SOURCE: Industrial Info Resources

Industrial Info Resources

November 13, 2013 06:00 ET

Power Projects Put the Squeeze on Southern California Labor, an Industrial Info News Alert

SUGAR LAND, TX--(Marketwired - Nov 13, 2013) - Researched by Industrial Info Resources (Sugar Land, Texas) -- The latest update of Industrial Info's Labor Assessment Annual Subscription shows that an area of Southern California, specifically a 200-mile radius around Palmdale, located north of Los Angeles, is set to experience a significantly tightened labor market. Labor demand in this area is already on the rise, and is forecast to spike in 2015, followed by a gradual falloff, and possibly rising again from 2017 through 2020.

The reason? Anyone who knows about California's rigorous renewable portfolio standard could easily surmise the cause of this uptick in labor demand: renewable energy projects. The California RPS stipulates that utilities and electricity providers must procure 33% of their energy from renewable sources by 2020.

Within this 200-mile radius, Industrial Info is tracking 143 Power Industry projects worth a whopping $62.1 billion that are already under way or are planned to begin by 2022. While not all of these projects will actually make it to the construction stage, the fact that such a large amount of Power Projects is on the drawing board is significant. Of these Power Projects, more than 90 are renewable energy projects, carrying a combined total investment value of approximately $37 billion.

So how do these projects affect the scenario for craft labor in the region? The latest update of Industrial Info's Labor Assessment Subscription shows that the area's demand for eight major craft labor segments will increase approximately 97% from now through 2015, rising from 8.36 million man-hours this year to 16.49 million. While demand for all crafts shows significant increases, because of the nature of the projects kicking off, some of the sharpest upticks are for pipefitters (+108%), carpenters (+165%) and boilermakers (up more than 1,100%). 

Because of the substantial scope of these projects (many requiring investments of $750 million or more), these projects show an overlapping of construction activity, causing labor demand to peak in mid-2015, followed by a consequent decline.

Industrial Info's Labor Assessment Annual Subscription for recruiters and employment executives provides insight into where the highest and lowest craft labor populations exist, and the percentage rates of historical and forecast growth and contraction. To learn more about this product and the shifting labor market, contact Tony Salemme, vice president of Industrial Info's Craft Labor Group, at or by calling (209) 547-9878.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine 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 "Contact Us" page.

Contact Information

  • Contact:
    Joe Govreau
    (713) 783-5147