U.S. Power Industry Looking at $47 Billion in Active Projects for 2005

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Power generation companies and developers in the U.S. are currently evaluating in excess of $47 billion worth of capital and maintenance project work, that could begin construction in 2005. A study prepared by Industrialinfo.com for its presentation at the 2005 Electric Power conference and exhibition currently taking place in Chicago, indicates that there are 883 projects that have started or are scheduled to start construction in 2005.

The study began by looking at an initial data set of 1,279 projects, worth $149 billion, which were scheduled to begin construction in 2005, and found that as of April 2005, 396 projects or $102.7 billion had fallen out due to project cancellations or postponements. The study is based on all U.S. capital and maintenance projects valued at $1 million and greater, including grassroot construction, plant expansions, unit additions, environmental upgrades, and capital equipment upgrades.

Click on the image at right to see a breakdown of the study.

2005 Update Results:

- Active: 883 projects, representing $47.2 billion
- Cancellations: 178 projects, representing $43.39 billion
- On-Hold: 56 projects, representing $11.62 billion
- Delayed: 162 projects, representing $47.72 billion

Not all of the currently active $47 billion in projects will actually take place this year. According to Britt Burt, Power Industry Manager for Industrialinfo.com, "We expect about half of the current $47 billion in active projects to be cancelled or delayed due to permitting or market reasons, before the end of the year. Industrialinfo.com is forecasting that by the end of the year, the industry will have spent around $24 billion. This is up 18.6% from 2004, which experienced about $20 billion in capital and maintenance spending. We will continue to monitor the situation closely."

Click on the image at right to view the 2005 Power Industry Project Spending Forecast Chart.

For the past twenty-one years, Industrialinfo.com has specialized in monitoring industrial project spending trends based on our monthly project surveys and planning, engineering, and construction (PEC) project activity reports. For the past several years, Industrialinfo.com has monitored trends in project cancellations, delays, and on-hold activity to determine the true picture of the Power Industry.

Industrialinfo.com is the leading provider of global industrial and energy market research. We specialize in helping companies maximize their sales and marketing efforts, by providing real-time dynamic information solutions, covering project spending, plant expansion, new construction, plant/maintenance activities, news, radio, trends, maps, contact lists, analysis, and forecasting.