Southeast Region Rises to the Top of $25.8 Billion Metals & Minerals Industry in 2006

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Researched by Industrial Info Resources (Sugar Land, Texas). During the first three quarters of 2006, Industrial Info reported 704 unique Metals & Minerals Industry projects in the U.S. totaling $25.8 billion in total investment value (TIV). These projects have planned construction start dates from 2006 to 2010. About 75% of the total spending is scheduled to begin construction in 2006 and 2007.

Steel mill projects lead the pack, garnering the majority of the project work this year with 134 projects totaling $7.2 billion. Cement manufacturing is second with 140 projects totaling $3.8 billion. Copper mining is the comeback sector of the year with six projects totaling $2.1 billion. Industrial Info is forecasting that the strength of these sectors will continue to generate increasing project activity going through 2007.

The leading market region for the Metals & Minerals Industry project development is the Southeast market region with 92 projects totaling almost $6 billion in total investment value. The Southeast region surpassed perennial leading region, the Great Lakes, which traditionally leads capital spending in the U.S.

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

When comparing 2006 to the same time period in 2005, during the first three quarters there were 665 projects reports identified totaling $18.8 billion. That shows a 37% increase in project activity in 2006 when compared to 2005.

The Southeast region is experiencing the largest growth with 124% in 2006. This can be attributed to a large number of steel mill and cement manufacturing projects announced this year. In general, steel mills in the Southeast are being expanded and new ones are being built to support the new automotive manufacturing mecca in the southern U.S. Cement is a regional product manufactured close to where it is consumed, and the Southeast U.S. is in major need of additional capacity. For example, Florida imports up to 40% of its cement requirements from overseas. Hence, there is a major push to construct new cement plants in this area.

Only two regions declined during the study period - the Northeast and Mid-Atlantic regions. Reported project activity declined by 15% in the Northeast and 9% in Mid-Atlantic in 2006.

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.