More Than 5,000 U.S. Industrial Construction Projects On Tap For 2007

Project spending for 2007 starts out at $257.8 billion, a 45 percent increase over 2006, according to Industrial Info Resources research released Thursday.

This year is starting off with more than 5,000 major industrial projects expected to begin construction in the U.S., up from the 4,590 projects that began in 2006, according to research released Thursday from Industrial Info Resources.

These 2007 projects add up to over $257.8 billion in planned capital and maintenance expenditures, also a significant increase over the $178 billion of 2006.

But Industrial Info forecasts that as 2007 progresses, approximately 40 percent to 50 percent of these projects will be cancelled or postponed.

The Southwest region, (Arkansas, Louisiana, Oklahoma, and Texas), with $48.8 billion from 875 projects,
leads as the area with the most planned spending for 2007, the research noted. Energy projects, such as coal-fired gasification and power plant projects, comprise most of the larger projects in the Southwest region. Large-scale natural gas pipeline, petroleum refining, and LNG terminal projects are also being evaluated.

The Great Lakes region is second with 936 projects totaling approximately $46.6 billion. Coal-fired, petroleum refining, and metals & minerals projects will dominate project spending in the Great Lakes region in 2007.

Industrial Info's research indicates other industrial planned spending as:

     – 32 projects with a total investment value (TIV) of $1 billion or more

     – 631 projects with a TIV of $100 million or greater

     – The largest planned project is a $6 billion ARC rail expansion by the New Jersey Transit Corp. to connect Manhattan to New Jersey. This project includes a tunnel under the Hudson River.

     – The smallest project is a $500,00 soybean railcar unloading system addition at a soybean processing plant in New York.
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