Planned Industrial Project Spending in Louisiana Up 12.3% in 2006

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Researched by Industrialinfo.com (Industrial Info Resources; Houston, Texas). Owners and developers of industrial projects in Louisiana are currently planning to begin construction of 242 major projects in 2006. These projects total about $6.4 billion in total investment value. When compared to a snapshot of planned project activity taken at the beginning of 2005, Louisiana is showing an increase in the number of projects and an increase in project spending of 12.3%.

Click on the image at right to view the Gap Measurement Chart comparing 2005 vs. 2006 industrial project spending in Louisiana.

Gap Measurement shows that there was 41% project fallout in 2005. That figure has reduced this year, falling to about 31% project fallout in 2006.

Several factors may be coming together to create a strong capital spending year for Louisiana. Many plants along the Louisiana Gulf Coast had to shutdown due to Hurricanes Katrina and Rita, causing the delay of capital projects, and creating new priorities, such as the rescheduling of maintenance work. Some companies took advantage of the extended down time to perform maintenance work that was scheduled for later. This is especially true for the Chemical Processing Industry, where most of the plants in this industry are located along the Gulf Coast. See related January, 31, 2006 news article - Louisiana Chemical Plants Near Completion of Hurricane Related Repairs Plan Expansion.

2006 may very well witness the restart of some of the capital projects that were delayed. In fact, the CPI has 96 projects totaling $1.6 billion planned for 2006. That’s up more than 200% from 2005 figures.

Click on the image at right to view a chart showing the breakdown of spending by industry

The Power Industry is also looking at substantial increases in project spending for 2006 with 22 projects totaling $2.2 billion.

Other industries showing significant spending in 2006 for Louisiana include the Oil & Gas Terminals Industry with twelve projects totaling more than $1 billion, and the Petroleum Refining Industry with 42 projects totaling $480 million.

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 22 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.