U.S. Industrial Outlook Improving for 2003

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). In general, 2002 ushered in an era of economic uncertainty, in part due to financial failures of companies such as WorldCom and Enron. This era of uncertainty has caused sluggish business conditions for industrial spending in the U.S.; however, in its recently released 2003 Industrial Outlook Industrial Information Resources (IIR) is projecting improving business conditions as corporate finance is reformed and consumer confidence returns.

One of the pivotal points for the U.S. economy is restoring consumer confidence in the equities market. This will start by holding corporate executives accountable for financial reporting. Since early 2001, all major indices have depreciated. Billions of dollars have been diverted away from the stock market to more secure investments such as money market accounts, treasuries, and bonds. While the stock market is being deflated, corporations are finding themselves at the mercy of bond rating firms such as Moody's and Standard and Poor's. Capital expenditure holds tightly to corporate bonds. Projects lose their justification when interest payments become too substantial.

During 2002, IIR identified over 705 new plant start-ups from grassroot construction and/or plant relocations (previously closed plants restarting with new ownership/new manufactured product). During 2003, IIR is forecasting 735 new plant startups to come online. Industries with the most notable growth in term of new plants startups in 2003, include; food & beverage with 157 plants, industrial manufacturing with 149 plants, and power with 148.

One of the leading industries in capital spending is the pharmaceutical & biotech sector. IIR has identified 29 new plants to start up in 2003 for this sector.

For the past couple of years, capital spending in the Power Industry has reached an all time high. This trend is expected to continue in 2003 as merchant power plant construction begins to peak. IIR is forecasting that capital spending in the power industry will begin to decline after 2003. However, future projections indicate that the power industry could experience another growth period between 2005 & 2010 to meet new demand and to replace the lost capacity from older units nearing retirement.

IIR's 2003 Industrial Outlook provides a complete overview of the industrial market giving you instant access to insightful trends for (13) industry segments, capital & maintenance spending forecast by industry for 2003, and a comprehensive International outlook.

Advantages of the 2003 Industrial Outlook

• Quarterly content updates
• Web-based access
• New, more affordable pricing