In North America, more than 5,400 major projects with a total investment value (TIV) of $314 billion will start construction in 2007, according to Industrial Info Resources' Project Spending Index released Wednesday.
Using a Confidence Factor derived from past spending performances, Industrial Info forecasts that more than $136 billion in project activity will actually take place in North America.
The Confidence Factor is the percent change in TIV from the initial forecast to the actual amount of spending that reaches fruition.
In the U.S., for 2007, $254 billion in activity is scheduled for construction. Based on a Confidence Factor of 43.5 percent, Industrial Info Resources estimates that $110 billion in spending will actually take place in the U.S.
For 2006, North American industrial project spending surged to 15.3 percent growth compared to 2005, with an increase from 5,450 projects valued at $144 billion in 2005 to 5,967 projects valued at $166 billion in 2006, according to the Project Spending Index.
Of the 14 market regions in North America that Industrial Info Resources tracks, eight saw spending rise in 2006, with the biggest growth in the New England region at 111 percent.
Other areas recording significant growth include included Western Canada at 67.4 percent, Atlantic Canada at 58.7 percent, the Great Lakes at 54.8 percent, and the Midwest at 35 percent.
Negative growth was seen in six North American market regions in 2006 including Mexico, Quebec, the West Coast, the Southeast, the Rocky Mountains, and the Northeast, according to the Industrial Info Resources' Index.