Leasing Association “Fair Share” Since the last dues adjustment in 1992, the
fair share amounts have changed considerably
and consolidation has changed the industry's
profile.
The dues schedule was amended to
accomplish the goal of all members paying
at a dues level that at a minimum covers
costs. The dues schedule is fair share
based to ensure that the minimum dues
are sufficient to cover the basic association
costs of a membership (currently determined
to be $2,200) and the dues of larger companies
reflect the proportionately greater value
received based on company size. ELA is an association for EVERY company, large and small, that would like to
make a difference in the leasing industry.
Many thanks, Amy Miller Holmes Vice President, Communications Equipment Leasing Association 4301 N. Fairfax Drive, Suite 550 Arlington, VA 22203 703.516.8367; Fax: 703.527.2649 aholmes@elamail.com; <http://www.elaonline.com/> http://www.elaonline.com/ Visit <http://www.leaseassistant.org/>
http://www.leaseassistant.org to find
a leasing partner today -------------------------------------------------------------------------------------------- Dues Comparison-- Leasing Association-- Up-Dated http://www.leasingnews.org/DuesComparison.htm ________________________________________________________
18 Positions Open for Managers with Leasing
Experience I thought that this would be of interest to
your readers who are looking for employment. There are 18 regional manager positions
listed by UBS
on the Monster site for people with 5-10
years lending experience. They seem open to experience outside of the industry. The Regional Lending Manager responsibilities
include: Working to develop and create a loan business
based on the products and services offered by UBS. These products and
services include non-purpose securities-based loans, mortgages, and liquidity
solutions. Creating local marketing and sales plans. Direct prospecting of new loan business. Developing and closing deals, including negotiating
pricing and terms. Supporting the local UBS PaineWebber branches
to market loans to current branch clients and prospects. Qualifications: Bachelor's Degree from a four year college or
university Demonstrated success in generating substantial
non-purpose loans, using investment assets as collateral, to High Net
Worth individuals in local market. Superior sales, negotiating, interpersonal and
client service skills. Familiarity with securities-based, non-purpose
lending practices. 5-10 years of lending experience at a major
financial institution Active knowledge of local market conditions,
key client opportunities and business development opportunities in the community http://jobsearch.monster.com/jobsearch.asp?co=xpwebx&ah=http%3A%2F%2Fcompany Regards, Mr. Fred St Laurent Managing Director - Recruiting Bradbury and Williamson, Inc. Financial Services Division 4550 River Green Parkway - Suite 120 Duluth, Georgia 30096 321-952-5643 Fax fstlaurent@cfl.rr.com www.bwresults.com http://jobsearch.monster.com/jobsearch.asp?co=xpwebx&ah=http%3A%2F%2Fcompany Please send to a friend or person who is looking
for work Keystone Leasing---Not
Number #1 By Kit Menkin It is obvious that Keystone Leasing is not number
#1, and they are trying harder to beat out GE Capital, CIT Financial, CitiCapital,
Balboa Capital, you name them. The
full name is Keystone Equipment Leasing,
but principal Barry Reitman has it listed as: http://www.keystoneleasing.com/ When you do a search with your browser, whether
it is Yahoo, Google, or Copernic, the Keystone Equipment Leasing Website
may be number two or three, and most likely in the top five the search. Rarely in any of the tests for the past six months are they not in the top ten. When Leasing News asked him what was his secret,
had did he get to be listed so high in all the browser searches,
he said, “ If I told you, I would have to kill you.” Seriously, he says he has spent hours, days,
months building to this point. His website is perhaps one of the best I have
ever seen.
It is personable, reflects the company, the people, and has quite a bit
of information; up-dated often. After visiting it, you want to do business with
this company. Some of the key phrases that come up with the
search about equipment leasing: “...everything about equipment leasing and lease
financing of business equipment, professional,
municipal, manufacturing, medical, dental,
veterinary, computer ...” .”Look no further. You'll find it at www.keystoneleasing.com!
