Released June 18, 2021 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Project spending in North America (U.S., Canada and Mexico) is up 38.2%, according to the most recent update of the North American Industrial Project Spending Index. In the U.S. alone, spending is up 47.72%, led by growth in the Industrial Manufacturing Industry.
In comparison, the North American index recorded a 26% drop in June 2020, as project spending reflected the economic impact of the COVID-19 pandemic and a sharp drop in oil prices. For more information, see July 29, 2020, article - IIR Project Spending Index Drops 26% in June, but Economic Recovery Signs Grow Stronger.
The spending index compares planned industrial project spending for the current year to the previous year, in order to get a measure of growth or contraction in the industrial market. The index, which is available to subscribers to Industrial Info's Global Market Intelligence (GMI) Database, 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.
Click on the image at right for graph showing North American industrial spending growth for this year through June.
In the U.S., all but one of the 12 industries tracked by Industrial Info showed spending increases in the most recent update. Only Oil & Gas Pipelines recorded a decrease.
Industrial Manufacturing led all the Industries in spending growth in the U.S., totaling $146.2 billion, up 77.55% year over year. Construction currently is underway on well over 1,000 Industrial Manufacturing projects in the U.S., led by the Transportation Systems sector in terms of total investment value. In California, construction is underway on a 32-mile segment of a high-speed railway system that will whisk passengers at speeds up to 200 miles per mile between San Francisco and Los Angeles in less than three hours. In June, the federal government finalized an agreement to restore nearly $1 billion in funding for the rail project, which had been revoked by the Trump administration in 2019. However, state funding for the project was not included in a $262 billion budget measure passed late last month by California state legislators, which could affect the project's timeline. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a detailed project report.
The results of a quarterly survey released last month by the National Association of Manufacturers (NAM) indicated capital spending expectations by U.S. manufacturers were the strongest in nearly three years as the economy continued its recovery, with respondents anticipating an average increase of 3.3% over the next 12 months. For more information, see June 28, 2021, article - Survey: U.S. Manufacturers' Capital-Spending Expectations at Nearly 3-Year High.
Economic activity for the 18 industrial sectors followed by the Institute of Supply Management (ISM) (Tempe, Arizona) grew in June, registering the 13th consecutive month of growth after contraction in April 2020. Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a press release that manufacturing "performed well" in June, with demand, consumption and inputs registering growth compared with May.
By market region, overall project spending for all industries was strongest in the U.S. Southwest, amounting to nearly $98 billion, compared with about $60 billion a year earlier. Projects currently under construction in the region, which includes Texas, Louisiana, Oklahoma and Arkansas, are led by the Chemical Processing Industry, with more than $24 billion in activity. At the top of the list in terms of spending is a grassroot petrochemical complex by Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) and Saudi Basic Industries Corporation (SABIC) (Riyadh, Saudi Arabia). Located in Portland, Texas, near Corpus Christi, the facility includes an ethylene plant, as well as mono ethylene glycol and polyethylene units. Completion of the 3.96 billion-pound-per-year ethylene plant is planned for fourth-quarter 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed project reports.
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.
In comparison, the North American index recorded a 26% drop in June 2020, as project spending reflected the economic impact of the COVID-19 pandemic and a sharp drop in oil prices. For more information, see July 29, 2020, article - IIR Project Spending Index Drops 26% in June, but Economic Recovery Signs Grow Stronger.
The spending index compares planned industrial project spending for the current year to the previous year, in order to get a measure of growth or contraction in the industrial market. The index, which is available to subscribers to Industrial Info's Global Market Intelligence (GMI) Database, 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.
Click on the image at right for graph showing North American industrial spending growth for this year through June.
In the U.S., all but one of the 12 industries tracked by Industrial Info showed spending increases in the most recent update. Only Oil & Gas Pipelines recorded a decrease.
Industrial Manufacturing led all the Industries in spending growth in the U.S., totaling $146.2 billion, up 77.55% year over year. Construction currently is underway on well over 1,000 Industrial Manufacturing projects in the U.S., led by the Transportation Systems sector in terms of total investment value. In California, construction is underway on a 32-mile segment of a high-speed railway system that will whisk passengers at speeds up to 200 miles per mile between San Francisco and Los Angeles in less than three hours. In June, the federal government finalized an agreement to restore nearly $1 billion in funding for the rail project, which had been revoked by the Trump administration in 2019. However, state funding for the project was not included in a $262 billion budget measure passed late last month by California state legislators, which could affect the project's timeline. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a detailed project report.
The results of a quarterly survey released last month by the National Association of Manufacturers (NAM) indicated capital spending expectations by U.S. manufacturers were the strongest in nearly three years as the economy continued its recovery, with respondents anticipating an average increase of 3.3% over the next 12 months. For more information, see June 28, 2021, article - Survey: U.S. Manufacturers' Capital-Spending Expectations at Nearly 3-Year High.
Economic activity for the 18 industrial sectors followed by the Institute of Supply Management (ISM) (Tempe, Arizona) grew in June, registering the 13th consecutive month of growth after contraction in April 2020. Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a press release that manufacturing "performed well" in June, with demand, consumption and inputs registering growth compared with May.
By market region, overall project spending for all industries was strongest in the U.S. Southwest, amounting to nearly $98 billion, compared with about $60 billion a year earlier. Projects currently under construction in the region, which includes Texas, Louisiana, Oklahoma and Arkansas, are led by the Chemical Processing Industry, with more than $24 billion in activity. At the top of the list in terms of spending is a grassroot petrochemical complex by Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) and Saudi Basic Industries Corporation (SABIC) (Riyadh, Saudi Arabia). Located in Portland, Texas, near Corpus Christi, the facility includes an ethylene plant, as well as mono ethylene glycol and polyethylene units. Completion of the 3.96 billion-pound-per-year ethylene plant is planned for fourth-quarter 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed project reports.
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.
