A Look Ahead: Northeast Region Claims $94 Billion Investment for 433 Projects in Active Planning

---

Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--In terms of future industrial capital investment, the U.S. Northeast region has 433 active projects representing a total investment value (TIV) of $94 billion. The capital projects in play range from $750 million all the way up to $15 billion. All currently have a scheduled kickoff date from October 2010 through August 2012 (source: Industrial Info's North American Industrial Database).

Click on image at right for a breakdown by industry of planned projects in the U.S. Northeast region.

When just considering the numbers, the average project TIV translates into $217 million, but that is not a true reflection of what the actual project average is for the region. The top two projects alone total $27 billion, as discussed below, and when those two atypical projects are taken out of play, the project average becomes a more reasonable, although still respectable, $15.5 million.

The Power Industry is by far the leader in terms of project investment, accounting for 72% or $68 billion spread out over 147 projects. The largest of these is the aforementioned $15 billion whopper that PPL Generation LLC (Allentown, Pennsylvania) is planning in Berwick, Pennsylvania, for the construction of a 1,600-megawatt (MW) nuclear unit in 2013. The other power project to light up area spending is another nuclear unit by PSEG Nuclear LLC (Hancocks Bridge, New Jersey). The company is forecasting a $12 billion investment for the 1,200-MW Hope Creek nuclear #2 addition with a 2015 kickoff date.

With $7.7 billion and 51 projects, the Industrial Manufacturing Industry continues to establish its solidarity in the region. The group's $151 million-per-project average in the Northeast gets a big boost from one huge project in the form of a $3.8 billion subway project in New York City. MTA Capital Construction (New York, New York) is evaluating the Phase II project of the 2nd Avenue Subway, adding 2.25 miles of subway line and four new stations. If it proceeds, the project is not expected to get under way before 2015.

The remaining projects are scattered across multiple industries, including Alternative Fuels, with 16 projects representing a $3.4 billion investment. The largest of these is a $1.4 billion grassroot coal gasification and CO2-sequestration facility in Linden, New Jersey. SCS Energy LLC (Concord, Massachusetts) has chosen the former DuPont site and is currently in permitting for the project, which has a current kickoff date of early 2012.

The Pharmaceutical-Biotech Industry continues its attraction to the area with 39 future projects set to deliver a $1.9 billion investment. The largest of these remains Israeli generics giant Teva's (NASDAQ:TEVA) plans for a $300 million distribution center in Warrington, Pennsylvania. The 1.6 million-square-foot project will be built on a 156-acre site. Scheduled to begin construction in late 2011, the facility will serve as the new domestic headquarters for the company and will handle drug distribution.

From a geographic standpoint, New Jersey is leading all of the region's states with 69 projects delivering $31.6 billion in construction investment. Pennsylvania is not far behind in terms of dollars, with $30 billion divided over 183 projects. New York has $29 billion and 166 projects, and Delaware is on the board with $3.5 billion and 15 projects.

View Plant Profile - 1080592 1012731 1070302 3002369 1090950
View Project Report - 12004306 7002381 300008565 200007535

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.