Winter Season Expected to Begin With Bang as $28 Billion in U.S. Project Starts Planned

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Researched by Industrial Info Resources (Sugar Land, Texas)--The winter months are traditionally slower months when it comes to capital and maintenance projects in the U.S. Expecting difficult weather, companies would rather schedule major projects for the spring, when it is easier to do things outdoors. However, this does not mean project work ceases completely. Companies typically attempt to get more work done in the earlier of the cooler months, when the weather has not turned totally unbearable in many parts of the country. To that end, Industrial Info is currently tracking close to 700 capital and maintenance projects with an estimated investment value of more than $28 billion that are scheduled to begin construction activities in October in the U.S.

The Power and Alternative Fuels industries, as they have for much of the summer and early fall are expected to be driving expenditures in October. The Power industry has more than 120 capital and maintenance projects (which are worth $7.2 billion) that are ready for construction during the month, while the Alternative Fuels industry will add another 37 projects worth $6.9 billion. After these two power industries, the drop off in spending is dramatic. The Industrial Manufacturing and Pharmaceuticals & Biotech industries are each expected to see $2.7 billion in total spending for the month, while four other industries, Oil & Gas Transmission, Chemical Processing, Metals & Minerals and Food & Beverage, will each see in excess of $1 billion in spending.

Where this activity is expected to take place is often as important as who is planning the projects. The Great Lakes region, a region that has been working very hard to recover from the effects of the recession, expects to see 110 of those projects at an estimated value of $7 billion begin construction within its borders in October. The Southwest region, home to a significant portion of the project work performed in 2012, is expected to see the most projects, 184, with only a slight decrease in the total value, $5.8 billion. The Mid-Atlantic region, another hot spot this year, is right on the heels of the Southwest region with 60 projects worth $4 billion while the Northeast region is expecting 46 projects worth $3.9 billion to take place within its borders. The Midwest, Rocky Mountains and Southeast regions are expected to each see between $1.7 billion and $2.2 billion in total expenditures during October as well.

The project activity will be led by a trio of multi-billion projects that span three different industries. The Alternative Fuels industry will see the largest single project take place in October with a proposed $3 billion coal-to-liquids plant scheduled to begin construction in West Virginia. The Industrial Manufacturing industry will contribute a $2.3 billion semiconductor plant expansion in New York, while the Power industry is expecting construction to begin on a $1.4 billion sulfur dioxide particulate reduction addition project at a coal-fired power plant in Kentucky. Some of the other projects of note expected to begin construction activities in October include a $950 million power transmission line project in Indiana, an $809 million coal gasification project in Illinois, an $800 million combined-cycle energy center in New Jersey, and a $427 million grassroot lithium carbonate mine and mill in Nevada.

While companies are certainly hoping for a mild winter, such as the one that occurred one year ago, they are planning for harsher weather that may curtail construction efforts. By getting a larger number of projects under way earlier, they hope to avoid any delays such a winter could cause on the construction process. Projects that begin in October, and in some cases early November, have a very good chance of avoiding the majority of whatever difficult weather occurs later in the winter by completing the actual building work so that contractors can spend the rough weather indoors finishing off the interior work. While not all of the $28 billion in planned projects will actually get funded and move to the construction stage this October, a significant portion of them will make it to that point, which will help 2012 end on a positive note with some significant spending occurring in the U.S.

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.