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Industrial Info Resources (Sugar Land, Texas) forecasts that 2020 will be a peak year for utilized labor man-hours in the U.S., surpassing the previous peak of 2015. New labor "hot spots" are emerging, as old ones continue to accelerate labor demand. Among these areas are Lakes Charles, Louisiana, and Corpus Christi, Texas.
Over the past few years, Lake Charles and Corpus Christi have had challenging labor situations, with limited local labor supply due to population and demographic challenges. Industrial Info is tracking more than $32.5 billion in projects that are planned to kick off in the Greater Lake Charles area between now and the end of 2020. Among these are several planned liquefied natural gas (LNG) production plants, including Lake Charles LNG Export LLC's (Lake Charles) plan to construct a plant beginning next year. The facility initially would have a total inlet capacity of 2.6 billion cubic feet per year to produce 5 million tons per year of LNG. In addition, construction of two additional production trains could occur, with construction of the second kicking off in 2020. For more information, see Industrial Info's project reports on Train 1, Train 2 and Train 3.
Also on the books is Lake Charles Methanol LLC's (Houston, Texas) planned coke-to-methanol facility. The plant would process petroleum coke into 1 million metric tons per year of methanol, along with 400,000 tons per year of sulfuric acid. Construction is planned to kick off in the first half of next year and last into 2021. Fluor Corporation (NYSE:FLR) (Irving, Texas) is providing engineering, procurement and construction. For more information, see Industrial Info's project report.
LNG projects also are affecting Corpus Christi's labor market. Cheniere Energy Incorporated (NYSE:LNG) (Houston) has begun construction on Train 3 of its Corpus Christi liquefaction terminal, which is expected to last through 2022. For more information, see Industrial Info's project report.
Also in the Corpus Christi area, Exxon Mobil Corporation (NYSE:XOM) (ExxonMobil) (Irving, Texas) and Saudi Basic Industries Corporation (Riyadh, Saudi Arabia) are planning to construct a grassroot petrochemicals complex. The facility would produce an estimated 3.96 billion pounds per of ethylene, along with monoethylene glycol (MEG), high-density polyethylene (HDPE), and linear low-density polyethylene (LLDPE). The project could kick off construction in the second half of 2019 and last through 2022. For more information, see Industrial Info's project reports on the ethylene unit, MEG unit, HDPE unit and LLPDE unit.
Because of the increased amount of project activity caused by these and other projects in the Corpus Christi area, Industrial Info predicts dramatic labor shortages and strong competition for travelers.
Industrial Info also is seeing strong project activity in the Brownsville and Beaumont areas along the Texas Gulf Coast during this time. With the amount of project activity in Beaumont, Industrial Info predicts the area will require more man hours than at any time in history. Among the project activity in the area is ExxonMobil's possible expansion of its Beaumont Refinery. The project would kick off in 2020 and take about two years to complete. The expansion would involve increasing the refinery's 344,000-barrel-per-day (BBL/d) capacity to 700,000-850,000 BBL/d by adding a third crude unit. For more information, see Industrial Info's project report.
In Port Arthur, Texas, in the same market zone, Motiva Enterprises LLC (Houston) is considering constructing a grassroot petrochemicals complex, which could kick off construction in 2020, taking up to four years to complete.
Several large maintenance turnarounds also are on the books for the area in 2020. Among these is Huntsman Corporation's (NYSE:HUN) (The Woodlands, Texas) first-quarter turnaround of its propylene oxide (PO) and methyl tert-butyl ether (MTBE) unit in Port Neches, Texas. In total, Industrial Info is tracking more than $600 million in maintenance projects planned to kick off in 2019 and 2020 in the Beaumont-Port Arthur area.
In certain areas, Industrial Info expects to see full employment and shortages in many crafts in the coming years, and our Labor Market Forecast can provide guidance on ongoing wage rates for this. In areas where the labor shortage is high and there is an increased need for travelers, recruitment, estimating, sourcing and category managers should use Industrial Info's 90th percentile wage bracket, or in extreme cases the Highest Surveyed Wage (HSW), which is the highest surveyed wage gathered in the past 90 days, and expect to pay the highest per-diems as quantified in Industrial Info's Labor Forecast. The HSW is only available from Industrial Info.
In those with local utilization rates of 75% or greater, employers should expect to pay the 75th percentile and the average per-diem, with expected staff shortfalls. In the metropolitan areas with ample labor supply, employers should expect to pay the 25th or 50th percentile wages without per-diem.
