This study examines the timing and scale of a hydrogen energy industry buildout – modeled to support an economy-wide net-zero pathway – and evaluates whether the U.S. construction sector has sufficient skilled craft labor to deliver that buildout in the presence of competing industrial and infrastructure construction.
The skilled craft workforce has faced a widely reported decline in both numbers and skill levels, affecting projects in planning and execution. While some of this is a lingering, structural issue, much of it is cyclical, tied to large swings in economic activity. These cycles force workers out of the industry, often into other fields, where their under-utilized craft skills deteriorate – sometimes permanently. The report focuses on 19 specific skilled craft worker disciplines essential to hydrogen and other construction projects, assessing current capacity and long-term gaps.
Over the next decade, a surge in public infrastructure, industrial, and hydrogen-related projects – some driven by federal legislation – could keep demand for construction labor high. This could create delays in starting and completing projects, even as it sustains well-paying jobs. Hydrogen-related labor needs are expected to persist through 2050, though near-term demand is likely to be dominated by other large federally supported projects to rebuild infrastructure, reshore manufacturing, and expand renewable energy. Labor demand estimates for hydrogen projects are based on project schedules, while broader construction needs from 2030 to 2050 reflect econometric projections for other sectors.
While the federal Occupational Employment and Wage Surveys show only modest wage increases tied to labor demand, this likely underreports real market changes due to infrequent data collection and industry fragmentation. In practice, owners and skilled craft workers respond quickly to changing conditions, adjusting schedules, negotiating higher wages, and reallocating labor to meet urgent needs.
The study finds that even before hydrogen-related projects ramp up, the U.S. construction workforce lacks sufficient craft labor supply to meet overall project demand. This shortfall poses a systemic challenge affecting all construction sectors, including hydrogen. Greater cooperation between owners and contractors will be critical for training, reskilling, and retaining skilled craft workers – particularly to replace aging workers and prepare new entrants for technically demanding roles.
Authors Todd Gorgian, Knipping, E