Great Lakes to Feel Tightening Skilled Craft Labor Market, an Industrial Info News Alert

Great Lakes to Feel Tightening Skilled Craft Labor Market, an Industrial Info 
News Alert 
SUGAR LAND, TX -- (Marketwired) -- 01/06/14 --  Researched by
Industrial Info Resources (Sugar Land, Texas) -- As multiple large
industrial projects are set to be under construction simultaneously
in the Great Lakes region over the next few years, the area's demand
for skilled craft labor is expected to steadily increase between now
and 2016. Industrial Info forecasts that labor demand for eight
skilled crafts, including welders, pipefitters, electricians and
boilermakers, will rise by almost 5 million man-hours between 2013
and 2016 in the region. 
After peaking at approximately 28.17 million hours in 2011, skilled
craft labor demand in the Great Lakes region has been declining,
reaching a trough in 2013 of 21.9 million hours. However, this is set
to change. Industrial Info's most recent update of the Great Lakes
Region Labor Assessment Annual Subscription forecasts that regional
labor demand will climb to 26.8 million man-hours by 2016 and remain
above 26 million hours through 2017.  
Labor activity in many of the areas surrounding the Great Lakes will
change as project activity shifts, but the largest concentrated rise
in demand, which will certainly have an effect on wages and
availability throughout the region, will occur in the area around
Toledo, Ohio. Craft labor demand here is expected to more than triple
between 2013 and 2016. In this area in 2014, Industrial Info is
forecasting an 85% labor utilization rate for boilermakers that could
lead to poor retention, higher retention bonuses, and lesser
productivity. Industrial Info also expects tight demand in the area
for instrumentation techs in the area this year, while the
utilization rate for electricians and welders is forecast to be about
60% each. 
The overall increase in labor use in the Toledo area is primarily due
to Husky Energy's (NYSE:HSE) upgrade and unit addition projects at
its refinery in Lima, Ohio, as well as similar projects at its Toledo
Refinery, which it owns jointly with BP plc (NYSE:BP). The projects
are designed to increase the refineries' crude slates to process
heavy Canadian crude and a have a combined total investment value
(TIV) of more than $5 billion. Various pieces of the projects are set
to kick off from 2015 onward, with overall completion slated for
2017. These projects are causing labor demand in the Toledo area to
increase from 3.15 million hours in 2013 to 9.78 million in 2015,
remaining above 9.4 million hours in 2016 before the projects begin
winding down.  
In southernmost Indiana, several emissions-control projects are set
to kick off in the next few years. These projects, coupled with $2.8
billion of fertilizer projects that are planned to kick off in 2014,
are set to drive up craft labor demand in the area from about 2
million hours in 2013 to about 4.8 million hours in 2015, when
construction activity peaks -- a 140% increase.  
Industrial Info's Great Lakes Region Labor Assessment Annual
Subscription, which includes tracking of wage and per diem rates and
labor utilization figures, is a subscription-based product that is
updated quarterly, designed to provide recruiters and employment
executives 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 tsalemme@industrialinfo.com
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(TM), 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:
Tony Salemme
(209) 547-9878 
 
 
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