... At www.keystoneleasing.com, you'll
discover an easy to use, information packed
web site. “... “ No-frills service, no-frills pricing, and
access to most of the same straight-forward
contracts available at our primary site,
www.keystoneleasing.com . ...” “... Our low rates preclude start-ups (under
two years). www.keystoneleasing.com. One
Stop Equipment Leasing for Business! Any
Equipment. Competitive Rates. ...” “... Our low rates preclude start-ups (under
two years). http://www.keystoneleasing.com
- 0.207 - fw. Equipment Leasing Service.
No-frills Pricing. ...”
Picture of Barry with the love of his life Bruno
Magli ( originally he was Archie, but
he kept chewing Barry's favorite shoes,
thus his name today Barry
was born in da Bronx; raised in Yonkers.
Around the age of five he used to shag
softballs for his neighbor, Gene Krupa
and Krupa’s friends , who visited often.
(“ I have spent the past several decades
unsuccessfully trying to recall which
of ‘Mr. Krupa’s friends’ were there.”) After attending the Baruch School of the City
College of New York (“Give a yell; Give
a yell; Give a good substantial yell.”),
he found success selling photocopiers
in the Wall Street area of New York. (Part
of his sales territory included several
blocks of old buildings that were being
torn down to make way for what was to
be the World Trade Center.) Barry was
recruited by the copier division of Royal
Typewriter to Hartford, Connecticut, their
home office city. From there he went into
sales of industrial diamond abrasive tools.
This lead to the design and production
areas of electroformed diamond products. In 1978 he was hired as a nuclear component
installation machinist by the Electric
Boat division of General Dynamics. Fast-tracked
into nuclear installation management,
he became the senior shift supervisor
of nuclear component installation. During
his Electric Boat career he was given
special clearance to go to sea on the
USS Ohio, the first Trident class submarine.
(“This is why my eyes glow in the dark.”) In 1983, Barry and his late wife and partner,
Rita Marder, founded Keystone Equipment
Leasing, Inc. in Bergen County, New Jersey.
The firm, which specializes in small ticket
equipment leases, relocated to Blooming
Grove, New York in January, 2000. While
maintaining a strong relationship with
local and regional vendors and lessees
in the New York/New Jersey area, it has
also become an active presence on the
internet. Keystone’s website has been
actively, and so-far successfully, avoiding
the slings and arrows of outrageous scammers
since 1996. It has also helped complete
over fifty term papers for junior college
business majors throughout the country. His English Bull Terrier puppy, Bruno Magli,
goes to the office every day. (At fifty-five
pounds, Brunie is convinced, as was his
predecessor, Spice, that he is still qualified
to be a lap dog.) The Bull Terrier Club of America rescues approximately
75-125 dogs each year. The combination
of intelligence and sweet sensitivity
that make them such wonderful companions,
means that Bull Terriers in need have
special requirements. Your check made
payable to "BTCA Rescue" will
be a blessing. It can be sent to: Glenna Wright BTCA Rescue Support Chairman PO Box 1828 While Keystone Leasing is not number one, it
sure is trying harder than some of the more “expensive” and larger sites...It certainly
is a “first” of its kind. http://www.keystoneleasing.com/ ---------------------------------------------------------------------------------------------- ATM Machines---Do You Know the Way? One of our frequently asked questions is what
funding source do we recommend. One of the reasons to join a leasing association
is to learn who does what and are they “reputable.” One of the pieces of equipment that is often
requested, mostly by people new in the business, is who finances ATM machines. There
are many; however, some do not have a
broker program. We are told this company does: QL Capital.
Contact Glenn Fagerlin at 925-677-0622 In our F.A.Q. section on our website: http://www.leasingnews.org/FAQ/FAQ.htm We noted: Do you know who funds ATM machines? We
have started a program for a bank network;
it has a UNL agreement with teeth and
they are a strong credit. Rick
Frank We
have the ability to fund ATM deals, as
you described, that fall within our parameters.
