Industrial Manufacturing Project Spending Looking Good For 2Q

Although the year started off slowly, the second quarter will see 568 projects at an investment of $15.6 billion, according to Industrial Info Resources.

Although the year started off slowly for industrial manufacturing spending, with only $10.2 billion in construction starts, this will increase as the prime construction period begins during the second quarter of 2007.

According to research released Monday from Industrial Info Resources, $15.6 billion worth of projects, for a total of 568 projects, are planned to start construction in April, May and June in the U.S., but this is about $3 billion less then the same period for 2006.

In April, there will be approximately $9.2 billion worth of construction projects in progress, or 59% of the quarter’s spending totals, followed by $2.8 billion in May and $3.5 billion in June. 

The Northeast region, at $4.3 billion, will have the most investments for the quarter, although the Great Lakes region, at 123, will have the most projects but at a lower investment rate of only $1.4 billion, the research indicates.

In second place, the Southeast region will see investment totals of $3.4 billion for 116 projects, followed by the West Coast region with about $2.3 billion and the Southwest region with approximately $2 billion.

Industrial Info notes that the top five spending states during the second quarter are New York with $4 billion, California at $1.9 billion, Texas at $1.6 billion, Georgia at $1.5 billion and Tennessee with $1.1 billion.

Construction spending for the industrial manufacturing industry should continue to be strong through the fall of 2007, predicts Industrial Info Resources. 

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