Indiana’s Capital and Maintenance Spending Soars in 2008, Fueled by Alternative Fuels and Power Sectors

Indiana has long been a stronghold of steady capital and maintenance investment. In the second half of 2007, the state attracted more than $7.5 billion in construction projects, and despite a national recession, that momentum has continued into 2008.

Industrial Info reports that more than $6.9 billion of project work is scheduled to begin in the state during the second quarter of 2008—only slightly below the $7.5 billion spent in the previous year’s latter half. Click the image for a detailed breakdown of Q2 2008 industrial project spending.

The surge is driven largely by the Alternative Fuels industry. In Q2 alone, the sector is set to launch $5.4 billion of new construction, the largest contribution from any industry in the state for the period. The flagship project is a proposed $3.7 billion grassroot coal‑to‑SNG (substitute natural gas) plant slated to start in June.

Power remains a traditional powerhouse, with $830 million in construction starts projected for the quarter. Other major contributors include Pharmaceuticals & Biotech ($330 million), Metals & Minerals ($120 million), and Food & Beverage ($114 million).

Additional high‑profile projects set to begin this summer include a $640 million grassroot 400‑MW Fowler Ridge windfarm, three $200 million fuel ethanol plants, a $150 million pharmaceutical distribution center, and a $57 million metal stamping and assembly plant.

With an expected $4.7 billion of spending in the third quarter, Indiana’s construction calendar suggests the state will continue to weather the economic downturn robustly, positioning itself for a strong rebound as the broader economy recovers.

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