Canada Poised to End 2012 on Positive Note, with $31 Billion in Projects Set to Begin Construction

Researched by Industrial Info Resources (Sugar Land, Texas)--Canada has seen 2012 evolve into a very solid year in terms of industrial spending. About $32 billion worth of industrial capital and maintenance projects have begun construction this year in Canada, marking the year as very successful. However, the final quarter of the year is about to begin and it could make or break 2012, depending on how spending shapes up. Industrial Info is currently tracking $31 billion in industrial projects that are scheduled to begin construction during the final quarter of the year which, if they all were to reach that stage, would double the total expenditures for the year in Canada.

During the first three quarters of the year, a trio of industries has dominated spending in Canada. The Oil & Gas Production Industry, with its vast reserves in Alberta, the Power Industry, and the Metals and Minerals Industry between them have accounted for $23.4 billion of the $32 billion in projects that have begun construction this year. Looking ahead to the planned project activity for the final quarter of the year, the Metals and Minerals Industry is expected to take firm control of total spending.

For October, November and December, the Metals and Minerals Industry is currently tracking $15.4 billion in proposed project activity in Canada that is scheduled to begin construction. This spending is driven by a quartet of massive projects that will take place across Canada. The largest of these is a proposed $5 billion grassroot potash mine and mill in Saskatchewan, which is followed by a $3 billion aluminum smelter expansion and modernization in British Columbia; a $2.9 billion second grassroot potash mine and processing plant in Saskatchewan; and a $1.4 billion grassroot gold mine and mill planned for Quebec.

The Power Industry also will play a major role in the spending during the final quarter of the year. About $7.8 billion in power projects are in development and are expected to begin construction activities during that time. In addition, the Oil & Gas Production Industry, always a major player in the country, is expected to add another $4 billion in project starts during the quarter, and the Alternative Fuels Industry will toss in another $2.6 billion in projects. Combined, these four industries, Metals and Minerals, Power, Oil & Gas Production and Alternative Fuels, will account for $30 billion of the $31 billion in projects that have a construction start planned for the fourth quarter.

Two provinces will vie for the top location for total project spending to wrap up 2012. Saskatchewan and Alberta are expected to see almost identical spending totals for the final quarter of the year, with Saskatchewan edging its western sister $8.7 billion to $7.4 billion. British Columbia is expected to see some significant investment as well, with $5.1 billion in projects beginning construction, while Ontario, Newfoundland and Quebec will each top the $2.4 billion mark. Manitoba is expecting $1.6 billion in construction starts.

Spending in Canada has remained strong in this post-recession world. If all of the projects currently scheduled to begin construction in the final quarter of the year were to reach the construction stage, Canada would surpass total spending in the U.S. in 2012. However, that will not happen, as a number of projects will either be delayed due to various issues such as lack of funding or permitting problems, while others will outright be canceled. Regardless, Canada is going to have had a very good year in terms of industrial spending. About $32 billion in project starts though September is nothing to feel bad about, and if only half the proposed projects make it to construction in the fourth quarter, Canada would end the year with more than $48 billion worth of industrial projects that had begun construction throughout 2012, which is a good spending year by anybody's measurement.

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.