Canada Has $7 Billion in Grassroot Projects Scheduled to Begin Construction During Third Quarter of 2012

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Researched by Industrial Info Resources (Sugar Land, Texas)--Grassroot project activity has been picking up in Canada during 2012. In 2011, only 81 grassroot projects began construction activities, with a total estimated value of $12.1 billion. But during the first and second quarter of this year, there have been a combined total of 64 grassroot projects that have begun, or are scheduled to begin, construction activities, with a total estimated value of $14.6 billion, which surpasses 2011's total. Looking ahead at the third quarter, Industrial Info Resources is tracking an additional 83 grassroot projects worth $7 billion that are expected to begin construction activities.

Click on image at right for a breakdown by industry of active Canadian grassroot projects.

Throughout 2011 and during the first two quarters of 2012, two industries have been the prime mover when it comes to grassroot project activity in Canada: the Power Industry and the Oil and Gas Production Industry. However, in the coming quarter, things appear to have shifted somewhat. The Power Industry is still expected to be the largest contributor of grassroot projects for the quarter, with 33 projects worth an estimated $2 billion scheduled to begin construction; however, grassroot spending has slowed down in the Oil and Gas Production Industry.

Instead, the Industrial Manufacturing, Alternative Fuels and Oil & Gas Transmission industries have stepped up grassroot project efforts in Canada. The Industrial Manufacturing Industry has a single major project worth $1.4 billion scheduled to begin construction during the months of July, August or September, while the Alternative Fuels Industry is looking at 20 projects worth an estimated $1.3 billion that will begin construction during that time period. The Oil and Gas Transmission Industry is expected to add another 14 projects worth $1 billion to the total, while the Oil and Gas Production Industry, which has been a major player over the last 18 months, will see only three projects worth $242 million start construction.

The ultimate location of these projects in Canada has remained relatively similar to where the grassroot project activity has occurred over the last 18 months. Alberta will see the most investment, while Ontario will see the most activity. Alberta is expected to have 24 grassroot projects worth $2.2 billion begin construction activities, while Ontario will have another 36 projects worth $1.8 billion start construction activities.

British Columbia, which was the home to the second-largest concentration of grassroot projects behind Alberta throughout 2011, also will see some significant activity in the third quarter. Currently, there are 10 grassroot projects worth an estimated $1.9 billion scheduled to begin construction in that province during the coming quarter. Saskatchewan also will see some improved activity, with nine projects worth an estimated $869 million scheduled to begin construction, while Quebec will add another pair of projects worth $104 million.

With only two quarters completed come the end of this month, 2012 already has surpassed the grassroot project activity of all of 2011. After that, the additional grassroot spending that will be seen in the third and fourth quarters is just icing on the cake for Canada. Grassroot projects mean a significant number of construction jobs over a period of several months and a fairly large number of permanent jobs once the facilities are completed. Hopefully, the increased level of grassroot activity will continue through the fourth quarter of this year and all of 2013.

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.