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Released August 12, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Project spending in North America was $440.17 billion in July, up 16% from a year earlier, marking the seventh month of consecutive year-over-year increases as the economy continued its climb from last year's COVID-induced downturn. according to the most recent update of the North American Industrial Project Spending Index. Increases were seen in all but three of the 12 industries tracked by Industrial Info.
In the U.S. alone, spending was $345.08 billion, up 18.7%.
In comparison, the North American Index recorded a 19.2% drop in July 2020, as project spending reflected the economic impact of the COVID-19 pandemic and a sharp drop in oil prices.
The spending index compares planned industrial project spending for the current year to the previous year in order to get a measure of growth or contraction in the industrial market. The index, which is available to subscribers to Industrial Info's Global Market Intelligence (GMI) Database, provides spending details by industry and market region, including monthly updates that measure the rate of activity from this year to last year during the same month.
Click on the image at right for graph showing North American industrial spending growth for this year through July.
The Food & Beverage Industry has seen a strong increase in project spending, with a total investment value of $21.96 billion as of July, up $8.79 billion, or nearly 46%, from spending in July 2020.
Randy Godet, Industrial Info's vice president of research for the Food & Beverage Industry, says the outlook for the industry remains positive for the rest of this year and into 2022.
"A lot of what's driving capital expenditures and moving the needle on project spending in the Food & Beverage Industry is alternative products," Godet said during Industrial Info's North American Industrial Market Mid-Year Update on July 21, adding, "I refer to products that are not animal-based."
Many of the alternative product investments are for pilot-scale projects, but big food companies also are acquiring smaller alternative product companies and integrating them into their businesses.
The move into alternative food and beverage products "is the most dramatic change that is going to impact the industry, not just for 2021, but for years to come," Godet said.
The outlook for the agribusiness sector is positive, Godet continued, with capital expenditures driven by demand for biofuels and food, exports to China and grain for animal feed. The outlook for the meat, poultry and fish sector also is strong, but faces challenges due to labor shortages and rising input costs, he said.
Those wishing to view the 2021 North American Industrial Market Outlook Mid-Year Update Webinar on demand can click here.
In the U.S., Industrial Info is tracking $18.62 billion worth of Food & Beverage projects under construction, including three large pet food projects with a combined value of more than $1.5 billion.
Click on the image at right for a graph showing U.S. Food & Beverage project activity in the construction stage, by sector.
Only the Oil & Gas Pipelines, Petroleum Refining, and Chemical Processing industries recorded a decrease in spending in the latest index update.
On the other hand, spending by the Oil & Gas Production Industry totaled $39.95 billion, up 198%. The American Petroleum Institute (API) reported last month that with urban re-openings and the onset of the summer driving season, U.S. petroleum demand rose for a fourth consecutive month and hit more than 20 million barrels per day (BBL/d) in June. Increased refining throughput (16.5 million BBL/d) led to a capacity utilization rate of 91.4% in June, the highest level since December 2019.
Economic activity for the 18 industrial sectors followed by the Institute of Supply Management (ISM) (Tempe, Arizona) grew in July, registering the 14th consecutive month of growth after contraction in April 2020. Industries "continue to struggle to respond to strong demand due to difficulties in hiring and retaining direct labor," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee.
The U.S. economy strengthened further from late May to early July, displaying moderate to robust growth, according to the latest U.S. Federal Reserve Beige Book on economic activity, released July 14. Sectors reporting above-average growth included transportation, travel and tourism, manufacturing, and nonfinancial services. Energy markets improved slightly, and agriculture had mixed results. Supply-side disruptions became more widespread, including shortages of materials and labor, delivery delays, and low inventories of many consumer goods. Strained car inventories resulted in somewhat lower car sales despite steady demand, and home sales rose slightly despite limited supply.
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.
In the U.S. alone, spending was $345.08 billion, up 18.7%.
In comparison, the North American Index recorded a 19.2% drop in July 2020, as project spending reflected the economic impact of the COVID-19 pandemic and a sharp drop in oil prices.
The spending index compares planned industrial project spending for the current year to the previous year in order to get a measure of growth or contraction in the industrial market. The index, which is available to subscribers to Industrial Info's Global Market Intelligence (GMI) Database, provides spending details by industry and market region, including monthly updates that measure the rate of activity from this year to last year during the same month.
The Food & Beverage Industry has seen a strong increase in project spending, with a total investment value of $21.96 billion as of July, up $8.79 billion, or nearly 46%, from spending in July 2020.
Randy Godet, Industrial Info's vice president of research for the Food & Beverage Industry, says the outlook for the industry remains positive for the rest of this year and into 2022.
"A lot of what's driving capital expenditures and moving the needle on project spending in the Food & Beverage Industry is alternative products," Godet said during Industrial Info's North American Industrial Market Mid-Year Update on July 21, adding, "I refer to products that are not animal-based."
Many of the alternative product investments are for pilot-scale projects, but big food companies also are acquiring smaller alternative product companies and integrating them into their businesses.
The move into alternative food and beverage products "is the most dramatic change that is going to impact the industry, not just for 2021, but for years to come," Godet said.
The outlook for the agribusiness sector is positive, Godet continued, with capital expenditures driven by demand for biofuels and food, exports to China and grain for animal feed. The outlook for the meat, poultry and fish sector also is strong, but faces challenges due to labor shortages and rising input costs, he said.
Those wishing to view the 2021 North American Industrial Market Outlook Mid-Year Update Webinar on demand can click here.
In the U.S., Industrial Info is tracking $18.62 billion worth of Food & Beverage projects under construction, including three large pet food projects with a combined value of more than $1.5 billion.
Only the Oil & Gas Pipelines, Petroleum Refining, and Chemical Processing industries recorded a decrease in spending in the latest index update.
On the other hand, spending by the Oil & Gas Production Industry totaled $39.95 billion, up 198%. The American Petroleum Institute (API) reported last month that with urban re-openings and the onset of the summer driving season, U.S. petroleum demand rose for a fourth consecutive month and hit more than 20 million barrels per day (BBL/d) in June. Increased refining throughput (16.5 million BBL/d) led to a capacity utilization rate of 91.4% in June, the highest level since December 2019.
Economic activity for the 18 industrial sectors followed by the Institute of Supply Management (ISM) (Tempe, Arizona) grew in July, registering the 14th consecutive month of growth after contraction in April 2020. Industries "continue to struggle to respond to strong demand due to difficulties in hiring and retaining direct labor," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee.
The U.S. economy strengthened further from late May to early July, displaying moderate to robust growth, according to the latest U.S. Federal Reserve Beige Book on economic activity, released July 14. Sectors reporting above-average growth included transportation, travel and tourism, manufacturing, and nonfinancial services. Energy markets improved slightly, and agriculture had mixed results. Supply-side disruptions became more widespread, including shortages of materials and labor, delivery delays, and low inventories of many consumer goods. Strained car inventories resulted in somewhat lower car sales despite steady demand, and home sales rose slightly despite limited supply.
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.
