Released March 26, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--What a difference a year can make in industrial spending. Industrial Info's North American Industrial Project Spending Index for February registered a $26.25 billion, or 3.92%, drop compared with the same month in 2019. Four of the 12 industries tracked by Industrial Info registered double-digit reductions.
The spending index, which measures the value of all active projects in the pipeline for the year, amounted to $643.08 billion in February, compared with $669.33 billion in February 2019.
Click on the image at right for a graph detailing the spending index.
A drop in spending was seen in Oil & Gas Production (down $28.12 billion, or 25.97%), Petroleum Refining (down $4.54 billion, or 22.56%), Chemical Processing (down $14.39 billion, or 29.21%) and Industrial Manufacturing (down $29.33 billion, or 19.37%).
Total spending in the U.S. in February was $455.47 billion, down 2.56% from a year earlier. Canada registered a $14.88 billion (10.61%) year-over-year reduction, while Mexico saw a $580 million (0.93%) increase.
The American Petroleum Institute (API) said its monthly statistical report for February provided an early indication of the impact of the COVID-19 pandemic on energy markets. The data reflected downturns in demand for diesel and jet fuel, but a slight increase in gasoline, suggesting many consumers chose to drive instead of fly during the month.
"The demand destruction resulting from the coronavirus, combined with Saudi Arabia and Russia increasing supply, has left global energy markets in unchartered territory," said API Chief Economist Dean Foreman in a March 19 press release.
American Fuel & Petrochemical Manufacturers (AFPM) Chief Industry Analyst Susan Grissom said in a press release on Tuesday that despite the turmoil caused by COVID-19, the U.S. refining industry "is the most competitive and resilient in the world."
She continued: "One of the strengths of the U.S. refining industry as a whole is that it is not monolithic - it includes a number of different business models, sizes and specialties."
"Many U.S. refiners are diversified businesses that don't depend solely on the sale of liquid transportation fuels for profitability, which insulates them from demand shocks like that which is resulting from efforts to address COVID-19," Grissom said. "Others are independent and merchant refiners that have no part in upstream energy extraction or the retail sales of finished gasoline, which insulates them from things like the Russia-Saudi oversupply challenge."
Other industries saw year-over-year gains in the spending index ranging from 3.97% (Oil & Gas Pipelines) to 53.99% (Metals & Minerals).
The Institute for Supply Management (ISM) said economic activity in the U.S. manufacturing sector grew in February, and the overall economy grew for the 130th consecutive month. The ISM's Purchasing Managers Index (PMI) registered 50.1%. Any reading above 50% signifies growth.
The North American Spending Gap Index, which measures the amount of fallout from projects that have been cancelled, placed on hold or moved to another year, saw a massive year-over-year increase of 167.85%, totaling $70.43 billion in February, compared with $44.13 billion a year earlier. The spending gap widened in six of the 12 industries tracked by Industrial Info. In terms of project value, Industrial Manufacturing took the biggest hit ($23.44 billion, or 95.48%). By percentage, Oil & Gas Production was the biggest loser (257.28%, or $17.27 billion).
Click on the image at right for a view of the graph of the spending gap index.
On the plus side, Industrial Info's February North American Construction Starts Index, which measures the amount of project activity that has been funded and started construction for the year, amounted to $53.6 billion in February, up 62.7% from a year earlier. Total investment values rose in nine of the 12 industries tracked by Industrial Info.
The Power Industry saw the biggest year-over-year gain in construction starts, totaling $14.82 billion, an increase of 184.7%.
Click on the image at right for a graph of the Construction Starts Index.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.
The spending index, which measures the value of all active projects in the pipeline for the year, amounted to $643.08 billion in February, compared with $669.33 billion in February 2019.
A drop in spending was seen in Oil & Gas Production (down $28.12 billion, or 25.97%), Petroleum Refining (down $4.54 billion, or 22.56%), Chemical Processing (down $14.39 billion, or 29.21%) and Industrial Manufacturing (down $29.33 billion, or 19.37%).
Total spending in the U.S. in February was $455.47 billion, down 2.56% from a year earlier. Canada registered a $14.88 billion (10.61%) year-over-year reduction, while Mexico saw a $580 million (0.93%) increase.
The American Petroleum Institute (API) said its monthly statistical report for February provided an early indication of the impact of the COVID-19 pandemic on energy markets. The data reflected downturns in demand for diesel and jet fuel, but a slight increase in gasoline, suggesting many consumers chose to drive instead of fly during the month.
"The demand destruction resulting from the coronavirus, combined with Saudi Arabia and Russia increasing supply, has left global energy markets in unchartered territory," said API Chief Economist Dean Foreman in a March 19 press release.
American Fuel & Petrochemical Manufacturers (AFPM) Chief Industry Analyst Susan Grissom said in a press release on Tuesday that despite the turmoil caused by COVID-19, the U.S. refining industry "is the most competitive and resilient in the world."
She continued: "One of the strengths of the U.S. refining industry as a whole is that it is not monolithic - it includes a number of different business models, sizes and specialties."
"Many U.S. refiners are diversified businesses that don't depend solely on the sale of liquid transportation fuels for profitability, which insulates them from demand shocks like that which is resulting from efforts to address COVID-19," Grissom said. "Others are independent and merchant refiners that have no part in upstream energy extraction or the retail sales of finished gasoline, which insulates them from things like the Russia-Saudi oversupply challenge."
Other industries saw year-over-year gains in the spending index ranging from 3.97% (Oil & Gas Pipelines) to 53.99% (Metals & Minerals).
The Institute for Supply Management (ISM) said economic activity in the U.S. manufacturing sector grew in February, and the overall economy grew for the 130th consecutive month. The ISM's Purchasing Managers Index (PMI) registered 50.1%. Any reading above 50% signifies growth.
The North American Spending Gap Index, which measures the amount of fallout from projects that have been cancelled, placed on hold or moved to another year, saw a massive year-over-year increase of 167.85%, totaling $70.43 billion in February, compared with $44.13 billion a year earlier. The spending gap widened in six of the 12 industries tracked by Industrial Info. In terms of project value, Industrial Manufacturing took the biggest hit ($23.44 billion, or 95.48%). By percentage, Oil & Gas Production was the biggest loser (257.28%, or $17.27 billion).
On the plus side, Industrial Info's February North American Construction Starts Index, which measures the amount of project activity that has been funded and started construction for the year, amounted to $53.6 billion in February, up 62.7% from a year earlier. Total investment values rose in nine of the 12 industries tracked by Industrial Info.
The Power Industry saw the biggest year-over-year gain in construction starts, totaling $14.82 billion, an increase of 184.7%.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.
