Second Quarter Spending in the Southwest is Forecast to Remain Strong at $4.2 Billion

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Based on active projects from Industrialinfo.com's North American Project Database, second quarter spending is on track to equal first quarter spending projections signaling continued strength and confidence in the Southwest regional economy. The region, which consists of Texas, Oklahoma, Louisiana and Arkansas, is expected to see the start of 214 capital and maintenance projects with a Total Investment Value (TIV) of $4.2 billion during the second quarter compared to the estimated TIV of $4.4 billion in the first quarter of 2004.

Although, the TIV remains relatively stable between the two quarters, the number of projects decreased, prompting an increase in the average TIV. The average TIV is expected to increase to $19.6 million for the second quarter up from $13.4 million during the first quarter. The number of new capital and maintenance project starts during the second quarter decreased substantially in the power, chemical processing, and petroleum refining industries from a total of 205 in the first quarter to just 107 projects in the second quarter. Some of the major project cancellations or delays influencing this decrease were Boeing Corporation’s plans for a $500 million aircraft assembly plant in Texas (PEC: 01009464), and Cielo Wind Power LLC's 100 megawatt wind farm also planned for Texas (PEC: 01009511).

Click on the image to the right to view two bar graphs generated from Industrialinfo.com's PECWeb Direct web based tool showing a comparison of first quarter spending by project industry and state.

The development of several liquefied natural gas (LNG) receiving and regasification terminals along the Louisiana coast has put the Terminal industry as the leading spender for the second quarter representing nearly $800 million in total capital spending. The power industry with combined maintenance and capital spending follows with approximately $776 million.

Industrialinfo.com provides online access to over 4,200 industrial plants that make up the Southwest market region as well as thousands of other plants in regions across the United States via a tool called the Online Plant Directory. Every month Industrialinfo.com dynamically provides critical updates for these plants including management contact changes, employee counts, ownership changes and the addition of new plants that have recently started up. To learn how your company can benefit from this tool Click on the hyperlink above.