U.S. Midwest Sees Windfarms, Rail Upgrades Drive More than $8.5 Billion in First-Quarter 2016 Project Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--Windfarms, freight-rail projects and a single biotechnology park account for almost two-thirds of the $8.54 billion in projects set to begin construction in the U.S. Midwest region in first-quarter 2016, according to Industrial Info's project database. More than 70% of the total is attributed to just three industries: Power, Pharmaceutical & Biotech, and Industrial Manufacturing.

Click on the image at right for a graph detailing active projects scheduled to kick off in the first quarter of 2016 in the U.S. Midwest region, by industry.

The Midwest region includes Iowa, Kansas, Minnesota, Missouri, North Dakota, Nebraska and South Dakota. Nebraska is the only state not represented in the top 10.

The Power Industry leads the pack with $3.45 billion in projects currently set to begin construction in the Midwest in first-quarter 2016. One of the largest is MidAmerican Energy Company's (Des Moines, Iowa) $595 million construction of the Ida Grove Windfarm in Battle Creek, Iowa. The 301-megawatt (MW) facility will feature 134 wind turbine generators, each with a capacity of 2.24 MW. MidAmerican is a subsidiary of Berkshire Hathaway Incorporated (NYSE:BRK.A) (Omaha, Nebraska). For details on this construction project, see Industrial Info's project report.

The Pharmaceutical & Biotech Industry is in a distant second place with $1.55 billion in projected kickoffs, almost all of which is attributed to the largest single Midwestern kickoff in the first quarter: Oxford Companies LLC's (Kansas City, Missouri) $1.3 billion construction of a biotechnology park in Kansas City, Missouri. Called the Oxford on the Blue Biotechnology Park, the 4 million-square-foot facility is expected to house multiple tenants for the research of life sciences and biotechnology. For details on this construction project, see Industrial Info's project report.

The eight remaining highest-value projects set to kick off in the U.S. Midwest region in the first quarter are:

• $1 billion: Phase I of Denali Energy's Hartland Windfarm in Minot, North Dakota
  For details on this construction project, see Industrial Info's project report.
• $450 million: Segment of Rimrock Midstream's Grand Mesa crude-oil pipeline in Kansas.
  For details on this construction project, see Industrial Info's project report.
• $400 million: SunWind Energy Group LLLP's Doyle Windfarm in Marion, Kansas
  For details on this construction project, see Industrial Info's project report.
• $350 million: Hess Corporation's drilling program for natural gas-gathering field in North Dakota's Bakken Shale
  For details on this construction project, see Industrial Info's project report.
• $300 million: NextEra Energy Incorporated's Brady Wind Energy Park in Dickinson, North Dakota
  For details on this construction project, see Industrial Info's project report.
• $210 million: Electricite de France S.A.'s Stoneray Windfarm in Woodstock, Minnesota
  For details on this construction project, see Industrial Info's project report.
• $200 million: Consolidated Edison Incorporated's Campbell County Windfarm in Pollock, South Dakota
  For details on this construction project, see Industrial Info's project report.
• $200 million: DCP Midstream LLC's cryogenic natural gas-processing plant in Copeland, Kansas
  For details on this construction project, see Industrial Info's project report.

Although the Industrial Manufacturing Industry does not have a project among the top 10, it is the third highest-valued industry, with $1.13 billion in first-quarter 2016 kickoffs in the Midwest. All but $100 million of that total is attributed to freight rail networks, led by Burlington Northern Santa Fe Corporation's (BNSF) (Fort Worth, Texas) $161 million upgrade and rehabilitation program for the state-wide Kansas network . BNSF, also a subsidiary of Berkshire Hathaway expects to perform upgrades, modifications and rehabilitation work on 1,709 miles of track as well as intermodal terminals, rail yards, hump yards, sidings, transloading facilities and automotive distribution facilities. For details on this project, see Industrial Info's project report.

More than three-quarters of the region's total investment value (TIV)--$6.72 billion--is related to 93 projects that are now in the planning stages, where plenty of factors could increase, decrease or eliminate the expected spending. The region also has 48 projects worth nearly $1.68 billion in the engineering stages, while 62 projects worth about $149 million already have kicked off the first stage of construction and will kick off the second in the first quarter.

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.