U.S. Grassroot Construction to Ramp Up During Second-Quarter 2013

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Researched by Industrial Info Resources (Sugar Land, Texas)--The second quarter of each year is traditionally when spending begins to increase significantly in the U.S., with grassroot projects playing a significant role, and 2013 appears to be right on track. After the year began a little slow thanks to a great deal of uncertainty about the near-term future of the U.S. economy, companies are again planning for the future. Looking ahead to the second quarter, Industrial Info is currently tracking $47.8 billion in grassroot projects that are scheduled to begin construction in the U.S., a good sign for the balance of the year.

Click on the image at right for a graph detailing grassroot projects that are scheduled to begin construction in the U.S. in second-quarter 2013.

The most significant grassroot activity is expected to take place in four key regions: the Great Lakes, the Rocky Mountains, the Southwest and the West Coast regions. More than $8 billion in grassroot projects are scheduled to begin construction during the coming quarter in both the Great Lakes and Rocky Mountains regions. The Southwest and West Coast regions are not far behind, however, as each of these key regions are expected to see more than $7 billion in grassroot project activity.

Several other regions are expected to see significant activity in April, May and June. The Mid-Atlantic and Midwest regions are each anticipating more than $5 billion in grassroot projects, while the Southeast region will contribute another $3 billion. The Northeast region will be the final region to top the $1 billion mark for the quarter, while the New England region will fall just shy of that mark with $843 million.

Two industries are expected to dominate the second quarter grassroot project scene. The Power Industry, always a spending powerhouse, is currently planning construction starts on $15.6 billion in grassroot projects across the U.S., while the Alternative Fuels Industry is expected to see the most significant investment total at $16.3 billion. Between these two industries, 146 grassroot projects are planned, which accounts for 44% of the total grassroot projects for the quarter, while the total expenditures planned for these industries alone are 67% of the total planned spending.

Six other industries are expected to top the $1 billion mark in total grassroot project activity during the second quarter. The Oil & Gas Transmission Industry and the Metals & Minerals Industry are each poised to see in excess of $4 billion in total spending for the quarter while the Food & Beverage Industry is hoping most of its $2.8 billion in grassroot projects reach the construction stage. The Oil & Gas Production, Chemical Processing and Pharmaceutical & Biotech industries round out the last of the industries that are planning to reach the $1 billion mark, while the Terminals, Petroleum Refining, Pulp, Paper & Wood and Industrial Manufacturing industries will fall short of the mark.

While not all of the grassroot projects currently scheduled to begin construction in the U.S. during the second quarter will actually do so, a significant portion of them will. Much will depend on whether or not Washington D.C. can solve the multiple lingering financial issues that are threatening the U.S. economy before summer is in full swing. In addition, some of the projects will be postponed for other reasons, or possibly placed on hold or outright canceled before construction activities can even begin. Regardless, enough of this project activity will make it to construction in the next quarter to make it a success in terms of total spending.

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.