Industrial Info's Labor Analytics Tools Guide U.S. Developers

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

It will be difficult to find quality tradesmen to fill the needs of new and continuing industrial projects for the foreseeable future. Industrial Info Resources offers a series of Labor Analytics tools to address this need.

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Where's the Labor?

One of the most persistent problems facing U.S.-based developers of construction projects is the availability of labor. It's not that the talent isn't out there--rather, skilled workers often are already attached to other projects, having found competitive pay and benefits elsewhere. Where can project developers find journeyman-level craftspeople who are proficient in a particular discipline? How will the developers know what kind of pay and benefits they will be expected to offer? And how will the booming market for data centers affect all this?

Large-scale data center buildouts have emerged as a major driver for demand and wages for skilled craft workers. And it's not just the construction of the facilities themselves: Investments in power-generation and transmission & distribution (T&D) infrastructure to support the booming data center market account for a growing share of available workers, as do accelerated investments in semiconductor production.

Altogether, Industrial Info Resources estimates data center developers will spend about $298 billion on projects across various stages of planning and construction in 2026, and about $1.4 trillion from now through 2030. This is creating more demand--and wage competition--for skilled craft laborers, particularly in the "MEP" (mechanical, electrical and plumbing) fields: electricians, instrumentation technicians, plumbers, pipefitters and insulators, among others.

According to Industrial Info Resources data, about 705,000 journeymen-level craftsmen will be needed in 2026--and we are already seeing full employment across most of the U.S. for all journeymen-level trades. Clearly, it will be difficult to find quality tradesmen to fill the needs of new and continuing projects for the foreseeable future; wages for journeyman trades across the U.S. are expected to rise more than 5.5% by 2028.

One solution that has emerged to address labor constraints is modular construction: Instead of building a data center entirely onsite, significant sections of the facility are constructed offsite, then shipped to the new location and installed. This practice typically requires fewer craft workers than onsite construction.

But it's hard to overstate the broader effects of this trend across other industries: The U.S. Energy Information Administration (EIA) estimates new, hyperscale data centers and electrification will spur a 20% growth in domestic electricity consumption by 2030. The biggest challenge will be providing enough dispatchable power to meet this demand, with a key constraint being the T&D lines necessary to connect power-generation assets.

Behind-the-meter power plants have emerged as a means of mitigating this dilemma: These small-scale units supply electricity directly to specific, localized facilities such as data centers, utilizing battery energy-storage system (BESS) capacity to bypass grid delays and manage the extreme volatility of artificial intelligence (AI) workloads. But these projects also are spurring higher demand for craft laborers in the electrical, insulation, pipefitting and other fields.

Industrial Info Resources is tracking 95 active and proposed projects, totaling more than $133 billion of investment, for data centers with modular components in its Global Market Intelligence (GMI) Industrial Manufacturing Project Database. GMI also is tracking 85 projects, totaling more than $167 billion, for behind-the-meter projects. Readers can learn more from a detailed list of reports for modular and behind-the-meter projects.

By the Numbers

• 705,000: Journeymen-level craftsmen who will be needed across the U.S. in 2026
• 13: Number of journeymen-level crafts tracked and analyzed by Industrial Info Resources
• More than 1,000: Number of attendees estimated at Advancing Preconstruction 2026 conference in Phoenix

More than Just Money

One of the most significant drivers of the current labor shortage is the rapid expansion of these data center construction projects. These projects are aggressively recruiting highly skilled trades such as journeymen electricians, I&E (instrumentation & electrical) technicians, I&C (instrumentation & controls) technicians, and pipefitters. In many cases, data center projects are offering wages that exceed those traditionally seen in industrial construction, making them highly attractive to the existing workforce.

Beyond base pay, these projects are appealing due to the long-term and often permanent employment opportunities they provide. Unlike traditional industrial construction work--which is frequently tied to shutdowns, turnarounds, outages, or short-term capital projects--data center work is perceived as more stable and continuous. This stability is a major factor influencing craftsmen's decisions.

Labor retention is paramount to maintaining project timelines and minimizing rework. Wage competition has made it difficult for companies to retain quality craftsmen, especially when benefits packages are similar throughout the construction industry. Retention issues will be one of the hottest topics at the conference.

Developers will have to be creative and proactive in this labor market to keep craftsmen from leaving. Some solutions that companies have deployed to reinforce labor retention include:

• better on-site conditions, such as an on-site cafeteria and installed (instead of portable) restrooms
• additional training during downtime, to keep employees on top of their craft
• raising per diems, in addition raising wages

Get the Tools, Find the Talent

Industrial Info Resources has developed a series of web-based tools that allow users to analyze historical, current and forecasted labor data for a variety of crafts. We allow users to view labor demand, supply, wages and per diem for market regions across the U.S. and Canada to help them get a better understanding of the historical, current and future labor market in their area.

Industrial Info Resources' Labor Analytics tools can help developers bridge the information gap on their projects:

• Labor Overview provides users a detailed view on trends shaping labor demand, supply and wage rates in a specified market region. A simple search by geographical area and craft type offers a three-year forecast for demand growth and total hours needed for the job, as well as local labor utilization rates, year-over-year wage changes, and what surplus or deficit the area will be facing for the immediate future. This tool allows teams to prepare for future projects and plan for harsh labor markets.
• Labor Risk Analysis allows users to identify the most at--risk labor crafts across various regions and territories. By identifying their maximum acceptable increase, users can estimate to what degree wage rates in the area might change across a variety of crafts before their project is set to begin construction. By understanding the future potential wage growth in a prospective area, estimation teams can further refine the risks of prospective projects.
• Labor Supply Search helps users find the best market regions to recruit industrial tradespeople. By simply offering the project's location, needed crafts and schedule users can obtain detailed information on where workers can be found, how many are in the labor supply, and a list of known contractors in each region. Recruitment teams find this tool adds a lot of value by allowing them to focus their efforts in areas that lead to positive expected value.
• Labor Cost Estimator allows estimators and project development teams to estimate labor costs across the life-spans of their projects, based on the most current wage rates and per diem rates for multiple crafts. Users can search by their project's location, schedule and estimated wage rates (using either customized rates or wage percentile) for a breakdown of average labor costs, considering regular time, overtime and per diems.

Another handy tool for users is the GeoLabor Analytics feature, which creates interactive maps that detail supply-and-demand dynamics, wage rate forecasts and utilization rates for craft labor down to the metropolitan region. By plugging in their estimated schedules, locations and labor needs, project developers can sort through results ranging from historical trends to five-year outlooks.

Expertise on Display in Phoenix

The need for detailed labor data on these projects is on display at the Advancing Preconstruction 2026 conference, which is running through Thursday, May 7, at the Renaissance Phoenix Glendale Hotel in Phoenix, Arizona. More than 1,000 attendees will hear from more than 80 speakers on how project developers can find and retain the best workers, while managing expenditures, developing schedules and working with clients.

Anyone visiting can drop by Industrial Info Resources' booth to learn how its web-based, up-to-date labor-data services can grow their business. Our researchers gather quarterly updates on supply and wage data for journeymen-level crafts, including welders, pipefitters, electricians, operators, boilermakers, insulators, scaffold builders, carpenters, millwrights, instrumentation technicians, painters, iron workers and riggers.

Key Takeaways

• The availability of labor is a persistent problem for U.S. project developers, requiring up-to-date information.
• Industrial Info Resources' Labor Analytics tools provide users with the information they need to find the right talent.
• Industrial Info Resources will be on hand at the Advancing Preconstruction 2026 conference to speak with attendees.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).