As the first two months of 2024 have come to an end, it can provide a glimpse into the insights and predictions that companies such as Collier, RSM, Site Selection Group and Deloitte have released. These insights underscore persistent topics such as inflation, labor market challenges, supply chain robustness, and the expanding footprint of automation technologies within the industrial sector. With these factors in mind, the question arises: Is the industrial sector poised to maintain its upward growth trajectory in capital equipment in the coming months?
Identified Industrial Projects in January and February 2024
Industrial SalesLeads, a leader in delivering industrial capital project intelligence, has identified 1,274 industrial projects for the first two months of 2024. Within these projects, a few noteworthy areas including newly identified capital projects:
Facilities Under New Construction: 447
Plant Modernization Projects: 208
Industrial Facility Renovation: 534
Industrial Facility Expansion: 200
Industrial Facility Relocation: 509
Plant Closing: 43
According to Collier, about 447.3 million square feet were under construction in Q4 2023. They conclude that, “while developers are still completing more industrial facilities than ever, construction starts have fallen…” However, “…developers will focus on build-to-suit projects and specialty facilities including cold storage, manufacturing and data center development.”
Top States with Industrial Projects for January and February 2024
As activity continues across the United States, there are a few States that stand out with widespread activity. These States include California, Florida, New York and Texas. Within these States a wide variety of industries are represented including automotive, steel, pharmaceutical and transportation.
Industrial SalesLeads found that Texas continues with steady growth and CFAN, an aerospace components manufacturer, is proving the economy continues to grow. The Company is planning to invest $40 million dollars for the expansion and equipment upgrades on their manufacturing facility.
MNI recently released a report for the largest aircraft manufacturing sites in the U.S. The report states that there are 224 major companies nationwide. Regionally, 35% are in the West, 35% in the South while the Midwest offers 26% of the aircraft manufacturers.
New York continues to prosper with both Panasonic North America and Micron Technology Inc. Micron Technology is a semiconductor manufacturer and is planning to invest $100 billion for the construction of a 7.2 million sf manufacturing complex. Be sure to get more details on the semiconductor industry with MNI’s top 10 semiconductor manufacturers. You’ll find 7 of the 10 are within the key States discussed.
Data in this article was supplied by Industrial SalesLeads in collaboration with MNI.