There are others, such as Arrow Capital in San
Jose, California, who reportedly have
experience in funding ATM machines, but
that is about all we know at this time. ### ###################################### Fitch Ratings Downgrade Conseco to a “D” Fitch Ratings-New York-: Fitch Ratings has downgraded
the senior debt rating of Conseco Finance
to 'D' (Default) from 'CC'. The Default rating for Conseco Finance follows
today's announcement that Conseco Finance
elected not to make $4.7 million in guarantee
payments on Dec. 2, 2002 related to manufactured
housing securitization trusts. Conseco
Finance indicated that it intends to suspend
all such future guarantee payments relating
to manufactured housing trusts until there
is resolution to the restructuring of
its manufactured housing business. Conseco
Finance has indicated that such restructuring
may lead to a Chapter 11 bankruptcy filing. Contact: Thomas J. Abruzzo 1-212-908-0793 or
Christopher D. Wolfe 1-212-908-0771, New
York. Media Relations: James Jockle 1-212-908-0547,
New York. Glenwood, AR 71943 ########################################### --------------------------------------------------------------------------------------------------- Burger King 362 Store franchisee files for Chapter
11 bankruptcy BY ELAINE WALKER Miami Herald ewalker@herald.com Faced with debt from over expansion and declining
sales, Burger King's second-largest franchisee
on Wednesday filed for bankruptcy. AmeriKing's move to seek Chapter 11 protection
in U.S. Bankruptcy Court in Wilmington,
Del., comes as the fast-food industry
is stuck in a price war that threatens
to destroy the financial viability of
restaurant operations. ''Clearly the price pressure from McDonald's
is what did it to them,'' said Carl Sibiliski,
restaurant industry analyst with Morningstar.
``Burger King was teetering on the edge,
and McDonald's $1 menu pushed the envelope.'' By filing for bankruptcy, AmeriKing hopes to
reorganize its operations and restructure
the debt that has overburdened the company's
balance sheet. AmeriKing is in the process
of renegotiating the terms of its bank
loans. The suburban Chicago-based company
was unable to repay the $115.5 million
that was due to its lenders on June 30. AmeriKing's story illustrates the problem of
many Burger King franchisees who took
advantage of readily available capital
to fund expansion during the early and
mid-1990s. But when the Miami-Dade fast-food
chain's sales hit the skids at the end
of the decade, franchisees found themselves
overextended. ''We grew rapidly during the 1990s and we just
didn't have the sufficient cash flow to
service the debt,'' said Joe Langteau,
AmeriKing's president and chief executive,
who joined the company in February to
oversee the reorganization. ``We came
to the conclusion that it was in the best
interest of the company to take this step.'' For the first six months of this year, AmeriKing
reported a $22.9 million loss on sales
of $177 million, according to filings
with the Securities and Exchange Commission.
The company listed $291.7 million in debts
in its court filing today. As part of its restructuring plan, AmeriKing
this week closed 23 under performing restaurants,
leaving the company with 329 stores. The
majority of the employees were offered
positions at other restaurants. #### ######################################### William Fike Named Head of Specialty Products
at Bank of the West (San Francisco, Calif.) – Executive Vice President
William T. Fike has been named Division
Head of Specialty Products at San Francisco-based
Bank of the West. Fike, previously head of the bank’s SBA Lending
Division, replaces Jim Henry who was recently
named Chief Credit Officer. Bank of the West’s Specialty Products Division
provides lending products and services
that encompass six different business
segments: SBA lending, religious lending,
cash management, equipment leasing, health
care lending and correspondent banking. Don J. McGrath, President and Chief Executive
Officer of Bank of the West, said, “Bill
Fike has helped establish Bank of the
West as a recognized industry leader in
government guaranteed lending. As we expand
our Specialty Products Division to encompass
our nationwide SBA operation, we will
look to Bill to capitalize on strategic
opportunities that result from the integration
of the two.” “I’m confident he will lead
the division successfully on the heels
of our recent expansion into Southern
California.” Fike, with the bank since 1999, came to Bank
of the West as a result of its acquisition
of the former SierraWest Bank. Fike was
Sierra West’s President and Chief Executive
Officer. Highlights of his banking career
also include executive management positions
with CapitolBank Sacramento, Mother Lode
Savings Bank and Sacramento-based Point
West Bank. About
Bank of the West: San Francisco-based
Bank of the West (www.bankofthewest.com)
is the third largest commercial bank headquartered
in California with $25.7 billion in assets.
