Industrial Hotspots: 2008 Industrial Building Seen Rising 21%
Geographically, the market regions receiving the majority of the 2008 project expenditures are western Canada with almost $58 billion, the Great Lakes with $52 billion, the Southwest with $48 billion and the West Coast with $38 billion. Western Canada’s Alberta oil sands development continues to drive massive investment in new and expanding mines, steam-assisted gravity drainage facilities, upgraders, refineries, pipelines, cogeneration plants and terminals, as well as infrastructure and commercial projects to support this development.
The largest project is the $6 billion sturgeon upgrader being planned by Petro-Canada in Edmonton, Alberta. This project could begin construction in late 2008.
Industrial Info reports that in some cases contractors are turning away business or are not bidding on new jobs in order to focus on projects that offer the largest return for the investment. A nationwide skilled labor shortage, equipment availability issues, and engineering and construction cost escalation are constraints that could increase the amount of project fallout in 2008.
Some other industrial hotspots include:
- Alabama: 60 projects, $4.7 billion
Florida: 35 projects, $1.4 billion
Georgia: 39 projects, $1.7 billion
Mississippi: 36 projects, $3.1 billion
Tennessee: 36 projects, $436 million