Automotive, Transportation Systems Sectors Dominate First-Quarter 2012 U.S. Industrial Manufacturing Spending

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Researched by Industrial Info Resources (Sugar Land, Texas)--After the trials and tribulations of the last several years, everyone is looking ahead to 2012 to be a year of significant improvement throughout the U.S. Jobs creation and a stable economy are foremost on the country's mind as it approaches the New Year. For the Industrial Manufacturing Industry, improving the overall situation will be the focus for 2012. Spending has been increasing, despite the problems facing the country, and maintaining this momentum will be key for the industry in the coming year. Looking ahead at the proposed spending in the first quarter, the automotive and transportation systems sectors will dominate during the first three months of the year, getting the Industrial Manufacturing Industry off to a positive start in the U.S.

Click on image at right for a breakdown of planned 1Q12 U.S. Industrial Manufacturing Industry spending

All total, Industrial Info is tracking just less than 160 capital and maintenance projects worth an estimated $9.7 billion within the industry that are scheduled to begin construction activity during the first three months of 2012. Within that set of proposed projects, the automotive sector currently accounts for $4.7 billion of that total spending during the quarter, while the transportation systems sector will pony up an additional $3.3 billion worth of project activity.

While not all of the projects currently scheduled to begin construction in the months of January, February or March actually will reach the construction stage, most will, and additional project work will be developed for at least a portion of those projects that are delayed. Most of the larger projects are virtually assured to begin construction on time, thanks to the length of time companies have invested in developing these projects. If only 75% of these projects actually begin construction when they are scheduled to do so, it will still make the first quarter of 2012 a very solid start to the year for the construction industry.

While no individual region in the U.S. will have a banner quarter in terms of total investment, five regions will each see more than $1 billion worth of project activity during that time. The Southeast, Rocky Mountains, Midwest, Mid-Atlantic, and West Coast regions of the U.S. each will see more than $1.1 billion worth of capital or maintenance projects beginning construction during the first three months. The Great Lakes and Northeast regions are nipping at their heels with more than $900 million worth of first-quarter investment, while the Southwest region is expected to begin the year at a slower pace with only $275 million in initial investment.

This start to 2012 should provide a solid base for the Industrial Manufacturing Industry to build on as the year progresses. There will be some significant pressure on the industry to live up to the level of growth it showed in 2011, when it doubled its total investment in the U.S. However, given the fact that there is more than $35 billion worth of investment already planned for the year, it is likely that the industry can improve by the time 2012 is completed. This solid base provides a launching point for the industry as the year passes, and with the resurgence of automotive spending and improvements in other sectors, a $9 billion first quarter is a great start to the year for the Industrial Manufacturing Industry.

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.