The current construction boom is creating a high demand for a robust workforce. As our economy continues to expand – demand for construction is spanning multiple market sectors all at once – an unprecedented burden on the industry has developed. Nationwide needs for pipeline and energy construction are increasing rapidly.
There is a low supply of workforce due to downsizing during the recession, experienced workers aging-out, and lack of younger generations entering. The median age of the construction workforce has been steadily trending upward. In 2019, the age is now 42 years old. Moreover, this median age is the highest average age of the overall workforce. All of these unparalleled factors are creating a perfect storm of a rapidly growing workforce shortage. The industry needs to get creative.
Bottlenecks Alongside a Workforce Shortage
Early planning and success at the senior management level within the oil and gas industry are vital in these times of rapid and exponential growth. Bottlenecks are popping up everywhere as the existing infrastructure cannot cope with rising production. The shale revolution, from Permian basin fracking and beyond, has created an outstanding need. Producers can’t get their oil and gas to customers fast enough.
The US has become the world’s leading oil and gas producer. In particular, Texas has become the epicenter of this booming industry, producing 40% of the national oil production. Companies are beginning to invest upwards of $40 billion to expand the state’s pipeline; at least three large pipelines are in construction. However, there are still many export facilities that have a limited capacity for growth on the level of export.
How to be On Time and Under Budget with Experts Aging-Out
Nowadays – if you want to be on time and under budget – qualified senior-level management with up-to-date technical expertise and business acumen are necessary. Alongside the distinct lack of human capital as a whole, from field labor to management, contractors are attempting to hedge the additional risk by committing to project delivery in an uncertain labor environment.
It is common knowledge that the construction industry is falling short of retaining quality construction professionals that can match the complexity of the current economic environment. The immediate effects of this shortage have already become visible in troubled projects, troubled businesses, and rising insurance claims. Soon this effect will take place in the upfront cost of schedule and construction.
The Newport Group Can Help
The Newport Group has extensive knowledge of the energy and construction markets. We’ve spanned all functions across the pipeline & facilities construction vertical. This breadth of industry expertise includes cross-country infrastructure for midstream oil and gas operators and contractors, gas pipeline replacement, maintenance and repair for utility contractors and operators, oilfield facility construction and maintenance for pipeline contractors, and mid and upstream operators.
Our sophistication in extensive knowledge of the markets across all applications of pipeline and facility construction allows us to tailor our search to your specific needs. Candidates we vet are qualified, job-ready, and already trailblazing within the industry. We know the in-market candidates that can help build enterprises to meet these new demands in construction.
We have over 75 years of cumulative experience in energy and construction recruitment. We aim to help continually improve the construction industry as the challenging, unique, attractive, and rewarding business that we know it to be. It is more crucial than ever to build a robust and sustainable pipeline of quality construction professionals that can meet the imminent and diverse needs of the industry. They will pay dividends to the industry and the marketplace at large. Learn more about how The Newport Group can help build your enterprise here.