Great Lakes Region to Invest $27.8B in 1,166 Projects by 2007, with Q1 Plans Up 44% Driven by Power, Manufacturing, and Alternative Fuels

Great Lakes Region of the U.S. is winding down one of its most successful years in capital and maintenance spending. At midnight on December 31, the region will have launched more than $27.8 billion of work across 1,166 projects since January 1, 2006. The region isn’t resting on its laurels as 2007 begins: Industrial Info Resources (IIR) is tracking almost 300 projects worth just over $7.6 billion slated to start in the first quarter— a 44 percent increase over the same period in 2006.

Click on the image at right to view a chart showing the breakdown of 1Q07 project spending for the Great Lakes Region.

January 2007 will start modestly with $840 million of project work expected to commence. February will see spending rise to $1.7 billion, and March will close the quarter with over $5.1 billion of construction underway.

The power sector remains the dominant driver of capital outlay, with $3.1 billion already earmarked for projects. Highlights include a proposed $400 million, 1,191‑MW coal‑fired plant SO₂ control (FGD) upgrade in Wisconsin; a $360 million, 300‑MW wind farm in Illinois; and a $300 million, 1,085‑MW coal‑fired plant SO₂ control (FGD) upgrade in Ohio.

Manufacturing follows closely with just under $1.9 billion in planned spending. Despite a softened automotive sector, the industry continues to invest robustly, with projects such as a $700 million retooling of an automotive machining plant in Ohio, a $170 million phase II expansion of a 6‑speed transmission line in Michigan, and a $137 million expansion of a nickel‑metal‑hydride battery plant in Ohio. Other sectors are also stepping up, notably a $130 million phase II expansion of a photovoltaic cell plant in Michigan.

Alternative fuels have surged, now ranking third with $1.4 billion in planned projects. A trio of grassroots ethanol projects in Illinois—worth a combined $624 million—are slated to begin in Q1, reflecting the growing momentum of the industry in one of the nation’s largest farming regions.

With construction activity beginning early, 2007 is poised to become a banner year for investment. The spring and fall are expected to amplify spending further, as IIR monitors developments across the region, the nation, and worldwide.

Industrial Info Resources is a marketing information service company that has been operating for more than 23 years. IIR is respected as a leader in delivering comprehensive market intelligence for the industrial processing, heavy manufacturing, and energy-related industries worldwide. Visit our website for more information.