By Jeff Vedders

We recently analyzed US new facility and expanded facility activity for 2003.  There were a total of 5,427 announcements in 2003.  This compares with 6,645 announcements in 2002, 9,679 announcements in 2001 and 11,602 announcements in 2000.  That means there was a 22% drop in activity from 2002 to 2003, and there was a 53% drop in activity from 2000 to 2003.  All announcements represent an investment of $1 million, 50 employees, or 20,000 sq. ft.

Source: Whittaker Associates, Inc. and Conway Data Scoreboard

Of the 6,645 announcements reported for 2002, 2,720 were new facility announcements while 2,707 were expanded facility announcements.

2002 Top New Facility Announcements Analysis

As can be seen below, most of the top industries dropped off in activity from 2002 to 2003.  Computer and electronic product manufacturing leads all categories with a drop off of 44%.  Although much of the new activity is down, there are still a few categories that remain active and are increasing in activity.  Interestingly, after a drop-off of 78% between 2001 and 2002, building, developing, & general contracting (spec properties) is up nearly 96% over 2002 levels.  Truck transportation facilities and wholesale trade, nondurable goods are up over 2002 levels.

2003 New Announcements 2002 New Announcements Percentage Change NAICS Code NAICS Description
479 245 95.51% 233 Building, developing, & general contracting
188 272 -30.88% 421 Wholesale trade, durable goods
156 186 -16.13% 541 Professional, scientific & technical services
146 200 -27.00% 336 Transportation equipment manufacturing
123 142 -13.38% 325 Chemical manufacturing
112 97 15.46% 422 Wholesale trade, nondurable goods
97 122 -20.49% 721 Accommodation
92 130 -29.23% 311 Food manufacturing
92 109 -15.60% 326 Plastics & rubber products manufacturing
69 109 -36.70% 333 Machinery manufacturing
68 91 -25.27% 332 Fabricated metal products manufacturing
58 104 -44.23% 334 Computer & electronic product manufacturing
56 69 -18.84% 331 Primary metal manufacturing
55 48 14.58% 561 Administrative & support services
52 23 126.09% 484 Truck transportation

Source: Whittaker Associates, Inc. and Conway Data Scoreboard

2002 Top Expanded Facility Announcements Analysis

As with the new announcements, most of the top industries dropped significantly in activity from 2002 to 2003.  Printing and related support activity, machinery manufacturing, and wholesale trade, durable goods lead all categories with drop offs of 35%, 34% and 34% respectively.  Categories showing a significant increase include building, developing, & general contracting and truck transportation (558% and 100%).

2003 Expanded Announcements 2002 Expanded Announcements Percentage Change NAICS Code NAICS Description
263 364 -27.75% 336 Transportation equipment manufacturing
185 219 -15.53% 311 Food manufacturing
180 207 -13.04% 325 Chemical manufacturing
171 150 14.00% 541 Professional, scientific, & technical services
152 218 -30.28% 326 Plastics & rubber products manufacturing
133 177 -24.86% 332 Fabricated metal product manufacturing
116 176 -34.09% 333 Machinery manufacturing
107 162 -33.95% 421 Wholesale trade, durable goods
89 129 -31.01% 331 Primary metal manufacturing
80 86 -6.98% 422 Wholesale trade, nondurable goods
79 12 558.33% 233 Building, developing, & general contracting
69 98 -29.59% 334 Computer & electronic product manufacturing
66 73 -9.59% 335 Electrical equipment, appliance & component mfg
64 59 8.47% 337 Furniture & related product manufacturing
58 73 -20.55% 321 Wood product manufacturing
53 73 -27.40% 327 Nonmetallic mineral product manufacturing
51 71 -28.17% 339 Miscellaneous manufacturing
50 77 -35.06% 323 Printing & related support activities
50 25 100.00% 484 Truck transportation

Source: Whittaker Associates, Inc. and Conway Data Scoreboard