In the coming weeks, as the snow melts and the ground thaws, the prime construction season will begin in the Great Lakes region. This spring, more than $20 billion worth of project activity is scheduled to begin construction during the first part of the construction season during the second quarter. This construction will be much heralded, coming on the heels of the sharp decline in residential building. The additional jobs that this season brings are much needed in the region.
Illinois and Indiana will be the frontrunners, at least during the first part of the coming construction season, in terms of total project activity. Between the two states, more than $13 billion worth of industrial project activity will take place. Chief among the projects beginning during the second quarter is the proposed $3.7 billion grassroots coal-to-SNG (substitute natural gas) project in Indiana. Construction on this mammoth project is currently scheduled to begin in June 2008 with completion three years down the road. In Illinois, the proposed $750 million grassroot 280- to 600-megawatt (MW) windfarm will lead the way. Construction on this project is also expected to begin in June 2008 with completion slated for early 2009.
Ohio and Wisconsin will add $4.6 billion to the spending mix followed by Michigan with $1.5 billion and Kentucky at $850 million. Some of the major projects in these states include the proposed $1 billion grassroot Lawrence Energy Center coal-to-liquids plant in Ohio, the proposed $875 million 300 MW Nelson Dewey coal/biomass #3 addition in Wisconsin, the proposed $366 million Jefferson North assembly plant expansion in Michigan and the proposed $100 million grassroot fuel ethanol plant in Kentucky.
The Alternative Fuels Industry is once again driving spending with in the region in the early part of 2008's construction season. Currently, $10 billion worth of project activity can be attributed to that industry during the second quarter. As with most years, the Power Industry is also making a strong showing during the quarter with just under $6 billion in project activity. The Metals & Minerals Industry is a distant third for the quarter at $1.3 billion in construction starts while the Pharmaceuticals/Biotech Industry and the Industrial Manufacturing Industry round out the top five spending industries with $1.2 billion and $980 million in spending, respectively.
This may be the last summer we see this kind of spending within the Great Lakes region for some time. The Alternative Fuels Industry is beginning to correct itself with spending slowing down after its very fast start last year. The Industrial Manufacturing industry continues to decline in total spending within the region as the automotive industry continues its reorganization that began in 2006, and the Power Industry should also begin to slow down as a result of declines in other industries, as well as recession fears that have begun to affect spending. Provided that all of the aforementioned project work actually begins construction during this summer, this could be the last summer of mega-spending within the region for several years. However, spending, especially within the Great Lakes region is nothing if not cyclical and spending will certainly rebound.
To learn more visit www.industrialinfo.com.
Industrial Info Resources (IIR) is a marketing information service specializing in industrial process and energy related industries with products and services ranging from industry news, forecasting, plant and project databases, as well as multimedia advertising campaign assistance.
