I live near an area where there is a large prevalence oil and gas refineries and O&G-adjacent industries. The men and women who keep these plants running work a grueling schedule and are often involved in fairly risky activities due to the nature of the stuff they are dealing with (flammable or toxic materials). Despite this, tons of locals flock to these jobs and there there is a huge surplus of available people who are seeking these jobs. By huge, I mean people testify to applying to these jobs for literal years before they ever get an opportunity (many don’t without connection). Entry level typically requires experience or an Associates degree. I should note that experience is helpful but not critical, the job is not easy but is not rocket science either. These jobs can generally get you to 6 figures in the first year, and most top out around 150K in a MCOL area. The benefits are generally excellent, some even have pensions. Yes, these companies are extremely profitable and I’ve already mentioned that the work is hazardous and has odd hours, but with the massive surplus of willing and able labor, why do these companies still pay so highly?
In: Economics
I think you’re confusing highly local supply and demand for regional supply and demand. There’s a ton of demand on the gulf coast and nearby. However, the supply and especially skill of labor depends highly on people’s willingness to live wherever there is.
Houston, being a major city with tons to do can attract the best and the brightest for less money. A major player on the ship channel won’t have much trouble getting Joe with 10 years of experience in exactly what they need because Joe wants a decent salary, but also wants ways to spend his money. It’s potentially extremely difficult to get an apprenticeship where Joe works because there’s plenty of well-trained Joes willing to do the job.
However, I worked in a facility around 60 miles from Houston. We didn’t have very much trouble getting techs because the whole small town nearby was trained in some capacity. However, we had to have apprentices because no one would move in otherwise. They even accepted related people working in the same plant (twin brothers, father-son, husband-wife) because what else do you do if your pool is mostly a small town? Engineers always wanted a different plant assignment eventually and getting anyone with a bachelor’s degree not right out of school could be very difficult.
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