$40 Billion in Grassroot Projects Scheduled to Begin Construction in U.S. During Third-Quarter 2012

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Researched by Industrial Info Resources (Sugar Land, Texas)--Grassroot project activity is, and has always been, one of the building blocks for industrial expansion in the U.S. Grassroot plants provide an influx of capital to the city or town where they will be built and are a solid and proven method of job creation, both on the construction side of the coin and on a more permanent basis, once the facility is completed. In addition, an analysis of where grassroot project activity is the heaviest can provide some insight into where expansion is likely to occur. Looking ahead at the third quarter of the year, $40 billion worth of grassroot industrial project activity is currently scheduled to begin construction in the U.S., which should lead to billions of dollars in additional investment.

Two regions of the country are expected to see the heaviest concentration of grassroot project spending in the coming quarter: the Great Lakes region and the Southwest region. Industrial Info Resources is tracking 34 grassroot projects worth an estimated $10.4 billion that are scheduled to begin construction activities in the Great Lakes region during the third quarter, and an additional 58 projects worth $8.9 billion that are expected to do the same in the Southwest region. These two regions will account for nearly half the total investment in grassroot projects for the quarter.

Three regions are expected to see in excess of $4 billion of grassroot investment during the quarter, while another region should see at least $3 billion in activity. The Rocky Mountains region, the Southeast region and the West Coast region will each see more than $4 billion in total grassroot project activity for the quarter, while the Midwest region will contribute another $3 billion. Those four regions will account for an additional 154 grassroot projects in the coming months.

The Alternative Fuels Industry and the Power Industry will be the driving forces in the grassroot activity in the third quarter. The Alternative Fuels Industry is expected to see 67 grassroot projects worth an estimated $17.3 billion begin construction activity, while the Power Industry will add 43 grassroot projects worth an estimated $8.9 billion. The Oil & Gas Transmission Industry is expected to see 62 projects worth an estimated $3.8 billion begin construction activities as well.

Some other industries making significant grassroot contributions in the coming quarter include the Metals & Minerals Industry, with 24 projects worth $2.3 billion scheduled to begin construction; the Food & Beverage Industry, with 49 projects worth $2 billion; and a trio of industries that are each scheduled to see in excess of $1 billion in grassroot project activity for the quarter: the Oil & Gas Production Industry, the Industrial Manufacturing Industry, and the Pharmaceutical & Biotech Industry.

This grassroot project activity will potentially lead to thousands of permanent jobs across the U.S. and will certainly create tens of thousands of temporary construction jobs in the coming months. In addition, the cities and towns that play host to these facilities will see additional benefits from the money these new employees spend locally on housing, food, drink and other necessities. Over the long term, these new plants can lead to additional plants being located in the same general area, which will be even more good news for the cities and towns involved. Hopefully this level of grassroot investment can be maintained in the U.S. The more grassroot investment made now will mean greater opportunity for growth and prosperity in the future, which is certainly something this country could use more of in the coming months.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.