Labor shortage in energy feared

Aug 28 -

McClatchy-Tribune Regional News - Priscilla Frulla The Sun Herald, Biloxi, Miss.

Explosive demand and an aging workforce may be combining to create a catastrophic labor shortage in the energy sector.

Industry executives, Labor Department officials, state leaders and representatives from the fields of construction and education began a two-day strategy planning session to address workforce needs on Monday at Beau Rivage Resort and Casino.

"The market is coming. It's ringing a bell," said Georgia Gov. Sonny Perdue, filling in for Gov. Haley Barbour at the Energy Skilled Trades Summit.

Earlier in the day, energy executives held the Southern States Energy Board's annual board meeting and spoke to members of the Southern Governors' Association before beginning the afternoon summit.

"There is a crisis looming in the Southeast with regard to skilled craft labor," said Mississippi Power CEO Anthony Topazi.

The Southeast is the fastest growing region of the country, by some measures growing 50 percent faster than the rest of the United States, said Topazi. The region is also home to a disproportionate percentage of energy-related industries, he said.

"Our growing need for labor isn't incremental," said Topazi. "It is exponential. We must meet this demand if we are going to satisfy the needs of this economy and this country's national security. "

Topazi said 31 nuclear power plants have been proposed in the U.S. with 27 of those possibly going in the Southeastern states. About 3,500 miles of transmission lines also have to be built and environmental requirements will mean 55 scrubbers added to current plants, he said.

"These are major construction projects," he said.

Industry growth could be hampered by its aging workforce.

"The average age in my company is 48 years," said Topazi. "The average age in the industry is between 46 and 50 years of age."

Half of all utility skilled craft labor could retire over the next seven to eight years, he said.

"This whole area of energy is a pretty intricate web of connected pieces," said Norm Szydlowski, CEO of Colonial Pipeline Co.

It is important that workforce investments be synchronized in all areas, he said, from electricity to pipelines to refineries.

The group brainstormed on possible solutions for recruitment and retention, including an initiative Szydlowski referred to as "silver mining" -- enlisting retirement-age employees to stay in their jobs longer or to transition to a job teaching new recruits.

Assistant Secretary of Labor for Employment and Training Emily Stover DeRocco said her agency's priorities have been to make the workforce investment system more demand driven and flexible to meet the needs of the regional economy. DeRocco promised the help of the department and its federal partners to move toward solutions to meet the energy sector's needs.