Adjusted Forecast Shows 20% Increase in North American Metals & Minerals Industry Project Spending for 2007

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Researched by Industrial Info Resources (Sugar Land, Texas)--The magnitude and quantity of project spending in the Metals & Minerals Industry has been on an upward trend in North America for the past several years. Tremendous engineering and construction activity is underway in 2007, putting a strain on equipment and service providers, delaying project implementation and increasing costs across the country. Early projections based on planned projects indicate that 2008 will exceed 2007 in project spending. Almost $29 billion of the industry’s project spending has already started or is on track to begin construction in 2007. Based on Industrial Info’s confidence factor for the Metals & Minerals Industry, 80.4% (Reference 2007 Industrial Outlook) project spending for 2007 should come in around $23 billion. This is a 20% increase compared with the original forecast for 2007.

Looking ahead, Industrial Info has already identified almost $34 billion in major projects scheduled to begin construction in 2008.

Click on the image at right to view a chart showing the breakdown of planned 2008 kick offs for the North American Metals & Minerals Industry

Joe Govreau, VP Metals & Minerals Industry for Industrial Info, said: “Several sectors within the Metals & Minerals Industry have risen to the top, driving this increase in project spending. Right now, nontraditional sectors, such as titanium, molybdenum, polysilicon and uranium, as well as pre-eminent leading sectors like steel, copper and cement are leading the pack as far as project spending is concerned.” It’s not misleading to say that because of the market conditions, all producers of titanium, polysilicon, uranium, copper and molybdenum are planning expansions or new facilities to meet growing demand.

Titanium producers, for example, are planning more than $1 billion to expand and build titanium sponge production plants in the U.S. For details see related April 17, 2007, article - Titanium Metals Producers Line Up Expansions to Meet Growing Demand

Even if the confidence factor decreases significantly, 2008 is on track to outpace 2007 spending and to come in around $24 billion.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.