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2019 Industrial Market Outlook
PRESENTED BY:
Global
Presence
20 locations around
The World
Over
36 Years of
doing
Business
Researching
in
59 languages
Globally
Providing global market intelligence on the industrial market for over 36 years.
Our industry coverage encompasses energy, power industrial processing and heavy manufacturing sectors.
IIR’s Industrial Market Coverage
O & G PRODUCTION ONSHORE AND OFFSHORE OIL & GAS PROCESSING LNG EXPORT TERMINALS, GAS-TO-LIQUIDS
O &G PIPELINES ONSHORE AND OFFSHORE CRUDE OIL, CONDENSATE, GAS & REFINED PRODUCTS
O & G TERMINALS STORAGE FACILITIES, LNG RECEIVING & REGASIFICATION
PETROLEUM REFINING (HPI) REFINERIES, LUBE OIL PLANTS AND ASPHALT PLANTS
CHEMICAL PROCESSING (CPI) PETROCHEMICAL, AGRICULTURAL, INDUSTRIAL GASES, ORGANIC & INORGANIC CHEMICALS
PHARMACEUTICAL & BIOTECH MANUFACTURING FACILITIES AND RESEARCH LABORATORIES
ELECTRIC POWER GENERATION, TRANSMISSION & DISTRIBUTION
METALS & MINERALS MINES, MILLS AND PROCESSING PLANTS
INDUSTRIAL MANUFACTURING DURABLE AND NON-DURABLE GOODS MANUFACTURING
FOOD & BEVERAGE PROCESSING & DISTRIBUTION/STORAGE FACILITIES
PULP, PAPER & WOOD MILLS, FOREST PRODUCTS & CONVERTING PLANTS
ALTERNATIVE FUELS ETHANOL, BIODIESEL, COAL GASIFICATION, FUEL PELLETS
HELPING YOU MAKE SMARTER, FASTER, FACT-BASED DECISIONS IIR’s Journey
Projecting
•Data Quality
•Data Reach, Depth & Breadth
•Global Research Methodology
• Industry Knowledge
IIR’s Customer Commitment
Forecasting
• Statistical Modeling
• Spending Statistics & Indices
Predicting
•Predictive Analytics
Mar
ket
Co
mp
lexi
ty
We continue to challenge ourselves to help our customers navigate through the complexities of today’s markets
2019 Capital & Maintenance: $329.9 Billion, revised down from $334 billion Representing a 0.7% Increase from 2018
6.7% 8.8%
-1.2%
4.2% 5.2%
0.7% -2.9%
U.S. Plant Spending Forecast Soft Landing from Mega-Projects
$ Billions
Industrial plant spending statistics are sourced from IIR’s Top Line Spending Forecast representing all forms of capital and maintenance activity within the (12) industrial markets covered by IIR. Forecasts are updated on a quarterly basis with validation at the plant level.
Tail Winds • Macro Economy Momentum • Consumer Sentiment High • FED Flexibility • NAFTA-TO-USMCA • Rising Oil & Gas Output
Head Winds • Government Shutdown • China Tariffs Hit Home • Rising Costs • 10%+ Correction in Equities • The End of the Expansion • No sign of Labor Relief Y/Y % Change
$278.0
$302.4 $298.8 $311.4
$327.7 $329.9 $320.4
$240
$260
$280
$300
$320
$340
2014 2015 2016 2017 2018 2019 2020
$97.8
$69.7
$103
New Plant Construction
U.S. Shale Revolution Industrial Market Spending Driver
Bakken, Eagle Ford, Permian, Utica
Marcellus, Niobrara
INPUT BENEFICIARIES OUTPUT BENEFICIARIES
6
Drill Pipe Fabrication
Steel Pipe/ Tube Mills
Fracturing Equipment Producers
Proppant Producers
High-Velocity Fluids
Frac Sand Mines
Midstream Processing
Ethylene Capacity
Storage Terminals
Fertilizer Plants
LNG Export Market
Gas to Liquids
Petroleum Refineries
Manufacturing
Electronics
Ceramics
Textile
Micro-LNG Domestic Market
Pipelines
Automotive
Downstream Petrochem
Methanol
Power Generation
Production Field
Still Viable with Low Crude Prices
2,558 Projects @ $182 billion 2007 - 2014
Paints Coatings Chemical Industry
Rubber & Plastic Good
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CONFIDENTIAL - No portion of this presentation may be reproduced without prior written consent. © 2018 Industrial Info Resources, Inc. 1-713-783-5147
U.S. Labor Demand Demographics 2019 & 2020 Industrial Plant CAPX and Maintenance
High Demand Areas include: San Francisco & Los Angeles, CA Metro, Charlotte & Raleigh, North Carolina Metro, Beaumont, Corpus Christi, Dallas, Houston, and Midland/Odessa TX Metro, Baton Rouge, Lake Charles, and New Orleans, LA Metro, Columbus & Toledo, OH Metro, Pittsburgh, PA Metro, Atlanta & Augusta, GA Metro, Detroit, MI Metro, Chicago, IL Metro
20 million + Hours
Top 19 Metros with 20+ million hours
123 Million Hours
121 Million Hours
326 Million Hours
2019+2020 = 1.60 Billion Hours
© 2019, Industrial Info Resources, Inc., 2277 Plaza Drive Suite 300, Sugar Land, Texas 77479
• Economic momentum continues without major disruption
• 2020 could be our downturn year after 10 years of recovery and
expansion – Moderate, Not Recession
• Oil & Gas Midstream markets remain strong – exports grow
• Natural Gas-based industries leverage cheap feedstock
• Consumer spending weakness (2020/2021) impacts specific industries
2019 Industrial Market Forecast Outlook Conclusion …
© 2019, Industrial Info Resources, Inc., 2277 Plaza Drive Suite 300, Sugar Land, Texas 77479
The Gulf Coast will continue to see a deficit in the tens of thousands of workers in any given year over the next 5 years. As craft labor demand continues to grow, so do the deficits in soft crafts (Insulators, Painters, Carpenter and Scaffold Builders)
2019 Industrial Market Forecast Labor Insights Conclusion …
© 2019, Industrial Info Resources, Inc., 2277 Plaza Drive Suite 300, Sugar Land, Texas 77479
Owners and contractors are increasing their training programs for workers and changing their crew mix to allow for more helpers or apprentices Training programs are being re-introduced into the local high schools in many areas to give student other options or opportunities for career paths. Companies are also changing up the compensation models to draw and retain the high skilled labor. Modular builds are coming into play, but not a rate that will change the labor dynamics we are currently seeing.
2019 Industrial Market Forecast Labor Insights Conclusion …
Thank You!
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