For more information on how to subscribe to Industrial Info's Labor Market Analysis, contact Tony Salemme, Industrial Info's vice president of Craft Labor, at (713) 783-5147.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Over the past few years, Lake Charles and Corpus Christi have had challenging labor situations, with limited local labor supply due to population and demographic challenges. Industrial Info is tracking more than $32.5 billion in projects that are planned to kick off in the Greater Lake Charles area between now and the end of 2020. Among these are several planned liquefied natural gas (LNG) production plants, including Lake Charles LNG Export LLC's (Lake Charles) plan to construct a plant beginning next year. The facility initially would have a total inlet capacity of 2.6 billion cubic feet per year to produce 5 million tons per year of LNG. In addition, construction of two additional production trains could occur, with construction of the second kicking off in 2020. For more information, see Industrial Info's project reports on Train 1, Train 2 and Train 3.
Also on the books is Lake Charles Methanol LLC's (Houston, Texas) planned coke-to-methanol facility. The plant would process petroleum coke into 1 million metric tons per year of methanol, along with 400,000 tons per year of sulfuric acid. Construction is planned to kick off in the first half of next year and last into 2021. Fluor Corporation (NYSE:FLR) (Irving, Texas) is providing engineering, procurement and construction. For more information, see Industrial Info's project report.
LNG projects also are affecting Corpus Christi's labor market. Cheniere Energy Incorporated (NYSE:LNG) (Houston) has begun construction on Train 3 of its Corpus Christi liquefaction terminal, which is expected to last through 2022. For more information, see Industrial Info's project report.
Also in the Corpus Christi area, Exxon Mobil Corporation (NYSE:XOM) (ExxonMobil) (Irving, Texas) and Saudi Basic Industries Corporation (Riyadh, Saudi Arabia) are planning to construct a grassroot petrochemicals complex. The facility would produce an estimated 3.96 billion pounds per of ethylene, along with monoethylene glycol (MEG), high-density polyethylene (HDPE), and linear low-density polyethylene (LLDPE). The project could kick off construction in the second half of 2019 and last through 2022. For more information, see Industrial Info's project reports on the ethylene unit, MEG unit, HDPE unit and LLPDE unit.
Because of the increased amount of project activity caused by these and other projects in the Corpus Christi area, Industrial Info predicts dramatic labor shortages and strong competition for travelers.
Industrial Info also is seeing strong project activity in the Brownsville and Beaumont areas along the Texas Gulf Coast during this time. With the amount of project activity in Beaumont, Industrial Info predicts the area will require more man hours than at any time in history. Among the project activity in the area is ExxonMobil's possible expansion of its Beaumont Refinery. The project would kick off in 2020 and take about two years to complete. The expansion would involve increasing the refinery's 344,000-barrel-per-day (BBL/d) capacity to 700,000-850,000 BBL/d by adding a third crude unit. For more information, see Industrial Info's project report.
In Port Arthur, Texas, in the same market zone, Motiva Enterprises LLC (Houston) is considering constructing a grassroot petrochemicals complex, which could kick off construction in 2020, taking up to four years to complete.
Several large maintenance turnarounds also are on the books for the area in 2020. Among these is Huntsman Corporation's (NYSE:HUN) (The Woodlands, Texas) first-quarter turnaround of its propylene oxide (PO) and methyl tert-butyl ether (MTBE) unit in Port Neches, Texas. In total, Industrial Info is tracking more than $600 million in maintenance projects planned to kick off in 2019 and 2020 in the Beaumont-Port Arthur area.
In certain areas, Industrial Info expects to see full employment and shortages in many crafts in the coming years, and our Labor Market Forecast can provide guidance on ongoing wage rates for this. In areas where the labor shortage is high and there is an increased need for travelers, recruitment, estimating, sourcing and category managers should use Industrial Info's 90th percentile wage bracket, or in extreme cases the Highest Surveyed Wage (HSW), which is the highest surveyed wage gathered in the past 90 days, and expect to pay the highest per-diems as quantified in Industrial Info's Labor Forecast. The HSW is only available from Industrial Info.
In those with local utilization rates of 75% or greater, employers should expect to pay the 75th percentile and the average per-diem, with expected staff shortfalls. In the metropolitan areas with ample labor supply, employers should expect to pay the 25th or 50th percentile wages without per-diem.
For more information on how to subscribe to Industrial Info's Labor Market Analysis, contact Tony Salemme, Industrial Info's vice president of Craft Labor, at (713) 783-5147.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
