Fed: U.S. Sees Production Growth in Manufacturing, Mining and Utilities in Second-Quarter 2017

Researched by Industrial Info Resources (Sugar Land, Texas)--For the second quarter of 2017, U.S. industrial production advanced at an annual rate of 4.7%, primarily due to strong increases in the mining and utility sectors, according to a report from the Board of Governors of the Federal Reserve. In June alone, total industrial production was 2% above its level in June 2016, and at more than 105% of its June 2012 average. Industrial Info is tracking $1.44 billion in Power Generation, Metals & Minerals and Industrial Manufacturing projects that began construction in June 2017.

U.S. manufacturing output rose at an annual rate of 1.4% in the second quarter, a notch slower than in the first quarter, but 0.4% growth in June alone marked a fifth consecutive monthly increase, according to the Federal Reserve. Among the manufacturing projects to begin construction last month were two refurbishments at plants that manufacture steel blanks, which are unfinished slabs of metal that are used in automobile production: ArcelorMittal's (NYSE:MT) (Luxembourg, Luxembourg) $83 million renovation in Detroit, Michigan, and Mubea Incorporated's (Florence, Kentucky) $73.3 million plant expansion in Florence, Kentucky.

ArcelorMittal's project involves modifications and renovations at a 317,000-square-foot, currently vacated building, while Mubea's project involves constructing two buildings and a cold-rolling mill to boost capacity. For more information, see Industrial Info's reports on the ArcelorMittal and Mubea projects.

The Federal Reserve's index for mining recorded a gain of more than 1.5% in June, which marks a second consecutive month of growth, with advances in oil and gas extraction, coal mining, and drilling and support activities. Production from mines was 9.9% higher than its year-earlier level, but 9% below its peak in December 2014. One example is Titan Mining Corporation (Vancouver, British Columbia), which made strides on the $12.4 million restart and revamp of its Empire State Zinc Mine in Gouverneur, New York.

Titan plans to overhaul the existing sublevel mining facility to produce 60 million pounds per year of zinc, in preparation of a $5 million second phase, set to kick off in first-quarter 2018, which would add 30 million pounds per year of production. For more information, see Industrial Info's project reports on Phase I and Phase II of the Empire State Zinc Mine.

In April, Rosebud Mining Company (Kittanning, Pennsylvania) began site preparation for an $8 million metallurgical coal mine in Cresson, Pennsylvania. Rosebud plans to construct a 200,000-ton-per-year underground mine that would produce coal for the metals sector for 35 years or more. It eventually would be expandable to 600,000 to 1.5 million tons per year. For more information, see Industrial Info's project report.

Although production from utilities grew in the second quarter when compared with the same period last year, a year-over-year comparison for June alone showed no significant change, according to the Federal Reserve. Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) saw two solar plants begin construction in the second quarter: the $45 million Phase II and $45 million Phase III solar farm in Cumberland, Virginia. Each phase is expected to use more than 88,200 photovoltaic panels to produce about 20 megawatts. For more information, see Industrial Info's project reports on Phase II and Phase III.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.