Indiana Industrial Project Construction Remains Strong Going into 4Q06

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Researched by Industrial Info Resources (Sugar Land, Texas). At the end of 2005, Industrial Info was tracking 148 projects representing $2.9 billion within the state of Indiana with planned construction starts in 2006. Of that original set of projects, 32 were deferred, cancelled or put on hold. A breakdown of project fallout includes nineteen projects delayed or deferred beyond 2006, an additional four projects put on hold, totaling $38 million, and nine projects cancelled, totaling $653 million. This leaves 136 projects worth approximately $2.6 billion of the original project set either under construction or scheduled to begin construction in 2006. Around 42 of these projects totaling $194 million have started and completed construction in 2006. Most of the projects already completed this year are major maintenance shutdowns that occurred during the summer. However, a few large capital projects, such as a $40 million electrostatic precipitator unit addition in Cayuga, Indiana, for Cinergy/PSI Energy, are nearing completion after beginning construction early this year.

Research through September 2006, has identified 83 additional industrial projects in Indiana increasing active projects to 177 in the works for 2006, totaling almost $5 billion in total investment value (TIV).

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

The biggest project on the books in Indiana for a 2006 construction start is Honda of America Manufacturing Incorporated's (Torrance, California) new grassroot, $550 million assembly plant. Site preparation on the one million square foot plant, which is to be built on 1,700 acres near Greensburg, Indiana, is scheduled to begin this month.

One example of Project Fallout in Indiana for 2006, is Alliance Coal’s Gibson County South project near Princeton, Indiana. Construction on the $80 million Gibson South project was initially planned to begin during the spring 2006, but permitting issues postponed the project. The underground coal mine received a draft permit from the Indiana Division of Reclamation, which paves the way for construction to start after a 33-day public comment period that is due to be complete at the end of October. Construction of the project will not start until early 2007 at the earliest. Capital approval for the project still has to be prioritized between four other major new mines that the company is developing in West Virginia, Pennsylvania, and Kentucky. Coal market movement will play a prime factor in determining which of these major projects gets the go ahead first.

For 2007, there is a different mix of projects on the books with the Power Industry, Petroleum Refining and Alternative Fuels taking larger shares of project spending. Fewer projects, 99 in all, totaling $5.4 billion, are currently being evaluated for 2007. The Power Industry jumps to the top for planned project spending in 2007. This is part of more than 3,800 megawatts of new generation planned in the state. See July 6, 2006 news article for details - Indiana Powers the Future with More Than 3,800 Megawatts of New Generation

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.