Industrialinfo.com Identifies Future Plant Closings in the U.S. Industrial Market

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). As we slowly creep out of the 11th recession since 1945, the industrial market continues to be held hostage by more layoffs due to plant closings. With more pressure coming from the top, management continues to cut cost and reduce or remove non-profitable business units resulting in plant closings.

In a recent survey conducted by Industrialinfo.com, 32 U.S. plants were identified as possible closures in the near or distant future. Most are plants that are being retired as a result of downsizing, consolidation, or asset replacements due to inefficiencies. However, what we are finding this year are fewer plant closings in comparison with the previous two years. This signifies that corporations are in a better position, and are controlling operating costs. As the economy continues to improve, the industrial market should rebound quickly.

For the last several months, plant closings reported by industrialinfo.com, are down month after month. New plant starts are beginning to out weigh the number of closing occurring across the nation. For instance, Nissan began production this week on its second U.S. assembly plant. Their efforts have brought at least six new tier suppliers to the Mississippi area.

Future Plant Closing Survey Results:

Seven (7) power generation plants representing 2,954 MW of electricity, including a 517 MW Nuclear plant, 1,317 MW capacity from (2) Coal-Fired Plants and 520 MW generation capacity from (5) Natural Gas Fired.

Seven (7) plants in the chemical industry have also been identified to close. They include a polyethylene compounding plant, a PVC resins and a nylon resins plant, two (2) pigment plants and a Sun Chemical dye plant in New Jersey.

Other future plant closures were found within the Industrial Manufacturing sector (Durable and Non-Durable Goods). Future closings include an engine piston manufacturing plant, a fiberglass body factory, and one of the J L French's die-casting operations. The textile industry continues to shutdown costly U.S. operations in an attempt to relocate production overseas. Such is the case with a Gold Toe Brands plant.

Reducing cost by outsourcing manufacturing has also become popular. The result is typically plant closings. Royal Phillips Electronics NV is searching for the right outsourcing firm, but has yet to successfully find a quality supplier that would ultimately eliminate production at two of its plants.