North America Sees Planned Project Spending Plummet 11% from Year Earlier

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Researched by Industrial Info Resources (Sugar Land, Texas)--Planned industrial project spending for North America in 2016 stood at $296.22 billion at the end of August, compared with a $334.34 billion estimate for 2015 at the end of the same month last year, according to Industrial Info's North American Industrial Project Index.

Click on the image at right for a graph detailing August's spending indexes, by market region.

Most of the 11.4% decrease can be attributed to just three industries: Oil & Gas Production, Alternative Fuels and Power. These trends are reflected in Industrial Info's most recent North American Spending Gap Index, which analyzes the "fallout" that results from projects being canceled or delayed due to unfavorable market or economic conditions. It recorded a strong number of canceled or delayed projects in the three industries: more than $113.5 billion in Oil & Gas Production, more than $7.8 billion in Alternative Fuels and more than $82.2 billion in Power.

The Oil, Gas & Refined Product Pipelines Industry, on the other hand, saw a significant increase in spending, growing more than 30.6% to $27.2 billion in its estimates for 2016. One of the largest pipeline projects to have kicked off this year is part of the Mariner East Expansion project's second phase by Sunoco Logistics Partners (NYSE:SXL) (Newtown Square, Pennsylvania), which will move more than 272,000 barrels per day of natural gas liquids from Ohio to Sunoco's Marcus Hook facility in Pennsylvania.

The U.S. Southwest region has seen one of the sharpest geographical drops, from nearly $90 billion for 2015 projected this time last year, to a $52.8 billion projection for 2016. The region, including Texas, Louisiana, Arkansas and Oklahoma, has taken a hit from the dramatic decline in commodities prices.

One bright spot in North America is the New England region, where projected spending jumped 179.82% to $15.5 billion. One of the biggest projects set for kickoff this year in New England is the Massachusetts Bay Transportation Authority's $8.9 billion Haverhill Commuter Rail Improvement Upgrade in Canton. The New England region also includes Connecticut, Maine, New Hampshire, Rhode Island and Vermont.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at https://www.industrialinfo.com/.