Northeast Region's 2008 Capital Investment Forecast: 493 Capital/MRO Projects Valued at $26.5 Billion to Begin Construction

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Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--The Northeast region is poised for a happy economic new year if the scheduled 493 active capital/MRO (maintenance) projects begin construction in 2008. Encompassing New York, New Jersey, Pennsylvania and Delaware, the region is expecting a total investment value (TIV) of $26.5 billion for the projects to get underway next year.

Click on the image for a 2008 analysis of capital spending in the Northeast region.

In terms of investment dollars, this represents a whopping 63% jump over 2007, with its $15.7 billion in project starts. Based on a recent analysis of Industrial Info's PECWEB Direct, there are less individual projects on the books for 2008, dropping 72% from 2007's 565 total. But, as a result of the huge increase in 2008 investment dollars, the average project TIV has risen to $53.7 million in 2008, a jump of $27.7 million (96%) over 2007.

In a departure from tradition, Pennsylvania has nudged out New York to claim first place in 2008, both in terms of the number of projects (217) and TIV ($14.1 billion). Accounting for nearly one-third of the state's TIV is the high-speed Maglev rail project still being planned for Pittsburgh. New York has a way to catch up with the Keystone state, although it still claims a respectable 167 projects worth a TIV of $8.3 billion. Helping New York into second is the planned construction of a grassroot coal-gasification plant in Scriba, New York.

New Jersey has landed 78 projects worth a $2.7 billion, with its largest 2008 project being a $650 million grassroot liquefied-natural-gas-receiving terminal to be built in Bridgeport, New Jersey. The region's remaining state of Delaware will post 31 projects with a TIV of $1.3 billion, $1 billion of which will go toward a project to repower 618 megawatts at Indian River in Millsboro, Delaware.

When considering the region from an industrial sector standpoint, it is not much of a surprise to find that the Power Industry leads the region in 2008, both for number of projects (115) and TIV ($8 billion). Those figures result in a quite impressive project average TIV of $69.5 million. The Industrial Manufacturing group slipped into second place with 86 projects scheduled to begin carrying a TIV of $5.9 billion. Those figures resulted in the group having a per-project TIV average of $11.6 million. Sliding into third place is the Alternative Fuel sector, with 30 projects worth a TIV of $5.5 billion and a project average TIV of $18.3 million. The remainder of the 2008 investment is spread among all of the major industry groups, including Pharmaceutical-Biotech with a current TIV of $2.5 billion being spent on 63 projects. (Pharmaceutical Tracker - Online Database)

The reported currently 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 information on these new plants, which will join the more than 3,000 operational industrial plants in the region. The region represents a wide variety of industrial plants, with the Food & Beverage Industry and Industrial Manufacturing plants responsible for more than 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.

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Industrial Info Resources (IIR) is the leading marketing information services company for 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.