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Energy construction jobs booming as more than $100 billion in new building planned
Fuel Fix ^ | September 18, 2013 | Emily Pickrell

Posted on 09/18/2013 12:06:38 PM PDT by thackney

Downstream capital spending projected to hit $100 billion over the next three years will create labor shortages, especially in skilled trades, panelists said at a conference Wednesday morning .

The Gulf Coast will see much of that spending — and the tight labor market — as companies build or expand refineries, chemical plants and pipelines, speakers told oil and gas leaders at a forum sponsored by the research firm IHS.

But the labor demand will not approach the heyday of 2007, characterized by relentless recruitment wars between companies and double-digit wage inflation. speakers said. Wage growth for skilled trades probably will be in the 5 percent to 6 percent range through 2016, as continuing economic weakness in other labor sectors mitigates the downstream building frenzy.

The Texas Workforce Commission estimates that there were 267,000 workers in Texas in the oil and gas sector by the end of 2012.

“We do not believe we will be returning to the tight labor market of 2007,” said Laura Hodges, director of IHS, noting that the global labor market is helping to take some pressure off labor demands on the Gulf Coast.

For the international energy workforce, China, Brazil and Australia continue to be the hottest areas of competition. Energy labor growth in other formerly popular areas, including the United Kingdom and India, have begun to cool off. Canada, the United States and Germany are potential areas of growth for energy labor, but it is too early to forecast a trend, Hodges said.

More than two million construction jobs were lost during the recession, but these will return by 2017, Hodges said.

“But we still have a lot of surplus workers out there right now,” Hodges said.

Texas’ unemployment rate is 6.5 percent and Louisiana is just slightly higher, at 7 percent. Both are below the U.S. average of 7.3 percent.

Hodges said cities with high unemployment that could provide a potential supply of energy construction labor include Cleveland, Ohio; Detroit; Flint, Mich.; Las Vegas; and Los Angeles.


TOPICS: News/Current Events; US: Louisiana; US: Texas
KEYWORDS: construction; energy

1 posted on 09/18/2013 12:06:38 PM PDT by thackney
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To: thackney

Thankful for our blessings, here in Texas. Lots of construction...primarily energy related/trickle down...going on.


2 posted on 09/18/2013 12:09:27 PM PDT by Jane Long (While Marxists continue the fundamental transformation of the USA, progressive RINOs stay silent.)
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To: Jane Long

Liberals/democrats , illegals, 3rd world immigrants, and Mexicans are invading Texas cause it is booming.

they are leaving the places they ruined to ruin the U.S. and Texas.


4 posted on 09/18/2013 12:16:23 PM PDT by Democrat_media (IRS rigged election for Obama and democrats by shutting down tea party)
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To: sport

Get out of Florida and look into Texas.

Rates have been climbing for a while. We have high demand in the Energy business.


5 posted on 09/18/2013 12:21:18 PM PDT by thackney (life is fragile, handle with prayer)
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To: Democrat_media
True. So, should we turn away any and all growth that the energy industry is providing to Texas??

I agree with your statement. If you have a solution, please post a separate thread about it and ping me. Thanks!

6 posted on 09/18/2013 12:23:23 PM PDT by Jane Long (While Marxists continue the fundamental transformation of the USA, progressive RINOs stay silent.)
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To: Jane Long

First solution is to stop the Amnesty bill in Congress right now . call your congressmen, and keep posting on here to remind people


7 posted on 09/18/2013 12:27:33 PM PDT by Democrat_media (IRS rigged election for Obama and democrats by shutting down tea party)
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To: thackney


8 posted on 09/18/2013 12:29:58 PM PDT by Iron Munro (When a killer screams 'Allahu Akbar' you don’t need to be mystified about a motive.)
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To: thackney

There is no labor shortage


9 posted on 09/18/2013 12:30:45 PM PDT by GeronL
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To: Democrat_media
I do that AND send faxes via NumbersUSA.

Now, back to thread topic....

Energy construction jobs booming as more than $100 billion in new building planned...

May God continue to bless Texas!

10 posted on 09/18/2013 12:37:12 PM PDT by Jane Long (While Marxists continue the fundamental transformation of the USA, progressive RINOs stay silent.)
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To: GeronL
There is no labor shortage

There is a select labor shortage in the gulf coast energy industry. It is not nationwide or across all industries.

The local area rates are already up.

11 posted on 09/18/2013 12:51:36 PM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

I have one more big project to complete before I find something in the energy industry. Thanks for posting!


12 posted on 09/18/2013 1:01:59 PM PDT by ryan71 (The Partisans)
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