Bank of the West currently operates nearly
300 branches in California, Oregon, Washington,
Idaho, Nevada and New Mexico. The company
recently purchased Trinity Capital, San
Francisco, California. ############### ############################################## CIT Construction Industry Forecast Improves,
First Time in Five Years -
27th Annual Survey Sees 'Cautious Optimism'
for U.S. Construction Activity in 2003 - -
New England, Mountain States Expected
to Gain; Mid-Atlantic, W. North Central to Lag - TEMPE,
Ariz., -- CIT Group Inc. (NYSE: CIT) today announced the results of its annual Construction
Industry Forecast.
The 2003 outlook improved for the first time since
1998, as industry executives expressed "cautious optimism" for
U.S. construction activity next year.
The East- and West South Central regions posted
the highest optimism, while the Mid-Atlantic and West North Central regions
had the least optimistic outlook. The Mid-Atlantic region registered the biggest
change from a year ago, as optimism fell sharply. The survey also found
that the equipment and rental market recorded an optimistic outlook, while
rising insurance and financing costs were noted as a growing industry concern. Now
in its 27th year, the annual Construction
Industry Forecast independently surveys construction executives
on their perceptions of the state of the industry and trends for the coming
year in the U.S. and Canadian construction markets. Approximately 1,200 contractors
and equipment distributors were surveyed in a random telephone
sampling throughout North America. The Forecast is conducted and published
by CIT's Equipment Rental & Finance unit, one of North America's leading
providers of financial services to the construction industry. "Cautious
Optimism" The
Forecast's key benchmark -- known as the
Optimism Quotient (OQ) -- improved slightly to 89 from an OQ of 88 last
year, marking the first time in five years that the Forecast's main indicator
for U.S. construction activity increased year-over-year. Although index levels below 100 indicate lower optimism and suggest that construction activity
will not be as strong, this year's findings show initial signs of improvement
amid difficult economic conditions. "As
a leading economic indicator, it is encouraging
that this year's OQ showed a slight improvement for the first time
in five years," said John Burr, Group Chief Executive Officer of CIT Equipment
Rental & Finance.
"Over the last 27 years, the CIT Forecast has been a reliable
indicator of activity in the industry. Last year the Forecast predicted
a cautious outlook, and as such, U.S. construction spending grew a modest
1% in 2002." U.S.
Optimism Quotient Trend Year
Total Sample Contractors Distributors 1998
105 101 110 1999
104 103 105 2000
102 100 103 2001
93 92 93 2002
88 86 90 2003
89 88 89 On
balance, a majority of both contractors
and distributors predicted a stable outlook for construction activity next
year. Residential construction was noted as a bright spot among both groups
surveyed. Builders have become increasingly more optimistic about residential
construction in each of the last five years. Approximately 62% of builders
cited residential building as the industry's single biggest opportunity in
2003, while 64% of contractors -- an all-time high -- rated residential/apartment
building as their top business source. "This
year's findings are somewhat contrarian
compared to other private outlooks that are forecasting subdued construction
activity next year," commented Burr. "Industry insiders we surveyed
seem slightly more positive that the forecasts suggest." Regional
Highlights The
U.S. was divided into nine regions for
the survey: New England, Middle Atlantic, East North Central, West North Central,
South Atlantic, East South Central, West South Central, Mountain and Pacific.
A statistical summary of each region and corresponding states follows
this release. Following are the key highlights: *
The East and West South Central regions
both posted the highest OQ's at 100,
indicating strong optimism. --
This was the second straight year the
East South Central states
broke the 100 mark, and the only
region to post a five-year OQ
average of 100. *
The bicoastal areas of New England and
the Mountain regions experienced the
biggest increases in OQ, driven by a boom
in residential construction. --
New England gained 15 points and posted
an OQ of 82, a nearly 22%
improvement over last year. --
Mountain experienced a 14-point increase
to an OQ of 94,
approximately 17% better than last
year. *
Conversely, the Mid-Atlantic and South
Atlantic regions saw the most marked
year-over-year decline in OQ. --
The Mid-Atlantic states fell 15 points
to an OQ of 78, which is
18 points below the region's five-year
average of 96. --
The South Atlantic states slipped below
the 100 mark for the
first time since 1996, recording
an OQ of 93, or a loss of 10
points from last year. U.S.
