According to VP of Craft Labor Forecast at Industrial Info Resources’ (IIR), Tony Salemme, stated at the 2016 Petrochemical Update’s Refining, Engineering & Construction Conference, that there will be 163.6 million craft labor hours that will be needed at the peak of 2018. Previous expectations were recorded, as only 160 million hours would be needed.
Originally, Industrial Info Resources predicted the peak of craft labor hours would come in 2016 based on data collected, but revised this to 2017 before revising the numbers again to 2018. It has been forecasted that these numbers will fall to 128 million hours in 2019 and 115.6 million hours in 2020 as major downstream projects will be completed by then. In previous years between 2013 and 2015, craft labor hours jumped 29.5% to 153.4 million.
Billion dollar projects spiked in construction around June 2014, October 2014, January 2015, and June 2015 but there was a collapse in project starts, which caused the Gulf Coast to have starts on 810 smaller projects. These billion dollar projects have remained constant since early 2015 due to the overlap of several ethylene mega projects such as Dow Chemical, Chevron Phillips Chemical, ExxonMobil Chemical, and Formosa Plastic Plants, which are all being built in Texas. They are all on track to start up in 2017.
There is an optimistic outlook in the upcoming year for downstream construction in the industry and with Pangea transitioning to Project Management, we will be better prepared to market ourselves to our clients by providing them the best cost effective service for their projects.
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