For the eighth consecutive month in 2006, industrial project spending in North America was up, according to Industrial Info’s Industrial Project Spending Index.
The Project Spending Index is a monthly indicator comparing current year total investment value based on construction starts to the previous year, to get a measure of growth or contraction in the industrial market.
Industrial Info's index covers spending activity of 12 vertical markets - Power, Terminals, Oil & Gas Transmission, Oil & Gas Production, Synfuels, Petroleum Refining, Chemical Processing, Metals & Minerals, Pulp, Paper, & Wood, Food & Beverage, Industrial Manufacturing, and Pharmaceutical & Biotech. Project values are based on scheduled construction starts.
The North American Industrial Project Spending index monthly percentages peaked in April 2006 at 33.42 percent growth.
Although the percentages declined in May and June, they increased July and August. Each month in 2006 showed substantial growth when compared to analyzed project spending in 2005.
These statistics are positive indicators for for engineers, contractors, and service providers in 2006 and into 2007 as these projects proceed through construction to commissioning.
The Spending Index reports that most of the vertical industrial market segments are up in 2006, with Oil & Gas Production (213 percent growth), Synthetic Fuels (150 percent growth), and Metals & Minerals (84 percent growth) showing the biggest gains.
Industries coming in with decreases in project spending include: Terminals (-28 percent), Petroleum Refining (-41 percent), and Pulp, Paper, & Wood (-4.7 percent).