Construction Trends Industry-wide,
executives are "cautiously optimistic"
about their business, predicting a slight increase in net
income. About 38% of contractors and 42% of distributors expect net income will
be up next year, balanced against 15% and 12%, respectively, who believe
net income will be lower. At the same time, rising financing and insurance
costs pose the biggest challenges. About 85% of contractors and 87%
of distributors cited rising insurance costs among the industry's most pressing
problems. Half of contractors and distributors surveyed believe
financing costs will also increase next year, against the backdrop of
an expected rise in interest rates. On
the equipment front, the industry is optimistic
about purchasing activity, generally viewed as a reliable indicator
of industry confidence. The percentage of contractors who plan to buy equipment
rose for the third consecutive year. About half surveyed expect
to buy new or used equipment in 2003, up from 42% last year, although overall
they plan to invest about 25% less on new equipment. Distributors also shared
a relatively optimistic view, as 85% projected that their new equipment sales
will increase or at least remain the same next year. The
equipment rental market also experienced
a positive outlook. Ninety two percent of contractors who rent or lease
equipment expect similar activity levels next year, with 15% planning to use more
rental equipment.
Renting and leasing equipment continues to be an attractive
option, as 32% of contractors cited the cost savings as a major factor to
rent or lease equipment. Distributors were also optimistic about the
rental market, as 48% expected an increase in rental income next year. The general
equipment segment was particularly bullish -- with 62% of distributors
who sell general equipment expecting an increase in their rental income. Internet
use continues to be an important information
and communication resource, and for the third consecutive year
more than 75% of distributors and more than half of contractors surveyed expect
their Internet use to increase next year. E-commerce was noted as a big growth
spot, where 62% of distributors expect to sell equipment online
next year. Building company web sites was also noted as a key area of focus
for next year, as currently only 20% of contractors and 67% of distributors have
a company web site. For
a copy of the CIT Construction Industry
Forecast, Please contact Hilary Mariassy at (212) 704-8217. About
CIT Group Inc. CIT
Group Inc. (NYSE: CIT), a leading commercial
and consumer finance company, provides clients with financing and
leasing products and advisory services. Founded
in 1908, CIT has nearly $50 billion in
assets under management and possesses the financial resources,
industry expertise and product knowledge to serve the needs of clients
across approximately 30 industries.
CIT holds leading positions in
vendor financing, U.S. factoring, equipment and transportation financing, Small
Business Administration loans, and asset-based and credit-secured lending.
CIT, with its principal offices in New York City and Livingston, New Jersey
has approximately 6,000 employees in locations throughout North America, Europe,
Latin and South America, and the Pacific Rim. For more information, visit http://www.cit.com CIT
Equipment Rental & Finance -- U.S.
is a leading lessor and lender in the construction, printing, machine tools, plastics,
healthcare, and manufacturing markets. Further information can
be obtained at the company's website at http://www.efinance-it.com. 2003 Regional Optimism Quotients Region
2002
2003 Change States W.
South Central
94 100 6 Arkansas, Louisiana, Oklahoma,
Texas E.
South Central
101 100 -1 Alabama, Kentucky, Missouri,
Tennessee Mountain
80
94 14
Arizona, Colorado, Idaho, Montana, Nevada, New
Mexico, Utah, Wyoming South
Atlantic
103 93 -10 Delaware, DC, Florida,
Georgia, Maryland,
North Carolina,
South Carolina,
Virginia, West Virginia E.
North Central
97 91 -6 Illinois, Indiana, Mississippi,
Ohio, Wisconsin Pacific
83
86 3
California, Hawaii, Oregon, Washington New
England
67
82 15
Connecticut, Maine, Massachusetts,
Rhode Island, Vermont Middle
Atlantic 93 78
-15 New York, New Jersey, Pennsylvania W.
North Central
77 73 -4 Iowa, Kansas, Minnesota,
Nebraska, North Dakota,
South #################### ############################################
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