U.S. Energy & Chemicals Industry Poised for Growth with Enhanced Workforce Skills and AI Integration

The Future of the U.S. Energy and Chemicals Industry: Growth and Challenges

According to a recent Deloitte report, the Energy & Chemicals (E&C) sector in the United States is anticipated to grow its employment by 4.1% by the year 2033. With an estimated workforce of 1.84 million individuals directly involved, this industry is not only integral to the economy but also faces significant disruptions requiring recalibration of skills and functions within the workforce.

Workforce Growth and Upskilling Needs

As the sector expands, it’s crucial to acknowledge that more than half of the current workforce, roughly 1.2 million workers, will need upskilling to remain relevant in this evolving landscape. Additionally, around 534,000 employees are poised for reskilling as technologies continue to advance.

The demand for skills is intricately linked to the integration of digitalization and Artificial Intelligence (AI), reshaping job functions across the industry. The report noted that a significant portion of tasks—36%—will integrate AI, with a third predicted to maintain a human component involving automated systems alongside human workers. This shift emphasizes the need for effective transitions that support both human workers and the emerging technologies.

Economic Implications and Industry Competitiveness

The U.S. E&C industry must navigate various external pressures—including inflation, global trade trends, and supply chain interruptions. How the industry adapts to these challenges will not only determine its growth trajectory but also its competitiveness on the global stage. Emphasizing safety, compliance, and resilience will play a pivotal role in shaping the industry's response.

Deloitte's analysis indicates a reduced direct employment figure—down 6.5% from 2014 to 2024—exposing the urgency for strategic decisions to boost workforce agility and processes. As the sector moves towards a model reliant on automation and data analytics, companies need to rethink their workforce strategies and investments to diversify and strengthen their portfolios.

Embracing Digitalization and AI

The likelihood of AI adoption and digitalization substantially reshaping conventional roles within E&C cannot be understated. The analysis projected that 20% of job tasks could benefit from merging mechanical abilities and human expertise, while 26% of hours worked stand to gain from automation. As part of enhancing productivity, firms are investing more in IT outsourcing and operational services—amounting to about 41% of IT expenditure in 2024 directed towards these areas.

Deloitte leaders emphasize the importance of evolving workforce strategies, particularly in developing new skill sets. This adaptability not only positions companies for sustained growth but also aligns with broader economic considerations such as energy affordability and national energy strategy.

Conclusion

The energy and chemicals sector remains a cornerstone of the U.S. economy. The strategic integration of AI and a focused effort to upskill the existing workforce are essential dynamics necessary to ensure that the industry can thrive amidst macroeconomic challenges. Emphasizing training and skill development ensures that companies remain competitive while contributing significantly to the economic landscape of the country.

As Rick Carr, Principal and Vice Chair of Deloitte’s U.S. Energy and Chemicals division, notes, “The sheer size, influence, and importance of the energy and chemicals sector makes it paramount for both business growth and the nation's energy future.” With significant adjustments in workforce strategies, the U.S. E&C industry is set to navigate this critical juncture wisely.

For more insights on the evolving landscape of the U.S. energy and chemical workforce, visit Deloitte's official site.