Capital Investments for Industrial Project Activity Expected to Increase 3% in Midwest Region During 2006

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Researched by Industrial Info Resources (Sugar Land, Texas). Total spending for capital and maintenance activity in the Midwest region during 2006 is expected to increase by 3% over 2005 levels in the industrial sector. During late 2004, projections indicated that there were 396 capital and maintenance projects representing over $16 billion scheduled to kick off during 2005. Over the course of the year, 26 of those projects, roughly 18% of the total investment, fell out due to project cancellations, on hold activity and other delays. Updates conducted during the fourth quarter of 2005 revealed 370 active projects representing investments topping $13.5 billion that kicked off during 2005.

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In comparison, early projections for the region forecasted less spending in 2006 than what was originally forecasted for 2005. However, the latest update of expected project activity indicates that total spending for kicks off during 2006 will surpass actual project spending for 2005 by 3%. In late 2005, early projections for 2006 indicated that there were 425 projects and $15.9 billion scheduled to kick off during 2006. With our latest forecast revealing 386 projects and over $13.9 billion on the books scheduled to start this year. Since the end of 2005, fallout from cancellations and other delays for projects scheduled to begin in 2006 sits at 39 and almost $2 billion. Many reasons exist for project cancellations and delays, but most of the fall out is due to lack of project financing or permitting issues.

The majority of project spending planned to kick off this year is in the Power Industry, followed by Industrial Manufacturing, Pharmaceutical & Biotech, Pulp, Paper & Wood, Metals & Minerals, Food and Beverage, Synthetic Fuels, Petroleum Refining, Transmission (Oil & Gas) and Chemical Processing. Most of the activity in the region is expected to occur in Minnesota, Missouri, Kansas, South Dakota, Iowa, North Dakota and Nebraska.

Click on the image at right to view a chart showing the breakdown of projects by industry.

Industrialinfo.com provides access to thousands of industrial process plants, with management contacts for each through the continuously updated Midwest Online Plant Directory. Click on the image at right for details.

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.