As the first half of 2007 comes to a close, Industrial Info Resources (IIR), a marketing information service, has been tracking over 800 industrial manufacturing projects beginning construction, worth an estimated $28 bn. According to Bloomberg News, manufacturing and spending grew in June at the fastest pace in 14 months.
The IIR ranked areas throughout the U.S.:
1. The Mid-Atlantic Region has the most spending in the second half of 2007 at $5.1 billion. This is mainly due to the proposed $4 billion Dulles Metrorail corridor project, which plans to add 23 miles of rail line in Virginia.
2. The Great Lakes region will see $4.8 billion in industrial investments, particularly in the automobile industry, including two engine plants each costing upwards of $700 million.
3. The Southeast has $4.1 billion in spending; The Midwest has $2.9 billion; and the Rocky Mountains region has $2.6 billion in investments.
IIR's conclusion? Rail and automotive spending combine for the majority of the spending this year, as they have for the last several years. Despite its problems, the automotive sector continues to crank out project work, however, now it is focused on various areas of the continent. When it is all said and done, the Industrial Manufacturing Industry will have had an extremely good year in terms of overall capital and maintenance spending. This second half activity should give the industry the momentum it needs to continue the spending push into 2008.
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