Pulp Paper and Wood Industry Expenditures Strongest in the Southeast Region

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Researched by Industrial Info Resources (Sugar Land, Texas). It has been widely reported for some time now that the U.S. Pulp, Paper, and Wood Industry has been experiencing some of its toughest years. Much of the recent news has been centered on plant closings across the country, companies restructuring, along with mergers and acquisitions. The current state of the industry has resulted in a reduction of expenditures towards capital and maintenance projects at manufacturing operations. While spending levels in some regions are at average levels, expenditures at plants in the Southeast Region, which is comprised of Alabama, Florida, Georgia, Mississippi, and Tennessee is on the rise. Moreover, the forecast of expenditures reveals 2006 figures of $628 million and $358 million for 2007.

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

The wood processing sector of the industry shows no signs of slowing down after two consecutive years of an upward trend in spending. For 2006-2007, lumber and reconstituted wood products manufacturers plan to invest over $600 million in new plant construction and expansions. The pulp mill sector has just over $40 million is earmarked for both capital and maintenance. Aside from a $20 million expansion project at a bleached kraft pulp mill in Mississippi, the remaining balance will be geared towards maintenance shutdowns. Expenditures at paper and paperboard mills are considerably low at $330 million, but have the potential for increases as more companies examine paper machine rebuilds aimed at grade conversions.

From a geographical perspective, the Southwest Region ranks second with plans for $682 million, followed by the Midwest Region with $671 million, the Mid-Atlantic with $509 million, the West Coast with $250 million, Great Lakes with $203 million, New England with $133 million, Rocky Mountains with $112 million, and a mere $2 million for the Northeast Region.

Within the Southeast Region, Alabama will be the most active state in terms of projects and total investment value with twelve planned projects worth $416 million. The forecast for Mississippi shows $198 million, Georgia $168 million, Tennessee $106 million, and Florida $102 million.

According to Industrial Info’s Southeast Online Plant Directory, there are 479 operational plants in the Southeast Market Region. Paper, paperboard, and related plants have the highest concentration of plants with 249 plants, while the wood sector shows 220 plants with only 10 pulp mills.

Click on the image at right to try out a free demo of the Southeast Online Plant Directory.

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 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.