Released July 12, 2010 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--It has been no secret that the sectors that make up the Industrial Manufacturing Industry have been suffering throughout the recession in the United States. Spending has been trending downward as companies have focused on consolidation rather than expansion during the past 18 months. However, as the national economy has begun recovering, companies are once again beginning to invest money in expansion rather than consolidation. During the first half of 2010, 249 capital and maintenance projects worth an estimated $9.7 billion began construction within the Industrial Manufacturing Industry in the U.S., a significant reduction from a year ago, when $17 billion worth of projects began construction between January and June 2009.
Click on image at right for details of Industrial Manufacturing project spending in the first half of 2010.
However, despite the reduced spending totals, more and more companies are beginning to explore expansion options. In the second half of 2010, $12.4 billion in capital and maintenance projects are currently scheduled to begin construction within the industry, with more projects being planned each and every week. While the year-end spending totals will not meet or exceed the amount of spending the industry was seeing only two years ago, it is the beginning of a slow recovery period that will take some time to complete. Looking ahead to what projects are already scheduled to begin construction in 2011 in the Industrial Manufacturing Industry, we see $25.2 billion already on the books, a number that will only increase as the overall economic situation continues to improve.
While there have been a number of large projects that have contributed to the spending within the industry during the first half of 2010, some key sectors have emerged as leading players. Chief among the sectors that are actively spending money are the solar panel and equipment sector and the burgeoning lithium-ion battery business. Recent governmental mandates to develop more fuel-efficient methods of transportation and power generation have contributed heavily to this increased spending trend. Companies have responded to the call for this increased efficiency by opening their bank accounts and constructing new plants to manufacture the parts as required.
The lithium-ion battery business appears to be especially well situated for additional spending and plant activity with its ability to support the movement for electric vehicles. With the introduction of at least two electric vehicles scheduled later this year and a number of others in development for production within the next two years, the need for this type of battery will only increase as time progresses. On the solar side of the equation, the industry is dealing with a technology that has not taken off as rapidly as most would prefer, but is gaining wider acceptance as an alternative power source and a potential vast resource for the future.
Some of the key areas of the U.S. that saw significant spending during the first six months of the year include the Southwest region of the country, which consists of the states of Texas, Louisiana, Oklahoma and Arkansas, which saw more than $4 billion worth of capital and maintenance projects begin construction. The Great Lakes region, which includes the states of Michigan, Ohio, Illinois, Indiana, Kentucky and Wisconsin, has suffered greatly during the recession thanks to the devastated automotive sector. However, the region saw some significant spending during these months, with $1.7 billion in projects starting construction.
Overall, the spending totals for the first half of 2010 were certainly decreased when compared to past years. However, all signs point to significant improvement in spending totals in the coming years. The recession is winding down and the automotive sector, one of the key traditional major spenders, is beginning to invest money in the U.S. once again. Provided things keep moving in the direction they are currently heading--and there are no indications that things will slow back down--we can expect spending during the latter half of 2010 and the first half of 2011 to be much improved. Hopefully, by the end of the summer of 2011, the recession will be fully completed, spending will return to its traditional norms or even improve, and many of the hundreds of thousands of jobs lost in the past 18 months will be regained.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.
Click on image at right for details of Industrial Manufacturing project spending in the first half of 2010.However, despite the reduced spending totals, more and more companies are beginning to explore expansion options. In the second half of 2010, $12.4 billion in capital and maintenance projects are currently scheduled to begin construction within the industry, with more projects being planned each and every week. While the year-end spending totals will not meet or exceed the amount of spending the industry was seeing only two years ago, it is the beginning of a slow recovery period that will take some time to complete. Looking ahead to what projects are already scheduled to begin construction in 2011 in the Industrial Manufacturing Industry, we see $25.2 billion already on the books, a number that will only increase as the overall economic situation continues to improve.
While there have been a number of large projects that have contributed to the spending within the industry during the first half of 2010, some key sectors have emerged as leading players. Chief among the sectors that are actively spending money are the solar panel and equipment sector and the burgeoning lithium-ion battery business. Recent governmental mandates to develop more fuel-efficient methods of transportation and power generation have contributed heavily to this increased spending trend. Companies have responded to the call for this increased efficiency by opening their bank accounts and constructing new plants to manufacture the parts as required.
The lithium-ion battery business appears to be especially well situated for additional spending and plant activity with its ability to support the movement for electric vehicles. With the introduction of at least two electric vehicles scheduled later this year and a number of others in development for production within the next two years, the need for this type of battery will only increase as time progresses. On the solar side of the equation, the industry is dealing with a technology that has not taken off as rapidly as most would prefer, but is gaining wider acceptance as an alternative power source and a potential vast resource for the future.
Some of the key areas of the U.S. that saw significant spending during the first six months of the year include the Southwest region of the country, which consists of the states of Texas, Louisiana, Oklahoma and Arkansas, which saw more than $4 billion worth of capital and maintenance projects begin construction. The Great Lakes region, which includes the states of Michigan, Ohio, Illinois, Indiana, Kentucky and Wisconsin, has suffered greatly during the recession thanks to the devastated automotive sector. However, the region saw some significant spending during these months, with $1.7 billion in projects starting construction.
Overall, the spending totals for the first half of 2010 were certainly decreased when compared to past years. However, all signs point to significant improvement in spending totals in the coming years. The recession is winding down and the automotive sector, one of the key traditional major spenders, is beginning to invest money in the U.S. once again. Provided things keep moving in the direction they are currently heading--and there are no indications that things will slow back down--we can expect spending during the latter half of 2010 and the first half of 2011 to be much improved. Hopefully, by the end of the summer of 2011, the recession will be fully completed, spending will return to its traditional norms or even improve, and many of the hundreds of thousands of jobs lost in the past 18 months will be regained.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.
