U.S. Industrial Firms Start $72 Billion of Construction in 2009

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial firms are not letting the economic downturn slow progress on more than 900 major capital and maintenance projects in the United States this year. Industrial Info has identified projects totaling more than $72 billion that have commenced construction in 2009. Projects range from multi-billion dollar, grassroot semiconductor and polysilicon manufacturing plants to million dollar maintenance shutdowns. More than 150 of the projects starting construction this year have a total investment value of $100 million or more.

The top industries for construction this year are Power, with 139 projects totaling $21 billion; Industrial Manufacturing, with 169 projects totaling $19 billion; Pharmaceutical & Biotech, with 163 projects totaling $10 billion; Metals & Minerals, with 68 projects totaling $7 billion; and Food & Beverage, with 127 projects totaling about $3 billion.

Click on the image at right to view a breakdown by industry of U.S. industrial project starts in 2009.

Compared to 2008, the value of project construction starts in 2009 is down 35%, according to Industrial Info's North American Project Spending Index. However, recent signs are pointing to a turnaround. The Dow Jones average reached 10,000 points yesterday for the first time since 2008, adding to industry confidence that the economy is taking a turn for the better. If demand for energy and consumables continues to rise, industrial firms should begin to fund some of the capital expenditures deferred during the past year, which should boost engineering and construction activity in 2010 and 2011.

Sysco Food Services of Philadelphia (Philadelphia, Pennsylvania) is performing a $100 million expansion and modernization project for a food distribution center at its refrigerated distribution warehouse in Philadelphia. Turner Construction Company (Philadelphia) is the design-build firm working on the project.

One of the surprises this year is the jump in the value of construction for the Food & Beverage Industry. Supporting the premise that Food & Beverage manufacturers do well in down economies, the industry has started construction on 127 projects this year, totaling about $3 billion. For example, General Mills Incorporated (NYSE:GIS) (Minneapolis, Minnesota) began construction on the $100 million expansion of a breakfast cereal and snack manufacturing plant in Albuquerque, New Mexico. The company is adding a 165,000-square-foot building for a new health bar and fruit snack production line. This project is scheduled for completion in early 2010.

Other notable industries include the Pharmaceutical and Biotech Industry, which has started 163 projects totaling slightly less than $10 billion this year, and the Industrial Manufacturing Industry, which has started 169 projects with a combined total investment value of $18.7 billion. Information on these and other projects can be found in Industrial Info's North American Industrial Database.

View Plant Profile - 1081668
View Project Report - 042000641

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.