U.S. Southwest Rises to Top for Metals & Minerals Industry Construction Starts in 2014

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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Southwest region is on pace to be the largest region in the U.S. for Metals & Minerals Industry project construction starts in 2014, according to the May 2014 update of Industrial Info's Project Spending Index.

The index analyzes Industrial Info's Metals & Minerals Project Database and compares this year's activity to last year's activity to provide an analysis of growth or retraction in the industry. The index is updated monthly and is available at industrialinfo.com.

For 2014, Industrial Info is tracking $5.3 billion worth of projects in the Southwest region, which includes Arkansas, Louisiana, Oklahoma and Texas, which have started construction or are scheduled to start construction during the second half of 2014. This compares to just less than $4 billion that Industrial Info was tracking for the region in 2013, representing a 32.6% growth in construction starts based on the total investment value of projects.

See table below for a breakdown by region of Metals & Minerals projects with construction starts in 2014.

One of the biggest trends this year for the U.S. Metals & Minerals Industry is the increase in activity in the Southwest, especially in Texas, and the decline in activity in traditionally heavy Metals & Minerals regions like the Rocky Mountains. The main reason for this shift is the decline in mining project spending in the Rockies and the increase in alternative iron and steel projects in the Southwest. For example, Voestalpine Texas LLC, a subsidiary of Voestalpine AG (Linz, Austria), started site preparation in April 2014 for a new direct reduced-iron (DRI) plant in Texas. The $740 million project is one of a growing number of iron and steel projects planned for the Southwest region.

View Project Report - 300112959

The Rocky Mountain region, which led the nation in 2013 for Metals & Minerals project starts with $7.5 billion, has declined 36.6% in 2014, and is now at $4.8 billion for the year. Freeport-McMoRan Copper & Gold Incorporated (NYSE:FCX) (Phoenix, Arizona) is completing a $1.6 billion expansion of the Morenci Copper Mine in Arizona. Construction on the project started in early 2013.

View Project Report - 300027767

The majority of mining projects in the U.S. are located in the Rocky Mountains. In general, mining companies have reduced capex because of waning demand and declines in some commodity prices.

Overall, the U.S. is showing a 5.6% decline in the value of Metals & Minerals project starts for 2014 with $18.4 billion, compared with $19.5 billion during 2013.

US Metals & Minerals Projects to Kick Off in 2014
Market Region	2014 ($Millions)	2013 ($Millions)	TIV Change ($Millions)	% of Growth
Great Lakes	$2,068.60	$2,660.15	-$591.55	-22.2%
Mid Atlantic	$3,032.35	$776.00	$2,256.35	290.8%
Midwest	$409.00	$664.60	-$255.60	-38.5%
New England	$5.50	$3.00	$2.50	83.3%
Northeast	$1,177.55	$1,166.25	$11.30	1.0%
Rocky Mountains	$4,773.10	$7,528.36	-$2,755.26	-36.6%
Southeast	$948.30	$2,232.40	-$1,284.10	-57.5%
Southwest	$5,293.26	$3,992.01	$1,301.25	32.6%
West Coast	$688.00	$468.00	$220.00	47.0%
U.S.A. Total	$18,395.66	$19,490.77	-$1,095.11	-5.6%

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