Spotlight Michigan: Industrialinfo.com Identifies Over $6 billion in Industrial Capital Spending Activity for 2003.

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). The State of Michigan is one of the most industrialized states in the nation, and it shows. During the past 5 years, over $22 billion in project construction has taken place, and for 2003, industrialinfo.com has identified another $6.8 billion of project activity tentatively scheduled for construction this year.

Power generation projects will command the majority of capital spending in 2003. Power generation has swept through Michigan like most other well populated regions. Over 138 projects can be accounted for during the past five years valued at $9 billion. In 2003, another few billion dollars in power plant activity will bring the state of Michigan more construction jobs, and permanent employment.

Other good thriving industries in Michigan include the chemical sector, steel processing, metal stamping, and the automotive industry supporting over $2 billion in new spending.

Through industrialinfo.com's analysis, not only is capital spending looking healthy for the state, but also major maintenance programs have accounted for over $130 million in spending or 34 individual plant or unit outages, turnarounds or shutdowns. This also boosts short-term employment for skilled labor, as well as contract services and equipment vendor opportunities.

Click on the image at right to view the Michigan Spending Analysis.

Territory Analysis

2003 project activity seems to be concentrated in several areas. The highest investments can be found in Berrien County where 6 projects valued at over $1.1 billion are scheduled to take place. Saginaw County with over $1 billion spread across five industrial projects and Saint Clair County with over $860 million in spending. Wayne County, home to over 170 industrial plants, has the highest amount of projects scheduled to kick-off in 2003. Over $270 million distributed across eleven projects will begin this year.

National Industrial Figures

Gross Domestic Product (GDP) measures the total production and consumption of goods and services in the U.S. For 2001, GDP represented $10 trillion ($10,082.2), of which private industries accounted for $8.8 trillion or 87% of GDP with the remaining $1.9 trillion representing contributions from government entities. In 2001, the industrial market represented approximately $2.2 trillion or 25% of GDP output.

National Industrial Markets include:

• $139 billion - Mining (Metals, Coal, Oil & Gas Extraction & Nonmetallic minerals)
  
• $1.4 trillion - Manufacturing (Durable Goods & Nondurable Goods)
  
• $227 billion - Transportation (Electricity and Gas, Oil Pipelines)
  
• $25.8 billion - Transportation (Railroads)
  
• $126 billion - Transportation (Trucking and Warehousing)
  
• $320 billion - Services Sector (Non Consumer)

State of Michigan Industrial Figures

Gross State Product (GSP) measures the total production and consumption of goods and services in the state. For 2000, GSP for the state of Michigan represented $ 300,000 million ($325,384), of which private industries accounted for $292,083 or 89.8% of the GSP with the remaining $33,301 million representing contributions from Government entities. In 2001, the Industrial Market represented approximately $134,223 or 41% of GSP output.

Top State Industrial Markets include:

• $881 million - Mining (Metals, Coal, Oil & Gas Extraction & Nonmetallic minerals)
  
• $85,465 million - Manufacturing (Durable Goods & Nondurable Goods)
  
• $7,872 million - Transportation (Electricity and Gas, Oil Pipelines)
  
• $475 million - Transportation (Railroads)
  
• $3,771 million - Transportation (Trucking and Warehousing)
  
• $16,626 million - Services (Non Consumer)

The Automotive Industry in Michigan

As "The Automotive Capital of the World," the Detroit Region continues to produce more cars and trucks than any other single state. More than 1.8 million cars and 1.2 million trucks rolled off of Michigan assembly lines in 2000. 71 of the top 100 original equipment manufacturers are headquartered or have a major presence in Regional Detroit.

Currently, there are 231 Automotive related manufacturing plants located in Michigan representing assembly plants and tier suppliers. Of those plants, plant ownership is spread out over 101 companies. Tier suppliers make up 214 plants and 96 companies. IIR has identified over $6.49 billion in spending over the last five years (1998 -2002) for both tier suppliers and assembly plants.

In the year 2000, the state of Michigan produced 1,846,968 cars with the Detroit region producing 1,443,658 or 78% of the cars and all 1,262,382 of the state's trucks. Combining the two, the Detroit Region is responsible for producing 2,706,040 of the state's 3,108,350 vehicles, or slightly more than 87% of motor vehicles produced in Michigan.

Michigan's Detroit Industries rank by GMP (Gross Metropolitan Product - Output)

1. $10.2 billion - Machinery - Agricultural, Construction, and Mining Machinery Manufacturing; Industrial Machinery manufacturing; and Commercial and Service Industry Machinery Manufacturing. The other industry groups make general-purpose machinery: Ventilation, Heating, Air Conditioning, and Commercial Refrigeration Equipment Manufacturing; Metalworking Machinery Manufacturing; Engine, Turbine, and Power Transmission Equipment Manufacturing; and Other General Purpose Machinery Manufacturing.

2. $6.5 billion - Fabricated Metal Products - Manufacturing includes transforming metal into intermediate or end products, other than machinery, computers and electronics, and metal furniture or treating metals and metal formed products fabricated elsewhere.

3. $4.9 billion - Primary Metal Manufacturing - smelting and/or refining of ferrous and nonferrous metals from ore, pig or scrap, using electrometallurgical and other process metallurgical techniques. The output of smelting and refining, usually in ingot form, is used in rolling, drawing, and extruding operations to make sheet, strip, bar, rod, or wire, and in molten form to make castings and other basic metal products.

4. $3.5 billion - Plastic & Rubber Products - Manufacturers make goods by processing plastics materials and raw rubber. Many manufacturing activities use plastics or rubber, for example the manufacture of footwear, furniture or automotive components.

5. $3.3 billion - Chemical Manufacturing - transformation of organic and inorganic raw materials by a chemical process and the formulation of products. Production includes basic chemicals, intermediate and end products produced by further processing of basic chemicals. The paint and coating sector of this group makes up over $2 billion of the $3.3 represented in this sector.

6. $2.3 billion - Food & Beverage

7. $1.8 billion - Computer & Electronic Product Manufacturing

8. $1.5 billion - Non Metallic Mineral Product Manufacturing (Glass and Concrete Products)

For an in depth discussion of trends in the Michigan industrial market place listen to an interview with Mike Bergen, Vice President of Research for Industrial Information Resources featured on the Industry Today radio program on Monday Morning at 8:30 am. Click here for details Crazy Al's Radio Party