Second Half 2007 Spending on the Rise for the State of Illinois

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Researched by Industrial Info Resources (Sugar Land, Texas). From the sprawling industrial centers of the Chicago area to the agriculturally rich central and Southern regions, Illinois has always been a state of great diversity when it comes to industrial spending. Traditionally, spending within the state has hovered around the $5 billion mark annually. However, with the recent boom in Alternative Fuels Industry spending, 2007 is experiencing an amazing jump in spending within the state.

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

Currently Industrial Info is tracking $9 billion worth of capital and maintenance projects that are scheduled to begin construction during the second half of 2007 in the state of Illinois. Couple this with the $5.6 billion worth of project activity that began construction during the first half of the year and Illinois will have almost tripled its traditional annual spending by years end.

Two industries are the driving force behind this dramatic jump in annual spending for the state: the aforementioned Alternative Fuels Industry and the Power Industry. With the Chicago area a hotbed of investment and expansion both in terms of industrial facilities and residential neighborhoods, as well as the recent halt of a moratorium on the increase of electricity prices statewide, the Power Industry has seen an increase in demand for electricity across the state. To help address that need the Power Industry currently has $3.7 billion worth of capital and maintenance project activity expected to begin construction during the second half of this year.

In addition, with the ever increasing price of gas and recent cry for more to be done to halt global warming, the Alternative Fuels Industry has stepped up development of ethanol and biodiesel facilities. Currently the Alternative Fuels Industry has $3.7 billion worth of new facilities that are scheduled to begin construction between July and December 2007.

Other industries are planning to spend some significant money in the coming months as well. The Metals & Minerals Industry expects over $740 million worth of projects to begin construction during this time period while the Food & Beverage and Industrial Manufacturing industries will add an additional $266 million and $232 million, respectively, to the year’s final spending totals.

Some of the key projects driving the spending across these industries include the proposed $2.9 billion grassroot coal-fired mine-mouth 1,600-megawatt Prairie State Energy Campus, a $340 million metallurgical coke manufacturing plant addition within the Metals & Minerals Industry, a grassroot $220 million biofuels complex and a $200 million ethanol plant both in central Illinois within the Alternative Fuels Industry, a $135 million grassroot hog slaughtering plant within the Food & Beverage Industry and a $40 million crankshaft machining plant expansion within the Industrial Manufacturing Industry.

There is no doubt that spending within the state has been irrevocably changed in the last 18 months. The only real question at this point is if this level of spending will be maintained or if it will slowly dwindle in the coming months. All signs point to spending levels remaining high for at least another year, but we will have to see how long the Alternative Fuels boom lasts and if the Power industry will peak in the near future.

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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.