Pumps and Systems, January 2007
Within the overall $25 billion pump industry, several market sectors are currently experiencing very active periods. According to Industrial Info Resources (Sugar Land, TX), there are currently 90 new plants under construction in the food and beverage industry, 84 in the pharmaceutical and biotech sector, 82 in alternative fuels, and 79 in the power industry.
This activity is reflected by the investments occurring within specific market sectors, such as:
Hydrogen
The growing demand for additional hydrogen capacity continues, on top of the new capacity already added over the past three years, according to Industrial Info Resources (Sugar Land, TX). 33 capital projects in the U.S. and Canada, worth a combined total investment value (TIV) of nearly $952 million, are planned for construction during 2007 and 2008.
A large percentage of this new capacity will be used by petroleum refiners to produce low sulfur content fuels and also in manufacturing processes by the Chemical Processing Industry (CPI). $634 million of these new investments are concentrated in the Great Lakes, Southwest and West Coast market regions where demand from refining markets continues to increase.
Biodiesel
The biodiesel industry projects over $2.4 billion in capital spending during the next two years. The U.S. currently has 26 large commercial-scale biodiesel plants that produce150 million gallons annually, but 20 new biodiesel plants are currently under construction that could increase production to nearly 500 million gallons by September 2007. Another 50 plants are in various stages of pre-construction and should add another 2.9 billion gallons annually by 2008.
Oil & Gas
93 proposed oil and gas pipeline projects, worth approximately $11.3 billion, are planned for construction in the U.S. in 2007. These projects involve the transportation of natural gas, crude oil, refined products, NGLs and other products. 41 of these projects (approximately $1 billion) involve new and expansions of existing compressor stations. This is the highest level of pipeline spending activity seen to date in the U.S.
$6.3 billion of this spending is in the Rocky Mountain region, to export increasing natural gas production in the region to markets in the Midwest and the Northeast. $900 million of the total spending is in the late stages of engineering, while $4.7 billion is in various permit stages with states and the federal government.
Chemical Processing
North American chemical processing construction is currently projected at approximately $4.1 billion, with the largest project being a uranium enrichment plant in New Mexico. Another 14 projects, worth $130 million, are also planned in the Southwest. Nearly $380 million in capital and maintenance spending is planned in petrochemicals, plastics, resins, and specialty chemicals, including a new $125 million carbon black plant planned in California.
Pulp, Paper and Wood
Across the country, 162 proposed capital and maintenance projects, valued at $2.8 billion, are scheduled to begin construction this year. Three of the top three projects are a new $200 million oriented strand board plant, a new $140 million engineered wood products mill, and a new $75 million laminated flooring plant. All three plants are located in the Southeast region.
Summary of Findings
According to the latest overall data for 2005 from the Census Bureau of the U.S. Department of Commerce, the value of shipments for pumps (except vacuum pumps), including parts, rose from $5,720.2 million in 2004 to $6,367.3 million in 2005, an increase of 11 percent. Vertical turbine pumps (except drivers) increased in value of shipments in 2005 by 7 percent, from $244.3 million in 2004 to $260.6 million.
Domestic water systems, including drivers, decreased 18 percent in value of shipments for 2005, from $463.3 million in 2004 to $379.6 million. Domestic sump pumps, including drivers, increased in value of shipments by 11 percent in 2005, from $200.9 million in 2004 to $222.6 million.
Oil-well and oil-field pumps greatly increased in value of shipments for 2005, from $366.2 million in 2004 to $448.0 million, an increase of 22 percent. The value of shipments of parts for pumps made by manufacturers of complete pumps increased 10 percent in 2005, from $1,131.2 million in 2004 to $1,242.4 million.
And now, here are the numbers, by detail.
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