Industrial Project Fallout Currently at 35% for California in 2007

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Researched by Industrial Info Resources (Sugar Land, Texas) -- Industrial project spending in California for 2007 is currently tallying up to more than $10 billion from 251 major projects. Projects are classified in twelve vertical markets: Power, Oil & Gas Terminals, Oil & Gas Transmission, Oil & Gas Production, Alternative Fuels, Petroleum Refining, Chemical Processing, Metals & Minerals, Pulp Paper & Wood, Food & Beverage, and Industrial Manufacturing.

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

Late last year, Industrial Info was tracking close to 200 industrial projects totaling about $15.5 billion in California. Even though the total number of projects has increased this year, the value of projects commencing construction in 2007 has decreased representing Project Fallout of 34%. Project Fallout, represented by projects that have been cancelled, deferred or put on hold, measures the percentage of project spending that has been removed from the original forecast. For example, one of the projects that falls into this category, a project that was put on hold this year, is a $125 million carbon black manufacturing plant planned by the United Carbon Corporation (Woodland Hills, California). In the works since 2002, it seems that financing is difficult to come by for the company. By keeping track of projects as they develop throughout the year, Industrial Info is able to keep track of which projects are moving forward and which projects have been canceled, postponed, or placed on hold.

Forty-five projects totaling $153 million have started construction this year and have already completed construction. Seventy-eight percent of this group are maintenance shutdown and turnaround projects that were performed earlier in the year. One of the larger projects that falls into this category is a $20 million maintenance turnaround that was performed at the Golden Eagle Refinery in Martinez, California, which is owned by Tesoro Petroleum Corporation (San Antonio, Texas).

In addition to the completed projects, 93 projects totaling $4.1 billion have been approved and are either scheduled to begin construction or have already started construction in 2007. One of the larger projects currently under construction in California is a $73 million automotive parts manufacturing plant in Stockton, California for Kyoho Machine Works Limited (Toyota, Japan). In May 2007, Calpine Corporation (San Diego, California) began site prep on a 510-megawatt merchant power plant in Otay Mesa, California. The $300 million project is scheduled for completion in 2009.

The remaining 115 projects totaling $5.7 billion while still scheduled to begin construction in 2007, have not to date received approval and could be deffered to 2008 or cancelled completely.

California is home to more than 2,100 major industrial plants. Gain instant access to phone numbers, addresses and key plant management contacts at these plants by subscribing to Industrial Info’s West Coast Online Plant Directory.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.