Momentum Appears Set for Hefty 2008 First Quarter for Chemical Processing Industry

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Researched by Industrial Info Resources (Sugar Land, Texas)--As the current year nears its end, more and more attention is being given to how the next year will begin. Industrial Info is tracking more than $2.2 billion in total Chemical Processing Industry (CPI) spending for the first quarter of 2008 represented for 139 projects as part of its North American Project Database. This is an important time of the year to evaluate potential spending for the first quarter of 2008, as most equipment and service providers are fine-tuning outlooks for the coming year. A strong start to the year is a good indicator and generally sets expectations of what to expect as the year rolls out.

Click on the Image at right to view the North America Chemical Processing Industry Project Spending Analysis Chart.

The CPI in the United States and Canada has performed strongly in 2007, consistently maintaining a confidence factor of greater than 70% the entire year. The confidence factor measures the number of active and completed projects against canceled project activity over a five-year span to determine the level of confidence in future projects maturing and moving forward. For the past two years, first-quarter spending in the CPI has exceeded the previous year, and the momentum appears to be set for another gain over 2007 levels in the first quarter of 2008.

Not only is total spending set to achieve new heights, the average total investment value (TIV) per project is up considerably, as well. The average project TIV for the first quarter of this year hovered near $10 million, and the average TIV of projects identified for the first quarter of 2008 is more than $15 million so far. This sharp increase isn't related to a substantial change in the number of planned projects but a greater number of large projects. At least six active projects are planned to begin construction during the quarter that exceed $100 million each, and there are well over a dozen projects ranging in size from $20 million to $80 million each.

The two largest projects planned for early next year are both in Louisiana. ADA-ES Incorporated (Littleton, Colorado) and Criterion Catalysts & Technologies Incorporated (Houston, Texas) are planning more than $600 million combined that has the potential for beginning construction during the first few months of next year. ADA-ES is developing plans for a grassroot activated carbon plant in northern Louisiana while Criterion is progressing quickly with engineering plans for a unit addition and expansion of its catalyst plant in Port Allen. Criterion has hired S&B Engineers & Constructors Limited (Houston, Texas) and its subsidiary company Ford Bacon & Davis LLC (Baton Rouge, Louisiana) to provide engineering, procurement and construction services for the expansion.

Industrial Info updates project schedules routinely and adds new projects to its database daily. Additional projects will be identified for the first quarter before the year ends, and some will certainly be delayed months or years. Despite the recent unseasonable spike in crude oil prices, the general health of the CPI is strong enough that the outlook for another good year is still very positive.

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Industrial Info Resources (IIR) is the leading company for marketing information services covering the industrial process, heavy manufacturing and energy-related markets throughout the world. For more than 24 years, IIR has provided accurate and timely intelligence through products such as plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.