Northeast Mid-Year Review: $11 billion in Capital/MRO Projects Kick-Off in First Half of 2007

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Reported by Annette Kreuger, Industrial Info Resources, Incorporated (Sugar Land, Texas). The industrial marketplace is alive and well in the Northeast Region. A recent analysis of Industrial Info's active plant database revealed that in the first six months of 2007, $11.5 billion worth of Capital/MRO (maintenance) investments began construction. Spread over a total of 272 projects, this translates to an average total investment value (TIV) of $42 million per project. This is an enormous jump in project activity over the same time frame in 2006, when there were 60 projects with a cumulative TIV of just more than $1 billion that got underway.

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

New York continues to be the regional leader for the first six months of 2007, by claiming a $6.1 billion TIV spread over 97 projects, resulting in an average TIV of $62 million. With 76 projects, the average TIV per project in the state translates to $84.2 million. Pennsylvania actually had the most individual projects – 118 –

but remained in second place as the spending only totaled $4.7 billion, resulting in a project average TIV of $39 million.

The region’s other states, which include New Jersey and Delaware, also experienced substantial activity in the first half of 2007. New Jersey claimed $588 million for a total of 48 projects (average TIV $12.25 million) and Delaware had $57 million invested into 9 (average TIV $6.3 million.) The majority of projects, which range from grassroot builds to maintenance programs, are occurring on site at the existing 3,000 plus operational plants found within the region, as found in the Northeast Region Online Plant Directory.

Another analysis of project data for the six months in the region reveals the Industrial Manufacturing group leads in both project spending – $4.9 billion—and total number of reported projects – 90. These figures translate into a hefty project average TIV of $54.4 million. One project accounts for the lion’s share of the sector’s activity, a $3.8 billion 2.5-mile subway line and station project in Manhattan.

Power continues to reside in 2nd plant with 27 projects valued at $1.9 billion. The average project TIV is $70 million and the largest project for the sector is a grassroot 290 MW Waste Coal power plant in River Hill, Pennsylvania. The remaining projects in the region represent every industry group, including Pharmaceutical-Biotech, Chemical Processing and Metals & Minerals.

As detailed in Industrialinfo.com's Northeast Region Online Plant Directory, all new plants will join the over 3,000 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.

To test drive a demo of the Northeast Online Plant Directory, click the image at right.

View Plant Report - 1070302 1066382
View Project Report - 14003244 12003770

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.