U.S. Industrial Construction Starts Expected to Top $60 Billion in Third-Quarter 2012

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial construction work has been booming in the U.S. thus far in 2012. During the first two quarters of the year, Industrial Info Resources has tracked just less than 2,900 capital or maintenance projects worth an estimated $119 billion that have begun construction activities in the U.S. That is an average of just about $20 billion in new industrial spending occurring each and every month, which is certainly a good thing for the overall economic outlook. While jobs continue to be a pressing issue, spending has ramped back up and is moving along at a very solid pace. Looking ahead to the third quarter of the year, Industrial Info is currently tracking another 1,700 capital or maintenance projects worth an estimated $60 billion that are scheduled to begin construction, which is right in line with the quarterly spending average the U.S. has seen this year.

Click on the image at right to view a breakdown of planned construction starts by industry.

Chief among the expected spenders will be the Alternative Fuels Industry. This industry is currently scheduled to see construction begin on close to 120 capital or maintenance projects worth an estimated $21.6 billion in the coming quarter. Whether or not all of these projects actually make it to construction is uncertain but a large portion of them certainly will, which should add a significant number of construction jobs in the next three months.

The Power Industry, a traditionally big spender in the U.S., is also expected to see a very solid third quarter when it comes to construction starts. Currently, some 150 capital or maintenance projects worth an estimated $11.6 billion are expected to begin construction activities during the coming quarter in this vital industry. Several other industries also are expected to see very solid capital or maintenance spending. The Oil & Gas Transmission Industry is scheduled to see 78 capital or maintenance projects worth $5.2 billion begin construction, while the Pharmaceuticals & Biotech Industry will contribute another 228 projects worth $4 billion.

The Food & Beverage IndustryIndustrial Manufacturing Industry each will add $3 billion to the total spending for the quarter in the form of 215 projects and 320 projects, respectively. A trio of industries is expected to see in excess of $2 billion in spending in the coming three months: the Oil & Gas Production, Chemicals Processing, and Metals & Minerals industries. The Petroleum Refining Industry is expected to see some 103 projects worth $1.6 billion begin construction, while the Terminals and Pulp, Paper & Wood industries each will see less than $1 billion in total spending for the quarter.

Two regions of the country are going to benefit the most from the capital or maintenance spending occurring during the third quarter. The Southwest region, which consists of the states of Texas, Louisiana, Arkansas and Oklahoma, is poised for 318 capital or maintenance projects worth an estimated $15.5 billion that are to begin construction, while the Great Lakes region, which consists of Michigan, Ohio, Indiana, Illinois, Kentucky and Wisconsin, will see 337 projects worth $14.8 billion begin construction.

The Rocky Mountains and the Southeast regions are each expected to see significant investment over the next three months, as $6 billion in projects are scheduled to begin construction activities within each region. The West Coast region is expected to fall behind those two regions by only a small amount, with $5.4 billion in projects occurring within its borders, while the Midwest region will be home to another 175 projects worth $4.6 billion. A pair of regions, the Mid-Atlantic and the Northeast, is each scheduled for more than $2 billion in project activity, and the New England region will contribute another $178 million.

All in all, project spending, be it capital or maintenance, is performing well this year. Each quarter is averaging $60 billion in construction activity through the end of the third quarter; hopefully, this level of expenditures will continue into 2013. The second quarter saw the highest level of construction starts thus far in 2012, with more than 1,600 projects worth $84 billion beginning construction, while the first quarter began the year at a slightly slower pace, despite the mild winter, with 1,200 projects worth $35 billion beginning construction. While the third quarter is not expected to be as high in expenditures as the second, it is right on pace with the quarterly average, and if the fourth quarter can at least meet that average 2012, it will have been a very good year when it comes to industrial construction starts.

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.