The pipeline industry in the United States is experiencing strong momentum fueled by policy shifts, market expansions and infrastructure demands. In the latest episode of Pipeline Innovations Tech Talk, host Josh Allen sat down with pipeline industry leaders at Vermeer — Jerry Beyer, Director of Sales for Infrastructure and Don Tiskevics, Corporate Accounts Manager of Pipeline equipment.
Their conversation provided a deep dive into industry growth, emerging markets and workforce challenges — revealing the opportunities and roadblocks facing pipeline contractors today.
Industry outlook and policy shifts
Pipeline contractors and organizations — including the American Pipeline Contractors Association (APCA) and Pipeline Contractors Association (PLCA) — are expressing strong optimism about the future of the industry.
A key driver of this optimism is the push for U.S. energy independence. With a renewed focus on domestic energy production, pipeline companies are preparing for an unprecedented workload increase over the next three to four years.
This optimism is not just based on administrative policy changes, but industry-wide shifts, including:
- Energy demand is growing: Both individuals and businesses are consuming more energy than ever, fueling the need for expanded pipeline networks.
- Supreme court rulings: The overturning of the Chevron deference has shifted decision-making power from federal regulators to state-level authorities, impacting pipeline approvals.
- Energy Permitting Reform Act (2024): This is still in committee. This legislation aims to streamline approval processes, reducing the red tape that slows pipeline projects.
Emerging market growth for the pipeline industry
The pipeline industry has historically centered on oil and gas, but new market sectors are gaining traction, including:
- Renewable energy infrastructure: Solar, wind and hydroelectric projects require large-scale drilling rigs for transmission infrastructure, offering fresh growth opportunities within the pipeline sector.
- Carbon capture and hydrogen pipelines: Carbon capture technology is gaining momentum, alongside the push for hydrogen pipelines, opening new investment avenues in energy transportation.
- AI data centers and fiber connectivity: Perhaps the most surprising emerging market is AI-driven data centers. As AI technology expands, data centers require substantial energy infrastructure, including natural gas pipelines and fiberoptic connections.
According to industry experts, AI data centers will be the fastest-growing market segment in pipeline infrastructure, surpassing electric vehicle (EV) infrastructure development. Energy consumption from AI-powered data centers is surging, driving demand for natural gas pipelines. To meet this demand, pipeline companies must overcome aging infrastructure challenges and optimize installation methods.
Labor shortages and workforce challenges
Despite the industry’s growth, one of the biggest hurdles is the shortage of skilled labor, exacerbated by an aging workforce and lack of new recruits.
Many pipeline professionals enter the industry through family connections or part-time work, but attracting new workers remains a challenge. Young professionals often hesitate to join due to tough working conditions, including:
- Harsh environments
- Travel and long hours away from home
- Physical demands
The lack of manpower is slowing down the industry’s overall growth — making it difficult to meet infrastructure demands. If pipeline companies cannot get pipelines, fiberoptic cables and sewer lines into the ground efficiently, the entire country’s infrastructure development slows — ultimately affecting economic growth.
How Vermeer is addressing labor challenges
Vermeer is taking proactive steps to attract and train new workers while making equipment more efficient and user-friendly.
On-board technological innovations
Vermeer is streamlining equipment operation to make jobs more accessible, with features like:
- Automated rod exchange (ARE) — found on the D24 — completes the entire rod changeout sequence with a single button push. ARE eliminates up to 19 manual steps, streamlining operations and enhancing overall efficiency.
- Real-time operator feedback and telematics to enhance efficiency.
- Self-diagnostics and automated troubleshooting to reduce downtime and ensure faster repairs. When dealer support is needed, the detailed information provided by the system helps technicians arrive better prepared to address the issue.
The pipeline industry is undergoing a rapid transformation — fueled by policy shifts, emerging markets and technological innovations. Vermeer is working to positively support the pipeline industry and customers during this period of exceptional growth by addressing labor challenges, optimizing infrastructure solutions and supporting market expansions.
With optimism running high and demand surging, the next few years are looking to contain unprecedented growth and innovation for the pipeline industry.
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