SOURCE: Industrial Info Resources

June 17, 2009 06:00 ET

Has the North American Chemical Industry Seen the Bottom? -- A Feature of "Navigating the Currents of Change" on Industrialinfo.com

SUGAR LAND, TX--(Marketwire - June 17, 2009) - Researched by Industrial Info Resources (Sugar Land, Texas) -- The North American Chemical Processing Industry (CPI) hit some very low spots earlier this year, with plant closures experienced across most segments of the industry, multiple bankruptcies, and failed mergers and acquisitions, among many other problems all related to the global economic slowdown and recession. Now the question everyone wants to know the answer to is, "Has the CPI seen the bottom yet?" Despite there being no way to definitively answer this question, we can look at the amount of project activity that has been canceled, placed on hold or delayed until 2010 that were originally planned to take place this year.

As the second quarter nears a close, Industrial Info has identified nearly $3 billion in capital and maintenance projects they have been delayed or rescheduled until next year. In addition, an estimated $780 million originally planned for the second quarter of 2009 was canceled entirely -- nearly twice the amount seen in the same quarter last year. These cancellations and delays were identified as part of Industrial Info's plant and project surveys included in its North American Project Database, which tracks and monitors spending at thousands of CPI sites across North America.

The slowdown has gotten deep enough to effectively delay even the smallest of in-plant capital projects, not just the large expansion or addition plans. Based on current project activity, there appears to be little change for the better in the near future. Spending for the CPI will continue to be stressed through 2009, although the outlook for significant improvements in 2010 appears good.

Click here to join Trey Hamblet, Industrial Info's Vice President for Chemical Processing, in this segment of "Navigating the Currents of Change," or to hear many others covering topics important to industry spending, including trends, outlooks and focus segments.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news. For more information send inquiries to chemicalsgroup@industrialinfo.com or visit us online at www.industrialinfo.com.

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