Northeast Industrial Outlook: Reported Capital/MRO Project Starts for 2007 Jump 47% to $25.8 Billion

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Reported by Industrial Info Resources (Sugar Land, Texas). While 2006 was an active year in terms of capital/MRO (maintenance) project starts in the Northeast, 2007 is poised for even more activity. Encompassing the states of New York, New Jersey, Pennsylvania and Delaware, the region is currently forecast to begin construction on 531 projects carrying a total investment value (TIV) of $25.8 billion, an increase of 47% over 2006. Despite the fact that there were more project starts in 2006 (558), the TIV was a considerably lower $17.5 billion. Based on a recent analysis of Industrial Info’s PECWEB Direct, the projects scheduled to get underway within the next twelve months carry an average TIV of $48 million, demonstrating yet another increase of $54% over the 2006 average TIV of $31 million.

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

New York is currently the clear state of choice for project investment with $11.5 billion worth of construction scheduled to begin this year. Spread over 192 projects, each averages out to an impressive $59 million of TIV. This is a huge change from 2006 when the state carried 187 projects each averaging $11.7 million for a total TIV of $2.1 billion. New Jersey has nudged out last year’s first place Pennsylvania down to third place. New Jersey earned its ranking with 99 projects valued at a total TIV of $7.3 billion, displaying quite an investment jump from its 2006 figures of 93 projects carrying a TIV of $928 million. Pennsylvania, the leader from last year, slipped into third place with 214 projects worth $7.2 billion. The state has nothing to be ashamed about as this is still a definite increase over 2006 project starts, which covered 248 projects valued at $4.5 billion.

In terms of industry sectors, Industrial Manufacturing is the Northeast region’s spending leader with 131 projects valued at $11.6 billion scheduled to get underway this year. These current numbers evidence a whopping increase when compared to 2006 when the group invested $1.7 billion spread over 164 projects. While slipping down to second for 2007, the Power Industry is strong with $7.7 billion in project starts forecast for the year with its 115 projects carrying an average TIV of $66 million. This is again a major gain over 2006 when Power led the region with its $1.8 billion investment into 102 projects.

The reported active projects include everything from the construction of grassroot plants to general upgrades and maintenance. Subscription to Industrial Info Resources’ Northeast Region Online Plant Directory will provide access to these new plants that will join the over 3,000 operational industrial plants located in the region. The region represents a wide variety of industrial plants, with the Food & Beverage Industry and Industrial Manufacturing plants responsible for over 1,200 locations. Others with a presence in the region include approximately 500 chemical plants, 40 major petroleum refineries, 130 bulk storage terminals, and 300 power-generating stations.

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.