U.S. Could See $125 Billion in Industrial Capital, Maintenance Projects Begin Construction in Second Quarter

---

Researched by Industrial Info Resources (Sugar Land, Texas)--One of the keys to economic recovery in the U.S. has been companies investing in this country. Jobs have been a hot topic in recent months, especially as this is an election year, and the gains seen recently are a direct result of continued investment by industrial and commercial companies. Spending has remained strong in the U.S., even when the economy was wavering, and from all indications it is only going to get better in the coming months. Industrial Info Resources is tracking almost 2,000 industrial capital or maintenance projects worth an estimated $125.6 billion that are scheduled to begin construction activities during the second quarter.

Click on image at right for a breakdown by market region of planned 2Q12 construction starts.

The Southwest and Southeast regions of the country are expected to reap the largest benefits from the anticipated spending. Currently, the Southwest region is expected to be the recipient of $24.3 billion of the scheduled project activity, while the Southeast region is nipping at its heels with $23.8 billion in proposed capital and maintenance spending for the quarter. The Mid-Atlantic region is not too far behind, with another $22.8 billion in proposed spending, before the spending totals per region drop off somewhat.

The Great Lakes region, an area that has been valiantly attempting to recover from the devastation caused by the recession, is expected to see another $15.2 billion in construction activity during the months of April, May and June. The Rocky Mountains region and the Midwest region are the last of the regions to breach the $10 billion spending barrier, with the Rocky Mountains region scheduled to see $11.6 billion in second quarter spending and the Midwest will contribute another $10.2 billion.

The Power Industry is expected to be the major spender during the quarter. This key industry is scheduled to have 229 capital or maintenance projects worth an impressive $57.5 billion begin construction activities during the quarter. More than half of this proposed spending will be in the form of a pair of massive nuclear power plant expansions. The two expansions, one in South Carolina and one in Georgia, will account for $29 billion of the industry's spending total for the quarter.

Despite the Power Industry's dominance, other industries are expected to see some significant investment during the quarter. The Alternative Fuels Industry is scheduled to have 131 capital or maintenance projects worth an estimated $18.7 billion begin construction activities during the same time period, while the Industrial Manufacturing Industry is scheduled to see 193 projects worth $11.7 billion begin construction. A trio of industries, the Metals and Minerals Industry, the Oil & Gas Transmission Industry and the Oil & Gas Production Industry, each will see more than $6 billion in total construction starts during the quarter.

The good news is that companies are feeling confident enough in the state of the U.S. to invest this heavily during the prime construction season of summer. These projects also will lead to tens of thousands of new jobs when the construction is completed and thousands of construction jobs in the meantime, which certainly will be good news for a construction industry that continues to face the highest unemployment of any industry in the U.S. Hopefully, the spending will continue to remain high through the third quarter and heading into next winter. If it does, the U.S. will be in a position to declare that it has completely pulled out of the hole that the recession dumped the country into only a few short years ago, and the outlook for the coming years will look bright indeed.

View Plant Profile - 1011884 1011962
View Project Report - 16001637 17001442

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.