First Quarter 2005 Industrial Maintenance Expenditures for U.S. Southeast Region Projected to Reach $268 Million

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Industrial manufacturers are beginning the process of reviewing and selecting contractors and suppliers for upcoming maintenance shutdowns scheduled to take place in the first quarter of 2005. Industrialinfo.com has identified 71 scheduled maintenance projects at industrial plants in Alabama, Florida, Georgia, Mississippi, and Tennessee that will take place between January and March 2005.

Click on the link at right to view the 1Q05 U.S. Southeast Region Maintenance Shutdown Spending by Industry Chart.

Combined, these projects have an estimated value of over $268 million, which is slightly higher than the $258 million in maintenance expenditures that occurred in the first quarter of 2004.

In 2005, maintenance expenditures for the month of January will be $15 million and include a $9 million shutdown at a steel minimill. In February, fourteen maintenance shutdowns have been scheduled, with an investment value of $45 million. More than 78% (or $209 million) of all maintenance expenditures for the quarter will occur during March.

In terms of number of projects and investment value, the Power industry leads all industries, with 45 outages, worth $196 million, respectively. Among them, is a $10 million, four-week long outage at a nuclear station owned by Tennessee Valley Authority (TVA). The Metals and Minerals industry follows with twelve projects valued at $31 million. The Chemical Processing industry along with the Pulp, Paper and Wood industry each plan six shutdowns that have a combined value of $23 million.

Spending by state is as follows: Alabama ($58 million), Florida ($94 million), Georgia ($51 million), Mississippi ($36 million) and Tennessee ($29 million). One of the largest shutdowns will occur in March at a Mississippi petroleum refinery, with an investment value of $15 million.

2005 spending estimates, compared to other market regions, places the Southeast region third behind the Southwest ($393 million) and the Great Lakes ($300 million) regions. Over the next couple of years, maintenance activity is expected to remain strong as capacity utilization rates increase with productivity.