It’s no secret that the oil and gas industry faces a looming labor shortage. The consulting firm FMI has released a new white paper on the subject, titled “Skills Shortages in a Booming Market — The Big Oil and Gas Challenge.” The report discusses market trends within the oil and gas industry, including a geographic pull on skilled labor and actions being taken to address the inevitable labor shortage.
In 2008, 3.8 percent of the total construction workforce was engaged in direct oil and gas construction. By 2012, 6.4 percent of that workforce was engaged. According to FMI’s estimates, by 2017 nearly 10 percent of the total U.S. construction workforce will have moved over to this burgeoning segment of the industry.
“The oil and gas construction market remains vibrant, and many firms are seeking new ways to expand and grow their market presence,” said Scott Duncan, vice president with FMI Capital Advisors Inc. “As competition for limited resources intensifies, labor and talent management are quickly becoming key differentiators in company performance and overall company value. Companies seeking to build a presence in this market need to ensure they have the systems and processes in place to maximize productivity and retain top talent.”
To keep up with the dynamic and competitive business environment, according to the report, U.S. energy infrastructure construction firms need to develop a robust talent pipeline to confront the labor challenges.
The full report is available online at www.fminet.com. Be sure to check out the March issue of North American Oil & Gas Pipelines for an in-depth look at training and recruitment efforts to bring new workers to the pipeline industry.