According to research by Industrial Info Resources, industrial manufacturing industry total spending in North America should top $47 billion this year, while the forecast for 2007 indicates a slowdown to $43 billion.
In the U.S. next year, 800 projects worth $38 billion are scheduled, IIR said. Canada is next with 100 projects worth $3 billion, followed by Mexico, with 28 projects worth $1.5 billion.
By region, industry spending will be $16 billion in the Northeast, $6.5 billion in the Mid-Atlantic and $3.7 billion for the West Coast. By state, the biggest spenders will be New York with $7.5 billion, New Jersey with $6.2 billion and Virginia with $4.5 billion proposed for 2007.
Rail projects, projects in the automotive industry, the semiconductor/computer industry and the port industry will draw the most attention, accounting for 87 percent of industry spending, but only 28 percent of projects. Plastics and rubber products, printing and publishing, textiles and clothing, and metal fabricated products produce a large number of projects, though few have high-dollar amounts, IIR said.
Current projects for the industry include a $6 billion ARC rail expansion in New Jersey, a $4 billion Dulles Metrorail corridor project in Virginia, a $3.5 billion grassroot semiconductor manufacturing plant in New York, a $1.2 billion automobile assembly plant in Georgia, and a $600 million Naval Yard container terminal addition in South Carolina.
The passage of the Transportation Act allows for several light and commuter rail projects to transition from planning to construction in 2007, Industrial Info said. Meanwhile, foreign automakers are expected to invest in North America next year, adding to industry spending. When combined with the cyclical spending of the semiconductor/computer industry and the improvements being made in the port industry, as well as the smaller industries in the sector, Industrial Info is anticipating industry spending to surpass $50 billion.