CANAdiAN construction OUtlOOk
Every second of the day, Americans rely on energy from oil and natural gas to maintain their daily lives. By taking advantage of advances in horizontal drilling and hydraulic fracturing techniques, energy companies are making unprecedented investments to develop unconventional oil and gas resources trapped within shale formations.
The trend is expected to continue during the next two decades. in fact, by 2035 the oil and gas industry is expected to make more than $5.1 trillion in cumulative capital expenditures.
This high level of activity will translate into significant opportunities for the U.S. design and construction industry nationwide and will have far-reaching global implications. Following are some key trends associated with the new energy revolution that will have a ripple effect on the U.S. design and construction industry for decades to come.
Energy Industry Drains Construction Talent
The fact that many construction employees have gravitated to the growing oil and gas sector should come as no surprise. In 2008, just 3.8 percent of the total construction workforce was engaged in direct oil and gas construction. That number almost doubled by 2012 to 6.4 percent.
One of the main reasons for this shift is that during the construction downturn following the Great Recession, the high level of shale activity and oil and gas production lured construction workers away from depressed markets, offering ample opportunities to increase their incomes. According to FMI’s estimates, nearly 10 percent of the total U.S. construction workforce will have moved over to this burgeoning segment of the industry by 2017 .
Growth, of course, is good. However, this particular expansion could come at the expense of other construction sectors that are now experiencing their own recoveries and subsequent growth. The expansion also could impact the oil and gas industry, where the sector’s share of total workers continues to increase despite concurrent double-digit growth in the U.S. residential sector.
Raising geographical indications in Quebec: an outlook on social construction, links with territory and development/L'emergence des Indications ... from: Canadian Journal of Regional Science
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