Southeast Region Future Spending Projections Show Over $60 Billion in Capital Expenditures Planned

---

Researched by Industrial Info Resources (Sugar Land, Texas). With only one month left before the close of 2006, a quick glance of proposed projects that will start construction in 2007 and beyond in the Southeast market region gives reason to look forward to the year ahead. To date, over 600 capital projects in the planning and engineering stages are tied to $60.7 billion in expenditures. Across the five-state region including Alabama, Florida, Georgia, Mississippi, and Tennessee project expenditures are geared towards building new plants and electrical generating units, upgrades and rebuilds at plants currently in operation and expansions.

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

Fifteen of the largest upcoming projects have a minimum total investment value (TIV) of $1 billion and have an aggregate TIV of $28.9 billion, or 47.6% of all future projections. Over $11 billion is earmarked for unit additions at nuclear power plants and construction of a 1,100-megawatt (MW) nuclear station on a greenfield site. Other projects above the $1 billion range include a vehicle assembly plant and a steel mill complex.

Project owners anticipate starting construction on 428 projects from January until the end of 2007 and 188 starting in 2008. Estimates place 2007 figures at $19.45 billion, and beyond January 2008 at $41.24 billion.

The Power Industry over the next couple of years plan to invest more than $35.66 billion in electrical generating plants across the region, thereby becoming the leading industry compared to Industrial Manufacturing-$9.13 billion, Metals and Minerals-$4.76 billion, Terminals-$2.32 billion, Pharmaceutical & Biotech-$2.16 billion, and Alternative Fuel-$2.07 billion.

Geographically, Florida leads all states in terms of combined total investment value, with $23.07 billion. Georgia ranks second with $13.55 billion, followed by Alabama with $11.89 billion, then Mississippi with $7.61 billion, and lastly, Tennessee with $4.56 billion.

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.