Industrial Hotspots: Slight Decline Seen For 2007 Industrial Spending
Looking ahead to 2007, more than 5,400 major projects with a total investment value of $314 billion have been identified to begin construction this year in North America. Using a Confidence Factor derived from past spending performances, Industrial Info is forecasting that $136 billion in project activity will actually take place. The Confidence Factor is the percent change in total investment value from the initial forecast to the actual amount of spending that reaches fruition. In the U.S., $254 billion in activity is scheduled for construction in 2007. Based on a Confidence Factor of 43.5%, it is estimated that $110 billion in spending will actually take place in the U.S.
Eight of the 14 market regions in North America experienced industrial project spending growth in 2006, led by the New England region with 111% growth. Other regions experiencing growth in 2006 include Western Canada with 67.4% growth, Atlantic Canada with 58.7% growth, Great Lakes with 54.8% growth, and the Midwest with 35% growth.