Planned Second-Quarter Industrial Project Starts Stellar in Ohio

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Researched by Industrial Info Resources (Sugar Land, Texas)--After more than a year of sluggish spending thanks to the national recession and the toll it has taken on the Great Lakes region, signs of a slow recovery abound. The employment situation in the region is slowly improving, and spending is beginning to increase once again. The state of Ohio is a perfect example of this trend. In 2009, slightly more than $1 billion in capital and maintenance project activity took place in Ohio, making the year a very slow one for the state. Looking at projects that are currently scheduled to begin construction in the second quarter of 2010 shows what a dramatic difference a year makes. Industrial Info is currently tracking 62 capital or maintenance projects worth an estimated $11.8 billion that are scheduled to begin construction in the state of Ohio during the second quarter of this year.

Click on image at right for a breakdown by industry of second-quarter construction starts in Ohio.

The bulk of this activity will take place in the northeast corner of the state, the home of cities such as Cleveland and Akron. The northeast corner will see $7.2 billion of the $11.8 billion to be spent during the quarter. The southeast section of the state, home to Columbus, will also see significant investment during the quarter, with $2.8 billion in project activity scheduled to begin. The northwest section of Ohio is expected to see $1.3 billion in construction starts during the quarter, while the southwest region will see the smallest investment, $426 million.

The Alternative Fuels Industry, which has been struggling throughout the recession, will provide the largest amount of construction activity, accounting for $6.7 billion of the quarter's construction starts. This is primarily due to two capital projects: a proposed $6 billion grassroot coal-to-liquids plant and a proposed $275 million grassroot fuel ethanol plant. While this does not indicate the Alternative Fuels Industry is back in all its glory, it is a step in the right direction for an industry that has had its share of problems in recent months.

The Metals & Minerals Industry will see $2.8 billion in capital and maintenance projects the coming quarter. A proposed $1.5 billion grassroot steel mini-mill accounts for much of this spending. However, there are other projects boosting spending totals as well, such as a proposed $650 million steel mill expansion and pipe mill addition and a proposed $100 million grassroot aluminum bottle plant.

Several other industries will make sizable contributions to the second quarter's impressive construction starts total. The Power Industry, a mainstay in the state and a consistently high spender, will contribute $1.2 billion in capital and maintenance construction starts to the quarter's total. The Refining Industry will add $460 million in project activity, and the Oil & Gas Transmission Industry will contribute $430 million to the total.

While we cannot expect similar spending totals for every quarter this year, it is good to see this spike as the prime construction months begin. The state needed this major boost in spending and investment. Hopefully this investment, coupled with the projects that will begin construction during the late summer, fall and winter will attract additional investment in the state. If Ohio can use this quarter to jump start its economy, it may also help the balance of the region get things rolling. While this is only the beginning of recovery for Ohio, it is a very good beginning indeed.

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