North American Forest Products Industry Spends Robust $1.4 Billion on Fourth-Quarter Construction Starts

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Researched by Industrial Info Resources (Sugar Land, Texas)--Fourth-quarter estimates for the North American forest products industry are ahead of earlier projections that placed end-of-the-year spending at a reduced level as a result of the sluggish economy. Industrial Info has identified more than 50 capital and maintenance projects in the industry that are scheduled to commence construction between October and December. Individual project values range from $500,000 to as high as $315 million. The aggregate total investment value of all projects is slightly more than $1.4 billion.

The fourth quarter of the calendar year is when most of North America's mill owners develop project plans for the following year or wrap up the current year's projects. Moreover, fewer capital and maintenance projects are scheduled to begin construction during this period.

Planned North American expenditures in the U.S. account for about 65% of all expenditures and are spread across 36 projects valued at $915 million. In Canada, construction starts tally up to $486 million from 11 projects. Mexico will see four projects with a total value of $20 million.

From a regional standpoint, the Southeast region has the highest project count, with 11 projects that total $397 million. Seven projects are slated for the Southwest region and are worth more than $40 million. Both Western Canada and Ontario are on schedule to begin construction on five projects, with total investments of $212 million and $238 million, respectively.

Construction starts will be the most active in October, with 24 projects worth a little more than $338 million. Figures for November and December starts show 16 projects valued at $544 million and 11 projects worth $538 million, respectively.

Highlights of expenditures for the period include several tissue machine installation projects, steam turbine generator additions, and several maintenance shutdowns.

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.