A sharp rebound in planned industrial manufacturing projects in January is setting up a potential lift in demand for wholesale distributors across industrial, electrical, HVAC and construction supply markets.
Industrial SalesLeads Inc. said it identified 140 new industrial manufacturing projects in January, a 22% increase from December, when activity fell 20% and marked the lowest monthly level reported in 2025.
The Jacksonville Beach, Florida-based firm tracks planned capital spending across North America, including new plant construction, expansions, relocations, and major equipment upgrades — categories that typically generate multi-year purchasing cycles for distributors supplying materials, equipment, and maintenance products.
Upgrades Dominate, Supporting MRO and Equipment Sales
Of the January total, 120 projects involved manufacturing and production facilities. Another 72 were distribution and industrial warehouse projects.
By scope, 76 projects involved renovations or equipment upgrades, 43 were expansions and 29 were new construction. Thirteen plant closings were also recorded.
For distributors, the concentration of renovation and equipment modernization projects is significant. Equipment upgrades often translate into orders for motors, drives, controls, piping, valves, fasteners, safety supplies and maintenance, repair, and operations products — core categories for industrial supply houses.
Expansion projects typically drive demand for material handling systems, electrical components, HVAC systems, building materials and warehouse racking. The 72 warehouse and distribution projects identified in January could also support sales of conveyor systems, storage equipment, and facility infrastructure products.
Regional Activity Aligns with Distribution Strength
Indiana led all states with 14 projects, followed by Texas with 12 and California with 11. Ohio reported nine projects, while Michigan, New York, and North Carolina each had eight. Wisconsin recorded seven. Mississippi and Tennessee each had six, and Alabama had five.
Many of these states are strongholds for regional and national distributors serving automotive, life sciences, semiconductor, and heavy manufacturing sectors. The geographic spread suggests opportunities for distributors with established branch networks in the Midwest and Sun Belt.
Megaprojects Offer Long Term Supply Opportunities
Industrial SalesLeads said they tracked 16 projects in January with estimated values of $100 million or more.
The largest is a planned $4 billion expansion by GlobalWafers America in Sherman, Texas. The semiconductor manufacturer is seeking approval for the project, which would expand U.S. wafer production capacity.
Other major projects include a $1.4 billion processing facility planned in Oak Ridge, Tennessee; a $1 billion aerospace manufacturing and research campus in Long Beach, California; and a $793 million valve and pipe manufacturing expansion in Birmingham, Alabama.
Such projects can generate demand not only during construction but throughout commissioning and ongoing operations, supporting long-term contracts for consumables, replacement parts, and on-site inventory programs.
Balancing Growth and Restructuring
While January’s 13 plant closings indicate continued restructuring in certain subsectors, the overall increase in planned capital investment suggests manufacturers are moving forward with deferred or newly approved projects after December’s slowdown.
For wholesale distributors, the rebound points to a strengthening forward pipeline. Planned capital projects typically translate into purchasing activity months or years after initial announcements, offering visibility into future sales tied to construction, equipment installation, and ongoing facility operations.
Industrial SalesLeads, founded in 1959, provides capital project intelligence and prospecting services to industrial sales and marketing teams. Its January report indicates that, despite broader economic uncertainty, industrial manufacturers are resuming investment — a development that could support distributor revenue growth as projects advance from planning to execution.
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