Wisconsin Spending to Drop Slightly in 2006

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Researched by Industrial Info Resources (Sugar Land, Texas). Wisconsin has been nothing if not consistent, in terms of industrial capital and maintenance spending, since the beginning of the new millennium. Each year, spending has been on the increase, albeit slightly, with the exception of 2002 and now 2006 as well. While not as robust as some of the other states in the Great Lakes region in terms of annual spending, Wisconsin does its part to help form the backbone of the nation’s largest spending region. In 2006, spending is projected to reach $1.9 billion for the state, a slight decrease over 2005’s $2.2 billion in total spending.

Click on the image at right to view a chart showing spending by industry.

Gap measurement shows the 2005 project fallout for the state of Wisconsin was rather high, hovering around 30% for the year. Currently in 2006, project fallout is starting the year at a much slower pace, around 6%. This will undoubtedly increase as the year progresses, but it should not reach 2005’s high percentage. With gas and oil prices still hovering around record levels, companies are being forced to postpone the more risky expansion projects and stick to projects geared to keeping operations running at peak efficiency.

Click on the image at right to view the Gap Measurement Chart

As with most years, the big 3 spenders are going to be tops once again in 2006. The Power industry is leading the way with an estimated $1.15 billion in projects expected to begin construction during the year. Power is followed by the Industrial Manufacturing industry with spending of $308 million and the Pharmaceuticals/Biotech industry with spending projected to reach $243 million.

Some examples of this spending are the proposed $300 million 1,080-megawatt combined-cycle addition 540 MW phase II, a proposed $150 million research park expansion, a proposed $100 million grassroot 60-99-megawatt Cedar Ridge wind farm, and a proposed $100 million tissue machine addition.

Despite its lower annual spending numbers when compared with its neighbors such as Illinois and Ohio, Wisconsin has always remained steady in terms of annual spending. This year appears to be no different then years past, with the state garnering significant spending numbers once again. As the year progresses, Wisconsin will continue to chug along without the flash and fanfare of some of its colleagues, but regardless when it is all said and done, Wisconsin can be counted on to produce year in and year out.

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Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.