North America Sees Planned Spending for 2016 Tumble More than 8% from Year-Ago Estimate for 2015

Researched by Industrial Info Resources (Sugar Land, Texas)--Planned industrial project spending for North America in 2016 stood at $372.93 billion at the end of April, compared with a $406.28 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 April's spending indexes, by market region.

Most of the 8.21% decline can be attributed to three industries: Power, Oil & Gas Production and Metals & Minerals. Power declined 21.79% to $89 billion, Oil & Gas Production declined 29% to $33 billion, and Metals & Minerals declined 28% to $34.8 billion. 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 $68.4 billion in Power, more than $103.5 billion in Oil & Gas Production and more than $41.75 billion in Metals & Minerals.

The Food & Beverage Industry, on the other hand, saw a significant increase in spending, growing more than 50% to $18.8 billion in its estimates for 2016. One of its largest projects set to kick off this year is Costco Wholesale Corporation's (NASDAQ:COST) (Issaquah, Washington) poultry-processing plant in Fremont, Nebraska. The plant is expected to process 1.6 million birds per week. For more information, see Industrial Info's project report.

The Western Canadian region has seen one of the sharpest geographical drops, from $44 billion for 2015 projected this time last year, to a $29 billion projection for 2016. In addition to the dramatic decline in commodity prices, the region has taken a hit from the recent wildfire in and around Fort McMurray, Alberta, which is likely to cause a staggering economic loss for the area, including its breadwinning oil sands. For more information, see May 6, 2016, article - Canada's Oil Sands Production Takes Big Hit Due to Fort McMurray Fire.

One bright spot in Canada is Quebec, where estimated construction starts for the year stand at $11 billion, more than double the $4 billion estimate made at the same time in 2015.

Industrial Info's Project Spending Index is a monthly indicator that compares planned industrial project spending for the current year to the previous year, in order to measure growth or contraction in the industrial market. The index provides spending details by industry and market region, including monthly updates that measure the rate of activity from this year to last year during the same month.

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 http://www.industrialinfo.com/.