SOURCE: Industrial Info Resources

Industrial Info Resources

May 05, 2016 07:30 ET

Future Labor Market in Chicago Set to Tighten, an Industrial Info News Alert

SUGAR LAND, TX--(Marketwired - May 5, 2016) - Researched by Industrial Info Resources (Sugar Land, Texas) -- Although the Greater Chicago/Northern Illinois area has seen a dip in project spending this year, this is set to change, showing a steady rise in the future and peaking in 2018. Along with this increased project spending comes increased labor demand, which is also set to peak in 2018. Across the 12 industries covered by Industrial Info in its Craft Labor reports, the Greater Chicago area is set to see an 18% growth in craft labor demand between 2016 and 2018.

Industrial Info's forecast suggests a 2.8% compound annual growth rate in the region's project spending in the 2016-20 period, with annual spending averaging $5.94 billion. Leading into the 2016-17 time period, IIR has identified 214 major capital and maintenance projects valued at $6.42 billion, many of which will carry through to subsequent years. 

The Industrial Manufacturing Industry is contributing the largest number of projects, with 62 projects planned, valued at $3.41 billion. The Chicago area is a large hub for distribution centers, which drives rail line expansions, intermodal yards and further distribution centers. Companies such as CoreCentric Solutions Incorporated (Carol Stream, Illinois) and Ikea North America Services LLC (Conshohocken, Pennsylvania) are under way with large distribution center projects that will carry on into future years.

Investments in the wind energy market also continue in region. Industrial Info is tracking seven active wind power developments with a combined value of $2.24 billion that are set to kick off in the region. BHE Renewables is planning two phases of construction of a windfarm near Walnut, Illinois, which will kick off construction in 2017 and could last into 2018.

All of this activity leads to a tightening in the craft labor market, which is expected to see tight supplies and more "travelers" for certain crafts, including boilermakers, instrumentation techs, ironworkers, millwrights and more in 2016 and beyond. New project activity, including the potential for Ford to expand its automotive assembly operations in the Chicago area, will continue to tighten labor supply, potentially driving up wages for certain crafts in the region.

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.

There's also still time to RSVP for Industrial Info's Market Outlook & Networking Event, held in Chicago May 11 at the Hyatt Regency McCormick Place. Join us for an informative panel discussion among our industry experts, followed by an evening of cocktails, hors d'oeuvres and networking.

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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