HOUSTON — Manufacturers in the Mid-Atlantic region are expected in 2006 to break ground on the largest increase in industrial project spending in the United States. The Mid-Atlantic region is showing a 38% increase in planned project development vs. 2005, according to market research firm Industrial Information Resources.

Currently, 509 industrial projects totaling more than $26 billion are scheduled to begin construction in the region this year. That's up from 464 projects totaling $19 billion scheduled at the beginning of 2005 to begin construction last year.

Several high-dollar industrial projects are scheduled to begin construction in 2006, including Micron Technology's new $1.2 billion wafer fabrication project in Manassas, Va., and Santee Cooper's coal-fired power plant addition in South Carolina. American Electric Power Co. is scheduled to begin construction in 2006 on more than $1 billion of coal-fired power plant emission-reduction projects at West Virginia power plants.

The Mid-Atlantic region consists of Maryland, North Carolina, South Carolina, Virginia and West Virginia. All the states are seeing increased planned project spending in 2006. Especially notable are Virginia and West Virginia, both of which are experiencing 75% increases in project value. Infrastructure, power and coal mining projects are driving growth in these states.

Gap Measurement shows that project fallout (cancellations and delays) is down from 29% in 2005 to 15% in 2006, indicating improving conditions for project spending for the year.

IIR, a marketing information service company in business for 22 years, provides market intelligence pertaining to the industrial processing, heavy manufacturing and energyrelated industries.