About $19 Billion in Industrial Projects Scheduled to Begin Construction in the U.S. in September
SUGAR LAND–September 6, 2012–Researched by Industrial Info Resources (Sugar Land, Texas)–2012 has been an odd year for project activity in the U.S. Following a very weak winter season, construction activity began much earlier than in past years. While spending has remained strong for the year as a whole, numbers on monthly construction starts and spending have wavered all over the place. Looking at what projects, both capital and maintenance, are scheduled to begin construction activities in September, Industrial Info is currently tracking just more than 600 projects worth an estimated $19 billion.
September’s construction spending level is the highest the country has seen for several months. The peak in total construction occurred in April 2012, when more than $34 billion in projects began construction activities. The total spending decreased in May and has continued to drop ever since. September’s $19 billion in activity is the highest spending total since May, when $28 billion in projects began work. The months of June, July and August had significantly less spending activity with only $11 billion in projects beginning in June, $12.9 billion in July and $15.9 billion in August.
It appears as though spending is heading back up; at least it has increased each month since the June lull. However, the country is closing in on another winter season, and that may change things when it comes to construction activity. Typically, industrial construction activity slows in the winter months, as it is more difficult to get things done in rough weather. There is the possibility that this coming winter will be a mild one like last year, but companies cannot bet on that and must plan for more severe weather that could hamper construction efforts.
The Southwest region of the country is expected to see both the largest number of projects beginning construction and the highest level of investment in September. A total of 146 capital or maintenance projects worth an estimated $4.8 billion are expected to begin construction during the month in this key region. The Northeast region of the country will see the second-highest spending totals, if all the projects make it to the construction stage, as $3.4 billion in projects are expected to start in that region. The Great Lakes region will be home to the second-largest number of projects at 120, but they are smaller in nature, as the region is only expecting $1.7 billion in total investment.
The Alternative Fuels Industry is expected to be the largest spender during September. About $4.4 billion in the form of 45 capital or maintenance projects is scheduled to begin construction activities within that key industry. The Industrial Manufacturing Industry will see some significant investment as well, with its 37 projects worth $3.4 billion, and the Power Industry, always a major spender, will add another 89 projects worth $2.7 billion. The Oil & Gas Transmission, Food and Beverage and Pharmaceuticals & Biotech industries are each expected to have more than $1.5 billion in projects begin construction in September as well.
While several of the projects currently scheduled to begin construction in September will be delayed, placed on hold or outright canceled in the coming days, which will reduce the total spending for the month, it should not be a significant amount of projects. Looking ahead even farther, proposed spending in both October and November is high: $25.8 billion in October and $22 billion in November, but that will change dramatically if the weather turns nasty as winter begins. If the winter turns out to be mild yet again, look for continued increases in total spending through the end of 2012. Hopefully, this level of investment will not only continue through the end of the year, but well into 2013, which would help with the overall economic situation in the U.S.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info’s quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what’s happening now, while constantly keeping track of future opportunities.post from industrialinfo.com