Click on the image at right to view a chart showing the breakdown of 1Q07 spending by market region.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, the spending numbers begin taking a dramatic upwards turn as snow begins to melt in parts of North America and serious construction work can begin. 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.
The Great Lakes Region in the United States will be the front-runner in the first quarter in terms of total spending with $1.7 billion worth of capital and maintenance work anticipated to begin construction. The Southeast and Midwest regions will follow in second and third place with $1.6 billion and $1.57 billion in spending, respectively. Rounding out the top five spending regions for the quarter are the West Coast, with $991 million in spending; and the Mid-Atlantic Region, with $922 million.
Some of the projects that will be the foundation for the spending in the first quarter include a trio of DaimlerChrysler (Auburn Hills, Mich.) projects worth a combined total of just over $1.7 billion, Massachusetts Bay Transportation Authority’s (MBTA) (Boston) proposed $669 million New Bedford & Fall River commuter rail extension, and EADS North America’s (Irvine, Calif.) proposed $600 million grassroot aerial refueling aircraft manufacturing plant.
All indications are that the 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.
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