GMI North American 24-Month Kickoff Outlook Valued at Over $1 Trillion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info's Global Market Intelligence (GMI) Integrated Platform is tracking more than $1.17 trillion in projects this month in North America that are slated to kick off construction in the next 24 months, a 1% increase from the 24-month September outlook of $1.16 trillion.

Comprising this $1.17 trillion are more than 17,000 projects in the U.S. and Canada, which are scheduled to start construction from October of this year through September 2019. These are strong economic indicators for investors, as confidence for project spending continues to hold at steady levels.

Click on the image at right for a graph showing the October North American 24-month kickoff outlook by industry.

By total investment value (TIV), the Power Industry is the leading spender, with more than $305 billion in planned kickoffs, followed by Oil & Gas Production at $223 billion, and Industrial Manufacturing at $159 billion. Not all of the projects will kick off as planned; Industrial Info ranks the probability of each project moving forward as planned in either high, medium, or low categories.

Project spending looks to be concentrated geographically in the Southwest market region of the United States at $272 billion, followed closely by the market region of Western Canada at more than $243 billion.

Click the image at right for a table showing the October North American 24-month kickoff outlook by market region.

Not surprisingly, the lion's share of the projects in the Southwest region will occur in Texas, projected at over $179 billion, followed by Louisiana at $69 billion. In the Western Canada region, the Alberta province will see a tremendous project spend of $115 billion, trailed by British Columbia at $96 billion.

One of the largest potential kickoffs involves a $9.4 billion grassroot petrochemicals complex by Formosa Plastics USA (Point Comfort, Texas) in St. James Parish, Louisiana. Formosa tentatively expects to make an investment decision on the project by January 2018. Phase 1 of the complex would include a 2.6 billion-pound-per-year ethylene unit and several downstream derivative projects. Construction would kick off in September 2019, with completion in late 2022. For more information, see Industrial Info's project report.

Timing of the kickoffs will begin slowly in October 2017, before climbing to a peak in October 2018, and a leveling off as the 24-months end in September 2019.

Click on the image at right for a graph showing project spending by kickoff date.

Capital versus maintenance spending for the 24-month October outlook remains at a consistent ratio of 98% to 2%, with little change from September.

Click on the image at right for a graph showing project spend by budget category.

Of the $1.15 trillion TIV planned for capital kickoffs over the next 24 months, $96 billion (8%) of the spending has been approved and is moving forward in the funding, engineering and construction phases, while $1.05 trillion (92%) remains in the proposal phase.

This 24-month kickoff outlook for North America is quite promising, with projected spending coming in at a total of over $1 trillion.

• The value of activity currently in the construction phase is $440 billion in North America. Of this, $349 billion is in the U.S. and $90 billion is in Canada.
• The top three industries leading construction-phase projects this month are Industrial Manufacturing ($117 billion), Power ($110 billion) and Oil & Gas Production ($63 billion).

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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 https://www.industrialinfo.com.