SOURCE: Industrial Info Resources

Industrial Info Resources

February 26, 2015 06:00 ET

Pennsylvania to See More Workforce Supply Shortfalls Amid Marcellus Development, an Industrial Info News Alert

SUGAR LAND, TX--(Marketwired - Feb 26, 2015) - Researched by Industrial Info Resources (Sugar Land, Texas) -- Boilermakers, ironworkers, operators and millwrights will be in short supply in Pennsylvania during the next five years as a result of the region's Oil & Gas Industry shale boom, according to a new labor analysis by Industrial Info.

Industrial Info has completed a Labor Analysis and Forecast of the Marcellus Shale play for 2015 through 2020. The analysis includes supply of and demand for specific crafts for each year.

For many years, the U.S. industry has neglected to develop its skilled craft labor force; today, regions around the country are feeling the pinch, as there are not enough local workers to carry out construction projects in residential, commercial and industrial development. That picture could be changing soon in some areas of the country, where the pull-back on crude-related infrastructure and processing projects will lower the labor demand expectations.

However, Industrial Info anticipates no sign of relief for the state of Pennsylvania.

As crude oil prices tumble, oil and gas companies are announcing budget cuts for oil production and exploration projects, which will free up labor in regions around the oil sands extraction fields of Alberta, Canada, and the liquids-rich shale play in North Dakota's Bakken and Texas' Eagle Ford and Permian basins.

But in Pennsylvania, the relief may not come soon, if at all. The Marcellus Shale formation, which spans Pennsylvania, West Virginia, eastern Ohio and counties in lower New York, is a mass producer of natural gas. According to the U.S. Energy Information Administration (EIA), the region surpassed 16 million cubic feet per day of natural gas production in December 2014, up 17% from a year before. Industrial development in the region is being driven by pipeline construction and gas-processing capacity to reach its end consumers.

In Industrial Info's analysis for the state of Pennsylvania, industrial labor demand for craft labor is expected to reach 31.1 million hours in 2015, up from 23.3 million hours in 2014. Over the next six years, demand will average 29.5 million hours annually, up from 23.6 million from 2007 to 2014. Such an impact will be beneficial to labor unions in the region.

The labor market drivers in the Marcellus region include increased construction spending in direct relationship to gas, terminals, pipelines, production and processing, and refining markets. These markets have seen a five-fold increase in construction investments from 2009 through 2014. Construction expenditures in indirect markets, like steel mills, pipe mills, chemical plants, pulp/paper mills and natural gas-fired power plants, increased threefold since 2006 pre-recession levels.

Industrial Info has built Labor Analysis and Forecast solutions for the Marcellus, Great Lakes, Southeast and Gulf Coast areas. Industrial Info also forecasts wage rates, per diems, and quantifies the number of travelers and the Percent of Utilization of Local Labor by craft by Metro. Please contact Tony Salemme, Vice President of Craft Labor at tsalemme@industrialinfo.com.

For more details, view the entire article for free, or browse other breaking industrial news stories at www.industrialinfo.com.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three 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.

Contact Information

  • Contact:
    Tony Salemme
    209-547-9878