Petrochemicals will need in excess of 150 thousand skilled workers by next April
Demand for skilled labor in the U.S. chemicals industry is expected to peak in April 2016, according to Daniel Groves, workforce director at the construction Users Roundtable (CURT) and chief executive of data provider Construction Industry Resources. Groves expects that around 156,000 skilled workers will be needed in the U.S. petrochemical industry by the time hiring peaks in 2016.
The Southeast U.S.A. is expected to draw the lion’s share of the hiring, accounting for about 132,000 of the sector’s workers. There are six new ethylene crackers currently under construction in North America, most of which are in the Gulf Coast, according to research by Petrochemical Update.
In the meantime, at least eight companies have announced plant expansions, many of which are already underway. A number of other petrochemical projects have been announced, though not yet approved.
The current pipeline of greenfield and brownfield construction projects is valued at around $24 billion, according to Petrochemical Update.
Rapidly increasing recruitment
The growth in the petrochemical industry is also spurring more recruitment for skilled workers in the industry. Petrochemical owners such as South Africa’s Sasol (ticker: SSL) plan to ramp up their average annual recruitment from less than a dozen to thousands over the next few years.
Sasol, which is building an $8.1 billion cracker and derivatives complex near Lake Charles, Louisiana, expects to hire almost 5,000 construction workers over the next three years and some 500 full-time employees when the facility comes on stream in 2018, according to Jeffrey Gill, senior HR leader, Learning and Talent Management at the company.
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.
