U.S. Industrial Manufacturing Industry Planned Fourth-Quarter 2012 Construction Starts at $2.2 Billion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Thanks to a very mild winter, the Industrial Manufacturing industry began 2012 with some very solid spending in the U. S. Companies got started earlier than expected with their annual spending as the weather cooperated across most of the U.S. However, things began to slow down in the third quarter thanks to economic uncertainty, a housing market that remains weak, economic problems in Europe and a slowing economy in China. That trend is expected to continue into the fourth quarter this year as Industrial Info Resources is only tracking $2.2 billion in construction starts within the U.S. Industrial Manufacturing industry.

While this is certainly not the total amount of spending that will occur within the industry by year's end, the overall total is not likely to increase by much when it is all said and done. The fact that 2012 is a major election year has not helped issues either. Both parties in Washington, D.C. are more concerned with campaigning for control of the White House and Congress than passing legitimate legislation that may help business increase spending in the U.S., and that will not change until the election process is completed and the new administration takes control at the beginning of the year.

However, money is still being spent all across the country in the industry, albeit at a slower pace than previous quarters this year. The Mid-Atlantic region is poised to lead the way in total construction starts with $736 million in projects currently scheduled to begin construction activities in the months of October, November or December. The Great Lakes region, the region with the most total projects, will also see some significant spending with $607 million in projects beginning construction during the quarter.

The Southeast region and the Southwest region, both regions that have seen significant growth over the past several years, are expected to see a smaller level of investment during the final quarter of the year. The Southeast region is slated for $424 million worth of Industrial Manufacturing projects to begin construction, while the Southwest will see another $214 million in capital or maintenance spending. The Midwest region will also be home to a decent amount of project activity with thirty capital or maintenance project worth $147 million beginning construction.

All total some 306 capital or maintenance projects are currently scheduled to begin construction activities in the Industrial Manufacturing industry in the U.S. during the fourth quarter. Many of these are maintenance related as December is traditionally the time that Industrial Manufacturing companies shut down their plants for semi-annual or annual routine maintenance programs. Traditionally, this occurs around the Christmas break each year as well as during the July 4th holiday during the summer months. In 2012, many companies suspended or canceled their July maintenance shutdown's due to production requirements being higher than expected this year.

Overall, the Industry is taking more of a wait-and-see attitude to spending to end 2012. The election and resulting power shifting will play a key role in how the industry allocates capital and maintenance money in 2013 and companies are waiting to see what changes in planned expenditures will be necessary once those political changes have occurred. Spending is likely to increase once again as 2013 begins, depending on how harsh a winter the country experiences. The recent increases in oil and gas prices have also played a role in expenditure plans for some companies as gas prices are hovering around the $4 per gallon mark once again in many parts of the country. Hopefully oil and gas prices will stabilize once again and the political situation will settle down in the coming months and Industrial Manufacturing companies can get back to spending once again.

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.