As we near the end of this year's first quarter, 2013 is shaping up to be a promising year for the Chemical Processing Industry (CPI). According to Trey Hamblet, Industrial Info's vice president of global research for the Chemical Processing Industry, in 2012 approximately $8 billion in CPI capital projects started in the U.S., while in 2013 about $9 billion projects have already been funded and approved.
While some of the projects planned to kick off this year could be canceled or pushed into the future for various reasons, in the CPI Industrial Info is seeing an increase in the percentage of the value of projects that actually start during a calendar year in regard to the value proposed to start at the beginning of the year--what we call the "confidence factor." As seen in the image at right (click to enlarge), this percentage has increased rapidly since hitting a low in 2009, when U.S. gross domestic production reached its lowest point in several years.
The landscape for the CPI, as well as several other industrial sectors, has changed drastically over the past few years as the economy has improved and an abundance of inexpensive shale gas has flooded the market. This has paved the way for significantly lower feedstock costs in certain sectors, producing a great deal of optimism and project planning in the Chemicals Industry.
Despite this increasing domestic strength, the CPI still faces headwinds as debt burden here and abroad, and sluggish growth in developing countries hinder global demand. The future of billions of dollars of projects depends on the continued low price of natural gas and the speed at which developing economies grow. Industrial Info continues expanding its global CPI project and plant coverage, particularly in global hotspots such as Southeast Asia and the Middle East, where the Chemicals Industry is developing rapidly.
Join Mr. Hamblet, along with the host of "Navigating the Currents of Change," to learn more about the development and trends that Industrial Info expects to see in the Chemical Processing Industry in 2013 and beyond.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.