Big Tech Firms, Auto Suppliers Among U.S. Manufacturers Halting Projects Amid COVID-19 Uncertainty

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Researched by Industrial Info Resources (Sugar Land, Texas)--Along with education, health care, retail and virtually every other subset of the U.S. economy, the Industrial Manufacturing Industry is reinventing itself on the fly amid the COVID-19 pandemic, with a stronger emphasis on digital technology and remote operations. But some of America's most iconic sectors, such as big tech and automotive, remain uncertain as to when, or if, they will reopen some of their shuttered facilities. Industrial Info is tracking nearly $2 billion worth of projects in the U.S. Industrial Manufacturing Industry that have been placed on hold or outright cancelled for reasons related to COVID-19.

Click on the image at right for a graph detailing the investment values for U.S. Industrial Manufacturing Industry projects to be placed on hold or cancelled due to the pandemic, by industry sector.

One of the highest-valued U.S. projects to be placed on hold is Facebook Incorporated's (NASDAQ:FB) (Menlo Park, California) $750 million Project Starbelt in Huntsville, Alabama, a large-scale data center that began construction in September 2018. Once seen as a boon to Alabama's emerging tech sector, Project Starbelt had its completion date pushed back from this August to August 2022, before it was placed on hold indefinitely. For more information, see Industrial Info's project report.

The U.S. Automotive Industry has seen its share of ups and downs over the past decade, and is facing a new challenge from COVID-19. Nearly every automotive plant in North America has been forced to temporarily close, at one point or another, since the outbreak. While many companies have reopened at least some of their plants and are gradually upping production, they still are seeing high absenteeism rates among employees who have been diagnosed with the virus, or have been exposed to it and are self-quarantining. Equipment and material suppliers are finding it especially difficult, as they typically have limited financial resources to reopen assembly lines, according to Bloomberg.

Two auto-parts manufacturing projects in states known for their automotive markets are facing indefinite delays: Kostal Kontakt Systeme Incorporated's (Rochester Hills, Michigan) $57.8 million first phase of an electronic component-manufacturing plant in Rochester Hills, which had been set to begin construction in March. Grupo Antolin-Irausa S.A. (Burgos, Spain) was performing an economic evaluation for a proposed $5 million expansion of its interior auto parts plant in Nashville, Illinois, but it is unknown when the company will resume its early-stage work. For more information, see Industrial Info's project reports on the electronic component and interior parts plants.

Other facilities that manufacture a variety of industrial products have frozen proposed expansion projects. Klöckner Pentaplast Group (London, England) was preparing to kick off a $25 million expansion of its plastic film plant in Gordonsville, Virginia, this summer to service the pharmaceutical and medical-device markets, while Finzer Roller (Des Plaines, Illinois) already had started construction on a $10 million rubber roller plant in Kernersville, North Carolina. It is not known when, or if, either of these projects will restart. For more information, see Industrial Info's reports on the plastic film and rubber roller projects.

Pandemic Shocks Ripple Through Housing, University Construction
The U.S. housing market is enjoying some of its strongest numbers in years, with new-home sales surging and sellers of existing homes benefiting from hefty price tags. Nonetheless, some companies that produce materials commonly used in home construction have been forced to delay or cancel capital-spending projects amid the pandemic. Carter Lumber Company (Kent, Ohio) cancelled a $6 million home-building materials facility in Hanover, Pennsylvania, which was first announced about one year ago after the company agreed to re-purpose a former packaging facility. For more information, see Industrial Info's project report.

Home-building material projects recently placed on hold include KCC Manufacturing's (Louisville, Kentucky) estimated $50 million HVAC equipment manufacturing plant in Louisville, which is also designed to produce roofing materials, and All Weather Insulated Panels Incorporated's (Vacaville, California) $24 million insulated metal panel plant in East Stroudsburg, Pennsylvania, to serve customers in the U.S. Northeast. For more information, see Industrial Info's reports on the HVAC equipment and insulated metal panel projects.

The ripple effects of COVID-19 on industrial projects also can be seen at universities across the U.S., which often have their own on-campus power-generation facilities. The output from these mini-power plants likely will be much lower when compared with last year, as many campuses are finding ways to restart the academic year while classrooms remain closed due to the pandemic. The University of Connecticut is delaying indefinitely a $65 million supplemental utility plant at its Storrs Mansfield campus, designed to support new scientific study facilities. For more information, see Industrial Info's project report.

The State University of New York has outright cancelled a $7.4 million solar array project at its Erie Community College campus in Orchard Park, New York, which would have accommodated a series of ground-mounted photovoltaic panels designed to generate 4 megawatts (MW) for the campus. For more information, see Industrial Info's project report.

Industrial Info is pleased to present a complimentary webinar on the 2020-21 spending outlook for the North American Industrial Manufacturing Industry. The webinar will be presented Wednesday, September 9, at 10 a.m. CDT (11 a.m. EDT). Click here for more information.

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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.