U.S. Industrial Manufacturing Industry To Bring Online 115 New Plants During the Third Quarter 2007

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Researched by Industrial Info Resources (Sugar Land, Texas). Now that the long, hot days of summer are upon us, prime construction season is in full swing across the United States. From Maine to California, countless thousands of construction projects are beginning, running full swing or nearing completion. The third quarter of the year, is always a telling one in terms of construction projects coming to fruition. Many projects began construction as winter’s doldrums faded away and are now nearing conclusion. During the coming quarter in the Industrial Manufacturing Industry alone, 115 grassroot plants that are now under construction will reach completion and open doors for business as they begin manufacturing a wide variety of products. These new plants will create 17,600 jobs once the ribbon cutting ceremonies are completed and the machinery is started.

Click on the image at right to view a chart showing the breakdown of new Industrial Manufacturing Industry plants scheduled to come online during the third quarter 2007

As it has for the last decade, the Great Lakes Region of the country will reap the largest benefits from these new plants beginning operation. Of the 115 plants that will finish construction in the coming quarter, 31, or 27%, will reside in the Great Lakes Region. The 4,800 jobs that these plants represent are much needed in a region that has, for half a century, placed many of its eggs in the automotive basket, a basket that has been slowly losing its shape during the last few years.

The Southeast Region will play host to the second largest number of new operational plants within the industry with an even 20, which will account for just over 2,200 new jobs. Third place is held by the Mid-Atlantic Region of the country with 16 new plants and just over 2,000 new jobs. Rounding out the top five regions are the Midwest Region with 14 plants and 1,900 jobs and the Southwest Region at 11 plants and 1,200 jobs.

A closer look at where exactly these new plants will be located shows that the state of Georgia has snuck into the pole position with seven new plants that will begin operation within its borders. These plants represent a modest 1,000 new jobs for the state. Five states are tied at six new plants in this coming quarter. In no particular order, these states are Indiana, Michigan, Wisconsin, Kentucky and North Carolina. In total, these states will add a combined 4,600 jobs. Fourth place’s sole placeholder is the state of South Carolina, which will be home to 5 new plants and 775 new jobs. Tied for fourth is a quagmire of states, 8 all told, that will account for an additional 5,300 new jobs. The fourth place states are Missouri, Texas, Arizona, New York, Illinois, Maryland, Mississippi and Tennessee.

This year’s prime construction period should come to a close with some significant plant start-up numbers if momentum gained in the second quarter, combined with those plants currently expected to open their doors in the third quarter, continues. While plant start-up numbers will naturally decline somewhat in the fourth quarter of this year and the beginning of the first quarter of next, all indications are that this level of construction should continue into 2008 and beyond. To date, Industrial Info is tracking close to 600 plants that are currently scheduled to begin construction in the third quarter of 2007 and beyond. Only time will tell if these numbers remain true, but all indications are that the industry is showing no signs of slowing its momentum in the months to come.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.