Overall spending within the industrial manufacturing industry, which has risen to $51.6 billion in 2006, an increase of 37 percent over 2005’s final spending number of $37.6 billion, will eclipse $10.2 billion in capital and maintenance projects scheduled to begin construction during the first quarter of 2007, an increase of 27.6 percent over 2006, according to a report by Industrial Info Resources (www.industrialinfo.com).
Industrial Info predicts the coming year will start out slowly, as with most years, as companies slow down their construction efforts during the heart of the winter. But as March approaches, spending numbers are expected to begin a dramatic upwards turn as snow begins to melt in parts of North America and serious construction work can resumes. In January, North American spending is anticipated to reach $1.6 billion all total, while in February the number increases only slightly to $1.8 billion. In March, however, spending should jump to just about $7 billion, according to Industrial Info
According to Industrial Info, all indications are that the industrial manufacturing industry’s spending numbers for 2007 will only continue to increase, probably topping those year-end numbers that 2006 will have posted. Despite a struggling automotive industry, which has shown some signs of modest recovery, the industry continues to devote tens of billions of dollars in capital and maintenance spending to North American operations. This should continue through the first quarter and the balance of the coming year, eventually making 2007 the best spending year in recent history.