Texas Experiences 29% Growth in Industrial Project Spending Year to Date in 2006

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Researched by Industrial Info Resources (Sugar Land, Texas). According to the latest monthly update to the North American Industrial Spending Index, the Southwest Region, which includes Texas, Louisiana, Arkansas and Oklahoma, is experiencing 29.1% growth in project spending at this time in 2006, when compared to 2005.

Traditionally, Texas leads not only the region, but the nation in industrial project spending with its heavy oil & gas-related, and industrial manufacturing expenditures.

Industrial Info identified a total of 1,144 projects in Texas, which were scheduled to begin construction in 2006 or beyond. These projects represent more than $88 billion in potential total investment value (TIV). About 203 of those projects have been cancelled or put on hold leaving 941 active projects with a TIV of $77 billion.

Click on the image at right to view a chart showing the breakdown of active Texas projects by industry

Of that total, 480 projects totaling $16.4 billion are still active for 2006, meaning that they have either started construction or are scheduled to begin construction in 2006. Approximately 71 projects totaling $386 million began construction in 2006 and have already been completed.

Another 128 projects totaling more than $13 billion were cancelled or put on hold during 2006. Projects cancelled this year include a $45 million Maleic Anhydride manufacturing unit addition at Huntsman Corporation in Odessa, Texas. Another example of a cancelled project is a $250 million combined cycle power plant in Dayton, Texas that was finally cancelled after being on hold for a couple of years. Despite being fully permitted, natural gas prices and the inability for the owner, Sempra Energy, to secure a power purchase agreement doomed the project.

Looking ahead to 2007, currently there are 363 projects worth $26 billion in TIV scheduled to begin construction.

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.