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Released January 17, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The North American Metals & Minerals Industry experienced a significant increase in project starts in 2021, when compared with 2020. About $27 billion worth of projects began construction in 2021, up from $16.6 billion worth of projects in 2020, according to Industrial Info's North American Project Spending Index. That's a 63% increase in the value of projects beginning construction during the year.
"Most of the upsurge in activity can be attributed to projects in Canada, although the U.S. and Mexico also experienced an increase in activity to a lesser extent," said Joe Govreau, Industrial Info's VP Research for Metals & Minerals.
All North American market regions experienced an increase in activity in 2021, with the exception of the Great Lakes region, which dropped from $4.5 billion in 2020 to $2 billion in 2021.
Click on the image at right for a graph comparing Metals & Minerals construction starts in 2020 and 2021.
Project activity in the U.S. increased 8% in 2021, rising to $12.8 billion from $11.8 billion in 2020. The top four market regions for project activity in the U.S. in 2021 were Southwest with $2.3 billion, the Southeast with $2.2 billion, the Mid-Atlantic with $2.1 billion and the Great Lakes with $2 billion.
In Canada, there was a much more sizable jump in activity, from $4.2 billion in 2020 to $13.3 billion in 2021. Part of the Canadian increase can be attributed to several large-scale mining projects, which got underway last year, such as the BHP Group's (Melbourne, Australia) Jansen Potash project in Saskatchewan, Syncrude Canada Limited's (Fort McMurray, Alberta) Mildred Lake North (MLX-West) Oil Sands Mine Extension project in Alberta, and Agnico-Eagle's (NYSE:AEM) (Toronto, Ontario) Odyssey Mine Shaft Development in Quebec. The Western Canada market region, which includes Alberta, British Colombia, Northwest Territories, Nunavut, Manitoba, Saskatchewan and Yukon, was the largest region in North America, with $8.7 billion worth of projects beginning construction in 2021.
Activity in Mexico increased from $638 million in 2020 to $1.1 billion in 2021.
"The increase in activity in 2021 can be attributed to a number of factors including restarts of projects delayed during 2020 because of the pandemic, as well as increased economic stimulus, improving demand for steel, and energy transition and decarbonization efforts which are increasing demand for metals and minerals and spurring on capital expenditures," Govreau said.
Govreau will present an outlook for 2022-23 during Industrial Info's U.S. & Canada Industrial Market Outlook virtual webinar, which will be held January 19-20. Sign up for this free event here.
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.
"Most of the upsurge in activity can be attributed to projects in Canada, although the U.S. and Mexico also experienced an increase in activity to a lesser extent," said Joe Govreau, Industrial Info's VP Research for Metals & Minerals.
All North American market regions experienced an increase in activity in 2021, with the exception of the Great Lakes region, which dropped from $4.5 billion in 2020 to $2 billion in 2021.
Project activity in the U.S. increased 8% in 2021, rising to $12.8 billion from $11.8 billion in 2020. The top four market regions for project activity in the U.S. in 2021 were Southwest with $2.3 billion, the Southeast with $2.2 billion, the Mid-Atlantic with $2.1 billion and the Great Lakes with $2 billion.
In Canada, there was a much more sizable jump in activity, from $4.2 billion in 2020 to $13.3 billion in 2021. Part of the Canadian increase can be attributed to several large-scale mining projects, which got underway last year, such as the BHP Group's (Melbourne, Australia) Jansen Potash project in Saskatchewan, Syncrude Canada Limited's (Fort McMurray, Alberta) Mildred Lake North (MLX-West) Oil Sands Mine Extension project in Alberta, and Agnico-Eagle's (NYSE:AEM) (Toronto, Ontario) Odyssey Mine Shaft Development in Quebec. The Western Canada market region, which includes Alberta, British Colombia, Northwest Territories, Nunavut, Manitoba, Saskatchewan and Yukon, was the largest region in North America, with $8.7 billion worth of projects beginning construction in 2021.
Activity in Mexico increased from $638 million in 2020 to $1.1 billion in 2021.
"The increase in activity in 2021 can be attributed to a number of factors including restarts of projects delayed during 2020 because of the pandemic, as well as increased economic stimulus, improving demand for steel, and energy transition and decarbonization efforts which are increasing demand for metals and minerals and spurring on capital expenditures," Govreau said.
Govreau will present an outlook for 2022-23 during Industrial Info's U.S. & Canada Industrial Market Outlook virtual webinar, which will be held January 19-20. Sign up for this free event here.
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.
