U.S. Southeast Set to See Almost $5.5 Billion in Third-Quarter 2015 Kickoffs, Steered by Auto Plants, Fuel Pellets

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Southeast region, normally one of the biggest spenders on project construction in the nation, seems to be lagging behind most other regions when it comes to the total investment value (TIV) of third-quarter construction kickoffs. Still, the region boasts $5.45 billion in projects planned to begin construction next quarter, according to Industrial Info's project database, with a little more than half of that amount attributed to three industries: Industrial Manufacturing, Alternative Fuels, and Oil & Gas Production.

Click on the image at right for a graph detailing active projects scheduled to kick off in the third quarter of 2015 in the U.S. Southeast by industry.

The Southeast region includes Alabama, Florida, Georgia, Mississippi, Tennessee, Puerto Rico and the Virgin Islands.

The Industrial Manufacturing Industry leads all other industries by a long shot, with more than $1.6 billion in Southeastern projects set to begin construction in the third quarter. A sizeable chunk of that, about $500 million, is attributed to Mercedes-Benz North America's (Montvale, New Jersey) expansion of a sports utility vehicle plant in Vance, Alabama. For more information, see May 18, 2015, article - U.S., Canadian Auto Sectors to See $2.6 Billion in Projects Begin Construction in Third-Quarter 2015.

Another major Industrial Manufacturing Industry project is Majestic Realty Company's (Los Angeles, California) $120 million construction of a grassroot distribution center in Atlanta, Georgia. The 2.8 million-square-foot facility is expected to support regional operations for Majestic Realty, which is the largest privately held developer and owner of master-planned business parks in the U.S., according to the company's website. It is expected to be completed in the third quarter of 2016.

The Alternative Fuels Industry has the second-strongest showing of any industry, with $725 million in projects set to kick off from July through September, including Geechee Energy LLC's (Mount Pleasant, South Carolina) $70 million construction of the Ogeechee River Pellet Mill in Millen, Georgia. The facility, which is expected to produce 360,000 metric tons per year of fuel pellets, involves the construction of a production building and the installation of multiple pellet machines that will process wood shavings, forest residue and land clearing material. Ogle Engineering and Construction LLC (Pittsburg, Texas) is performing design-engineering services for the project, which is expected to wrap up in third-quarter 2016.

The Oil & Gas Industry is in third place with $604 million in projects set to begin construction in the third quarter, although almost all is attributed to a single offshore project: Deep Gulf Energy Companies' (Houston, Texas) $600 million subsea tie-back in the Gulf of Mexico's Kodiak Field. For more information on the project, which is set to be completed toward the end of the year, see May 28, 2015, article - U.S. to See $71 Billion in Projects Begin Construction in Third-Quarter 2015, Led by Natural Gas.

The Power Industry, which normally ranks in the top three for project spending, leads all the remaining industries with $590 million in Southeastern projects expected to kick off in the third quarter. Gestamp Renewables' (Madrid, Spain) construction of a solar photovoltaic (PV) station in Morovis, Puerto Rico, accounts for $120 million of that total. The 33.5-megawatt project will utilize fixed-tilt polycrystalline PV panels. Atlantic Bearing Services LLC (Hialeah, Florida) is performing EPC services on the project, which is set to be completed in third-quarter 2016.

More than half of the region's TIV--$3.1 billion--is related to 56 projects that are now in the engineering stages. The region also has 82 projects worth nearly $2 billion in the planning stages, where plenty of factors could increase, decrease or eliminate the expected spending, while 164 projects worth about $383 million already have kicked off the first stage of construction and will kick off the second in the third quarter.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, 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.