U.S. to See 15,700 Jobs Created in Second-Quarter 2013, as Close to 200 Plants Become Operational

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Researched by Industrial Info Resources (Sugar Land, Texas)--Jobs have once again come to the forefront in the U.S. as the federal government struggles to deal with the looming automatic spending cuts that will take effect March 1 and will, if allowed to happen, put more than 800,000 workers out on the streets, at least temporarily. That issue, combined with the already-high national unemployment rate, makes any jobs that can be created all the more valuable. Companies are creating new jobs each month by adding to existing workforces, but another method of jobs creation is occurring as grassroot plants complete construction and open their doors for the first time. Looking ahead to the second quarter of 2013, close to 200 such plants are currently scheduled to begin operations in the U.S., which will create more than 15,700 jobs.

Click on the image at right for a graph detailing new plants and employees by industry in second-quarter 2013.

Jobs creation in this manner traditionally follows capital spending trends, and for the last year no region of the country has seen spending improve more than the Southwest region, which consists of Texas, Louisiana, Arkansas and Oklahoma. As spending has increased in this region, so has grassroot project activity. In the second quarter of the year, that activity is expected to create more than 4,600 jobs as these plants begin operations. The Southwest region will be home to the largest concentration of new jobs for the quarter as a result of that spending.

Several other regions are expected to see some significant job activity from grassroot projects. The Mid-Atlantic region will be second only to the Southwest in total new jobs for the quarter, with 3,100 jobs scheduled to be created in April, May or June. The Great Lakes region, which has been steadily recovering from the effects of the recession, will have the second-largest number of new plants begin operations, 34, and the third-largest number of new jobs as a result, more than 2,500.

The largest concentration of jobs will come from the Industrial Manufacturing Industry, which is expected to have 42 new plants begin operations. These plants are expected to create 7,100 jobs for the industry. The Pharmaceutical & Biotech Industry will be home to the second-highest number of new jobs at 4,200, as 21 new plants begin operations, while the second-largest number of plants, 39, will come out of the Food & Beverage Industry and will result in 1,800 new jobs during the quarter. Of the remaining industries, only the Metals & Minerals Industry will see more than 1,000 new jobs for the quarter, with the balance of the industries coming in shy of that mark.

While the 15,700 jobs scheduled to be created as in the second quarter as a result of plant start-ups is certainly good news, the situation could have been much better if 2012 had ended on a more positive economic note for companies. The presidential election last November, combined with the fiscal cliff and debt ceiling issues, have many companies holding off on planned grassroot project activity and spending in general, as they are playing the wait-and-see game as the federal government deals with the economic problems facing the nation. The fact that significant discussion on both the fiscal cliff and debt ceiling have been postponed until late March or early April has not done much to boost confidence among companies that the situation will improve in the near term. Hopefully, the government can lay these issues to rest in the coming weeks and spending as well as jobs creation will improve for the remainder of 2013.

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.