U.S. Scheduled to See $182 Billion in Grassroot Projects Begin Construction in 2013

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Researched by Industrial Info Resources (Sugar Land, Texas)--Grassroot project spending is a key aspect of annual expenditures from companies in the U.S. During the recent Great Recession, this type of spending slowed; however, in the following years, it has begun to ramp up and again become a significant factor in annual spending. While many companies have taken a more cautious approach to overall spending, grassroot projects have become vital to opening new areas of the country to production of products. Looking ahead to activity planned for 2013, Industrial Info is currently tracking 888 grassroot projects worth an estimated $182 billion that are scheduled to begin construction during the year in the U.S.

Click on the image at the right for a graph detailing grassroot projects that are scheduled to begin in the U.S. in 2013.

The bulk of these grassroot projects are planned within two key industries: the Power Industry and the Alternative Fuels Industry. The Power Industry, which has become a major player in all types of construction in the U.S., is currently planning more than 260 grassroot projects worth an estimated $70.7 billion in 2013. The Alternative Fuels Industry has an additional 134 grassroot projects worth $50.4 billion on the books for this year; however, that number may significantly decrease as 2013 progresses, given the downturn this industry has been working its way through over the last year.

The Oil & Gas industries have been hot-button topics over the last several years, and their planned grassroot expenditures for 2013 show that they will continue to be a focal point in the U.S. The Oil & Gas Production Industry has 23 grassroot projects worth $16.2 billion in the plans for 2013, while the Oil & Gas Transmission Industry is planning another 159 projects worth $13.7 billion. If you add in the 14 Terminal Industry projects with an estimated $1.7 billion and the 12 Petroleum Refining Industry projects worth another $1.5 billion, you have a significant block of grassroot projects in the works, all aimed at developing oil and gas reserves.

The Metals & Minerals Industry is another powerful player in the grassroot projects' world and traditionally has a significant number of projects planned each year. In 2013, it is starting off the year with 96 projects worth an estimated $13.5 billion on the books, but those numbers could certainly increase as the year moves forward. The Industrial Manufacturing Industry, which traditionally is a significant player as well, is experiencing a downturn in grassroot spending and has been for over a year. Companies within this industry are very susceptible to changes in the economy and "fiscal cliff" issues, which have made them leery of planning additional grassroot project activity in the new year until more stability can be found in these areas.

A closer look at where grassroot activity is planned for 2013 shows that four regions of the country will be home to the lion's share of the spending in this area. The Southwest region, which consists of the states of Texas, Louisiana, Arkansas and Oklahoma, will take first prize if all of its 143 projects worth $39.3 billion reach the construction stage during the year. The Rocky Mountains region is giving chase to the Southwest with another 119 projects worth $32 billion on the books, while the Great Lakes and West Coast regions are each expecting more than $29 billion in grassroot activity within their respective borders. The Midwest and Southeast regions will each see more than $13 billion in grassroot activity as well by year's end.

While not all of the grassroot projects currently planned will actually make it to construction in 2013, a significant number of them will. Much will depend on how Congress addresses the debt limit issue in a few weeks. As long as the overall economy in the U.S. continues to recover, the country should continue to see significant grassroot project activity. Hopefully, the majority of the projects already planned will make it to construction while additional new projects are added to the list in the months to come. 2013 could be a banner year for grassroot activity if the cards fall in the right way, which would go a long way to keeping the economic recovery on track.

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.