New York and Life Science Reign as Capital Investment Leaders for August 2009 Project Starts in Northeast Region

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Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--New York can claim bragging rights for the month of August in the Northeast region of the U.S. thanks to its expected 14 capital project starts, representing $2 billion, with a particular focus on the construction of research labs. Currently, the entire region, which is composed of Delaware, New Jersey, New York and Pennsylvania, should see 27 projects with a combined total investment value (TIV) of $2.2 billion begin construction throughout the end of the month. A recent survey taken from Industrial Info's PECWEB Direct reveals the region as a whole is carrying a hefty project average TIV for the month of $81 million.

Click on image at right for a breakdown of August project starts the Northeast region of the U.S.

New York kept its usual spot at the top--in no small part because of the planned start of Weill Cornell Medical College's $700 million biomedical research building. As reported last year in the Pharmaceutical-Biotech Tracker - Online Database, the project will add a 16-story, 500,000-square-foot building at East 69th and York in New York City. Designed to meet LEED standards, the building will focus on translational and interdisciplinary research. The project team includes the Polshek Partnership and Tishman Construction, both of New York City. Construction is expected to be complete in 2014. Continuing the current translational trend in university-sourced research buildings, Buffalo Niagara Medical College is readying the start of its own $118 million translational research and bio-incubator this month. Cannon Design (Grand Island, New York) and Turner Construction (Buffalo, New York) are on board for the Buffalo project.

Another major project in the state is the planned $600 million expansion for the power plant in Astoria, New York. Owned by Astoria Energy LLC (Concord, Massachusetts) and operated by SUEZ Renewable Energy (Concord), capacity of the plant will be increased 500 MW. SNC-Lavalin (Bothell, Washington) is serving as the engineering and construction firm for the project, which should be completed in 2012.

Pennsylvania is the only other state in the region with planned construction starts for August. The state has 11 projects valued at $211 million. The largest of these is the Trans-Allegheny Interstate Line Company's (Greensburg, Pennsylvania) $125 million plan to build a power substation in Waynesburg, Pennsylvania. The Kenny Construction Company (Fairmont, West Virginia) is the project's engineering and construction firm. Both Delaware and New Jersey's project cupboards are bare for August construction starts.

It is important to remember that, with financing tight and uncertain market conditions prevailing, there is better-than-fair chance that a number of these projects will be delayed, put on hold or canceled. The individual statuses of each of the 27 projects will be carefully monitored for changes. Eight of the planned projects are for scheduled maintenance programs, carrying a TIV of $12.2 million. Traditionally, these projects have a tendency to proceed as planned. Indeed, many companies are "sneaking in" desired small capex projects within the maintenance budget.

The Northeast currently has 3,600 operational industrial plants. The region represents a wide variety of industrial plants, with the Food & Beverage and Industrial Manufacturing plants responsible for more than 1,200 locations. The Pharmaceutical & Biotech Industry has more than 350 facilities in the region, including both manufacturing plants and research centers. Other sites in the region include approximately 400 chemical plants, 30 major petroleum refineries and nearly 500 involved in the production of metals and minerals. Key information regarding these facilities is included in Industrial Info Resources' Northeast Region Online Plant Directory.

View Plant Profile - 1076442 1059927 1043662
View Project Report - 14003558 14003868 14003619 12004790

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.