Industrial construction to dip, could rebound next year, LED says

Industrial construction, one of the Louisiana economy’s strongest sectors, could become one of the weakest in the near future. But Louisiana Economic Development Secretary Stephen Moret told the Legislature’s Joint Commerce Committee that LED is working on roughly $5 billion to $10 billion in new industrial construction projects that might be announced by the third quarter of next year if the national economy holds up. Moret didn’t discuss specific potential projects; LED typically doesn’t discuss contracts it’s trying to land. Moret says most projections call for a modest national recovery in 2010. However, a sharp decline in industrial construction is almost certain over the next six to eight months, Moret says. Huge projects, like Marathon’s refinery expansion and ExxonMobil’s low-sulfur diesel project, will be ending soon, and few new projects are planned for the first half of next year. For a Business Report story about the drop off in industrial construction, click here.—David Jacobs