As the New Year kicks off, individuals and businesses are often full of big ideas and big plans. Some of these plans grow and come to fruition; some don't--hence Industrial Info's Spending Gap Index, which shows the number and value of projects that are planned to start during a calendar year versus what actually kicks off. The projects that are canceled, put on hold or pushed out to a different year make up what we refer as "project fallout."
From January through November this year, Industrial Info has tracked project fallout of about 52.6% in terms of value, although the final end-of-year project figures will probably take this somewhat higher.
So how is 2014 shaping up? At the moment, Industrial Info is tracking 7,760 projects with a combined total investment value $575.8 billion that are planned to kick off in 2014 in North America. This compares to about $480 billion that was planned to kick off in 2013 at this time in 2012--a difference of almost $95 billion. And while not all of this project activity will actually take place due to project fallout, the higher anticipated dollar amount between years is quite substantial.
Source: Industrial Info Resources