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Chemical Plant Contractors See Boon

Wednesday, August 3, 2011

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Increased expansions, maintenance and additions have the chemical processing industry spending “significantly” more this year on services by third-party trades and contractors, especially along the U.S. Gulf Coast, new market research shows.

The chemical processing industry “has improved significantly this year in regard to both project numbers and total spending” throughout the United States and Canada, reports Industrial Info Resources (IIR), of Sugar Land, TX, which provides global market research for the industrial process, heavy manufacturing and energy markets.

 Chemical plant

 Wikimedia Commons

Chemical plant projects involving third-party contractors grew to $4.5 billion in North America by mid-year.

“While spending across the industry looks promising, the CPI companies with plant locations along the U.S. Gulf Coast region are posting some of the most impressive results, especially for planned expansions and major additions,” IIR reports.

$4.5B in Projects

Some of the largest projects scheduled for construction in the Gulf Coast region this year include those by The Dow Chemical Co., of Midland, MI; Westlake Chemical Corp., of Houston, TX; and Air Products & Chemicals Inc., of Allentown, PA.

The industry “has enjoyed a healthy increase in project activity and overall spending for capital and maintenance projects this year,” reaping gains for third-party contractors, including engineering and construction firms, general contractors, engineers, architects, and related trades and services, the company says.

At the beginning of this year, the chemical processing industry had selected third-party contractors to begin about 277 capital and maintenance projects worth nearly $3.2 billion in 2011. By the halfway point in the year, those numbers had increased to more than 360 projects valued at $4.5 billion, IIR said.

   

Tagged categories: Chemical Plants; Contractors; Maintenance coating work; Market research

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