Released January 20, 2020 | SUGAR LAND
en
SUGAR LAND--January 20, 2020--Researched by Industrial Info Resources (Sugar Land, Texas)--Skilled craft labor-demand hours required for construction and maintenance in the U.S. will increase to more than 775 million hours from 2021 through 2023.
The U.S. Gulf Coast (USGC) region is forecasted to peak in 2020 at 159 million hours.
For 2020, Industrial Info estimates annual capital and maintenance spending for the U.S. industrial plant population to be $339.45 billion. This represents a $4.34 billion increase in spending from 2019.
While the downturn in the Oil & Gas Industry in 2015 pushed companies to re-evaluate project investments, the uncertainty coming from the 2016 presidential election created a wave of projects that were pushed out or cancelled. Today, industrial construction and maintenance remains at an all-time high, with 2020 forecasted at $56.72 billion in the Gulf Coast Region.
Four years later, as we enter into another presidential election with a better economic position, business investments and global markets should begin to rise or improve with the United States-Mexico-Canada Agreement (USMCA) being ratified and settling China trade disputes. Going out to 2023, mega-sized projects in the petrochemical sector, along with the liquefied natural gas (LNG) and natural gas liquids (NGL) export sectors, are positioned for the next phase of growth.
Wage movement has slowed slightly, but the overall average base wage rate has continued to rise. Companies are utilizing various incentives to keep wage rates from escalating too quickly. These include paying enticements, such as higher per diem or per diem paid at seven days; job completion or hourly work incentives; and safety incentives. Contractors and owners also are looking at ways to improve the job site experience for the workers, such as better work conditions; parking and transportation to and from the job site; and work schedules to help retain personnel.
While some projects are deferred, labor demand constraints have yet to be resolved. There still is a tremendous deficiency in the skilled workforce, which continues to shrink as workers leave due to age, health, retirements or other reasons. Although some companies and owners are donating funds to local colleges to assist in the creation of technical training courses, the lack of participation from millennials and other college-age candidates, as well as a lack of graduates from skilled trade schools, compound the deficit in the local workforce.
Labor and other issues will be discussed at Industrial Info's upcoming Industrial Market Outlook & Networking Event, which will be held January 23 at the George R. Brown Convention Center in Houston, Texas. The event will place a special emphasis on projects in the U.S. Gulf Coast region, where Industrial Info is tracking more than $380 billion in active projects in the zones from Brownsville, Texas, to Pascagoula, Mississippi, including more than $166.4 billion worth that are set to start construction from now until the end of 2021.
Industrial Info's industry experts will be providing presentations about the overall global and North American markets, Chemicals, Power, Petroleum Refining, and the oil and natural gas sectors.
Registration for the event begins at 3 p.m., and the presentations will run from 4 p.m. to 6 p.m.
Sponsors of the event include HILCO, Dräger, LGH, Deep South, Mutual of Omaha CIT and Air Products.
While there's still time to reserve a place at the event, space is limited, and reservations will be provided on a first-come, first-served basis. The event is complimentary. Click here to learn more or to RSVP. See you January 23!
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.
The U.S. Gulf Coast (USGC) region is forecasted to peak in 2020 at 159 million hours.
For 2020, Industrial Info estimates annual capital and maintenance spending for the U.S. industrial plant population to be $339.45 billion. This represents a $4.34 billion increase in spending from 2019.
While the downturn in the Oil & Gas Industry in 2015 pushed companies to re-evaluate project investments, the uncertainty coming from the 2016 presidential election created a wave of projects that were pushed out or cancelled. Today, industrial construction and maintenance remains at an all-time high, with 2020 forecasted at $56.72 billion in the Gulf Coast Region.
Four years later, as we enter into another presidential election with a better economic position, business investments and global markets should begin to rise or improve with the United States-Mexico-Canada Agreement (USMCA) being ratified and settling China trade disputes. Going out to 2023, mega-sized projects in the petrochemical sector, along with the liquefied natural gas (LNG) and natural gas liquids (NGL) export sectors, are positioned for the next phase of growth.
Wage movement has slowed slightly, but the overall average base wage rate has continued to rise. Companies are utilizing various incentives to keep wage rates from escalating too quickly. These include paying enticements, such as higher per diem or per diem paid at seven days; job completion or hourly work incentives; and safety incentives. Contractors and owners also are looking at ways to improve the job site experience for the workers, such as better work conditions; parking and transportation to and from the job site; and work schedules to help retain personnel.
While some projects are deferred, labor demand constraints have yet to be resolved. There still is a tremendous deficiency in the skilled workforce, which continues to shrink as workers leave due to age, health, retirements or other reasons. Although some companies and owners are donating funds to local colleges to assist in the creation of technical training courses, the lack of participation from millennials and other college-age candidates, as well as a lack of graduates from skilled trade schools, compound the deficit in the local workforce.
Labor and other issues will be discussed at Industrial Info's upcoming Industrial Market Outlook & Networking Event, which will be held January 23 at the George R. Brown Convention Center in Houston, Texas. The event will place a special emphasis on projects in the U.S. Gulf Coast region, where Industrial Info is tracking more than $380 billion in active projects in the zones from Brownsville, Texas, to Pascagoula, Mississippi, including more than $166.4 billion worth that are set to start construction from now until the end of 2021.
Industrial Info's industry experts will be providing presentations about the overall global and North American markets, Chemicals, Power, Petroleum Refining, and the oil and natural gas sectors.
Registration for the event begins at 3 p.m., and the presentations will run from 4 p.m. to 6 p.m.
Sponsors of the event include HILCO, Dräger, LGH, Deep South, Mutual of Omaha CIT and Air Products.
While there's still time to reserve a place at the event, space is limited, and reservations will be provided on a first-come, first-served basis. The event is complimentary. Click here to learn more or to RSVP. See you January 23!
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.
