SURVEY: Workforce Transformation Critical as U.S. Energy & Chemicals Sector Eyes Growth and AI Integration

The big picture: The E&C industry is at an inflection point. After a decade (2014-2024) that saw a 6.5% decrease in direct employment due to factors like slow growth, consolidation and an aging workforce, the sector is now looking to expand. This expansion, however, occurs alongside a technological shift demanding new skill sets.

• The report, "U.S. Energy and Chemicals Workforce: Transforming for a Resilient Future," highlights that the industry's focus on resilience, productivity, safety, and compliance is driving these changes.

By the numbers:

• 1.2 million workers (over half the current E&C workforce) are expected to need upskilling in areas like new technologies, process operations, and analytics over the next decade.
• 534,000 employees are projected to require reskilling, particularly for emerging technologies and evolving company portfolios.
• The 4.1% employment rise by 2033 is expected to be primarily led by the chemicals industry.
• Deloitte's analysis of E&C tasks indicates that 36% are expected to become "human-in-the-loop," with machines (26%) and agentic AI (10%) leading efforts, while 64% will remain human-driven.
• In 2024, approximately 41% of enterprise IT spending by the U.S. E&C sector was allocated to IT outsourcing services, reflecting a strategy to enhance productivity and agility.

Driving the news: The E&C sector is contending with disruptive factors including trade trends, inflation and supply chain vulnerabilities. In response, companies are making strategic decisions regarding investments, portfolio adjustments and workforce agility. The integration of AI and digitalization is seen as fundamental to transforming E&C work.

• Historically, E&C companies have relied on productivity gains, process innovation, and selective outsourcing to maintain success despite an aging workforce and evolving product demand.
• The current wave of digitalization aims to further boost these efforts, with a significant portion of tasks potentially benefiting from automation or human-machine collaboration.

What they're saying: "The sheer size, influence, and importance of the energy and chemicals sector makes it important to the future of not only U.S. energy, but also the U.S. economy," said Rick Carr, principal and vice chair, U.S. energy and chemicals leader, Deloitte Consulting LLP. "How the industry navigates macroeconomic headwinds, new technologies, and shifts in energy and manufacturing could have an impact not just on business growth, but the country's economic growth, energy affordability and the nation's energy future. Companies across the sector who evolve their workforce strategies and focus on developing new skills could be better positioned for long-term growth."