Uptick in Industrial Construction Starts Forecast to Continue in 2012

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Researched by Industrial Info Resources (Sugar Land, Texas)--The recovery of industrial construction activity in the U.S. that began in 2010 has continued in 2011. According to Industrial Info's North American Industrial Project Spending Index, growth in industrial construction is up 25% in 2011 compared to last year. As the holiday season approaches without pause, industrial firms are beginning to evaluate opportunities on the horizon for the New Year, and it appears that 2012 will usher in a continuance of strong industrial construction starts.

Industrial Info is tracking more than 5,200 capital and maintenance projects scheduled to begin construction in 2012 at industrial plants in the U.S. These projects represent $356 billion in total investment value (TIV).

Click on the image at right to view a chart showing the breakdown of planned U.S. project construction starts for 2012 by market region.

The Southwest region, which includes Arkansas, Louisiana, Oklahoma, and Texas, is the largest region for industrial projects in 2012, with more than 1,100 projects totaling $60.4 billion. The Great Lakes region is second, with 847 project totaling $53.2 billion, and the West Coast region is third, with 496 projects totaling $50.3 billion.

Industries leading construction going into 2012 include Automotive, Oil & Gas, Metals & Minerals and Power Generation. Yesterday, Republic Steel (Canton, Ohio) cited a much improved U.S. automotive industry and an increase in oil & gas development as leading reasons for an expansion in Lorain, Ohio. The expansion is scheduled to start early next year.

About half of the total project value scheduled for construction starts in 2012 is for the Power Industry. Two big nuclear power plant expansions are scheduled to begin construction next year in South Carolina and Georgia. Combined, these projects represent $29 billion in total investment value. Georgia Pacific Power, a subsidiary of Southern Company (NYSE:SO) (Atlanta, Georgia) is constructing two units at the Vogtle plant, and South Carolina Electric & Gas Company is constructing two units at the Virgil C. Summer plant in Jenkinsville, South Carolina.

Industrial Info has just released the 2012 Global Industrial Outlook, available online.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.