SOURCE: Industrial Info Resources

Industrial Info Resources

May 16, 2016 07:30 ET

Despite Decrease in Oil Work, North Dakota Likely to See Labor Force Tight in 2016, an Industrial Info News Alert

SUGAR LAND, TX--(Marketwired - May 16, 2016) - Researched by Industrial Info Resources (Sugar Land, Texas) -- As oil workers continue leaving North Dakota as prices remain low, anticipated project activity in the state continues to move forward. However, a lack of skilled craft labor could potentially drive up costs and cause delays in project construction schedules.

Moving forward, labor shortages are a concern in the state, particularly this year. In the 2016-17 time period, Industrial Info has identified 157 active capital and maintenance projects valued at $14.5 billion to kick off in North Dakota. The labor crunch in 2016 comes despite the fact that some projects that were scheduled to kick off this year have been canceled or delayed. Among these "fallen out" projects are CHS Incorporated's (NASDAQ:CHSCP) (Inver Grove Heights, Minnesota) planned $3 billion grassroot fertilizer plant in Jamestown, which was canceled last summer, and Northern Plains Nitrogen LLP's (Grand Forks, North Dakota) $1.7 billion fertilizer plant, for which construction was moved from a 2016 startup date out to 2017.

Renewable power projects (windfarms and hydroelectric plants) are among the projects that are moving forward in a big way. Industrial Info is tracking 24 projects, valued at $7.8 billion, which are planned to kick off in North Dakota in the future. Among these is NextEra Energy Resources LLC's (NYSE:NEE) (Juno Beach, Florida) planned Brady Wind Energy Park, near Dickinson. The first 150-megawatt (MW) phase of construction is planned to kick off construction this year. A second 150-MW expansion could follow closely behind. The projects have a combined total investment value of $600 million.

Pipeline projects are also in the works, including Energy Transfer Partners LP's (NYSE:ETP) (Dallas, Texas) Dakota Access Pipeline crude oil pipeline, which will carry crude from the Bakken Shale to Illinois.

This continued industrial activity accounts for shortages of labor for several skilled crafts in the state in 2016 and 2017, including electricians, millwrights, welders, plumbers/pipefitters and several others. The number of travelers and costs associated with per diems, incentives and wage rates seems sure to go up before backing off a bit in 2018.

Industrial Info's Craft Labor Analytics Group conducts direct surveys to gain information about craft labor supply, demand, wage rates and per diems for 12 crafts, providing both historical and forecast data for the coming years. In addition, Industrial Info also quantifies the number of shortages and travelers for each craft. For additional information on this tool, please contact Tony Salemme at tsalemme@industrialinfo.com or at (209) 547-9878.

Browse other breaking industrial news stories at www.industrialinfo.com.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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. To contact an office in your area, visit the www.industrialinfo.com "Contact Us" page.

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