CANUS’s Utility Industry Labor Sourcing Strategy Cost Analysis Has Been Published

CANUS’s White Paper has been published and is available for free via Scribd and Amazon Kindle.  Below you will find the Scribd publication embedded.  To download the white paper to your kindle just click the amazon kindle link below or sign in to https://kindle.amazon.com/ and search for “Utility Industry Labor Sourcing Strategy Cost Analysis”.

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Utility Industry Labor Sourcing Strategies

TVA Age Demographics

TVA Age Demographics

As the U.S. Federal reserve’s decision to taper quantitative easing (stimulus) spending the associated rising interest rates that have already been realized and are projected to continue rising will weigh heavily on the utility industry’s share prices.  Along with weak power demand and generation fundamentals that are eroding industry growth forecasts the utility industry has to be more and more focused on their costs of service (EEI Finance Committee, 2014).  Labor costs both internally and contracted make up a large portion of costs of goods sold.  As the utility industry’s core workforce of “baby boomers” begin to meet retirement age the ratio of the internal labor force to contract labor will continue to grow in favor of a contract workforce.  The line worker workforce expected to retire within the next five to ten years could approach 50% in certain organizations (U.S. Department of Energy, 2006).  This means that evaluating the best and most cost efficient way to utilize a contract workforce must be established.

Find out more about the cost comparisons of the different utility industry’s labor sourcing strategies here.

Utility Contractor Evaluation Priorities White Paper Survey

CANUS Corporation would like to invite our blog readers and newsletter subscribers to participate in the below survey about the utility industry’s contractor evaluation priorities.  We plan to use the findings from this effort as part of our next white paper.  By opening the survey to utility employees as well as contractors/consultants we wish to come at this data from multiple angles to understand discrepancies and confirm or refute our hypotheses that we plan to explore in our next white paper. Continue Reading →

CANUS Whitepaper Featured on TDWorld

CANUS’s recently published whitepaper “Utility Industry Labor Sourcing Strategy Cost Analysis” is being highlighted in Transmission and Distribution World’s whitepaper section located here.  The white paper highlights labor sourcing strategies from a cost perspective.

As the utility industry continues to change a more deliberate focus is given to the costs of goods sold.  The importance of finding the best labor sourcing strategy is becoming a key element of running a successful utility.  This study evaluates the three best fit labor sourcing strategies for utility craft employee work scopes from a direct wage perspective, total hourly cost perspective and finally across a recurring project scope perspective.  From an hourly total labor cost perspective the Crew Augmentation strategy is a 26% savings versus the Internal Resources strategy and a 15% savings versus the Outsourced Scope strategy.  The Crew Augmentation strategy had a project cost savings of 11% versus the Outsource Scope strategy and a 39% project cost savings versus the Internal Resources strategy.  The crew augmentation labor sourcing strategy is best aligned with the utility industry’s evaluation criteria.   

If you are interested please give it a look.  Thanks.

Utility Industry Labor Sourcing Strategy Cost Analysis

CANUS is proud to present our first White Paper; Utility Industry Labor Sourcing Strategy Cost Analysis.  In this white paper we explore the major labor sourcing strategies used within the Utility Industry.  Here is the abstract of our method and findings;

As the utility industry continues to change a more deliberate focus is given to the costs of goods sold. The importance of finding the best labor sourcing strategy is becoming a key element of running a successful utility. This study evaluates the three best fit labor sourcing strategies for utility craft employee work scopes from a direct wage perspective, total hourly cost perspective and finally across a recurring project scope perspective. From an hourly total labor cost perspective the Crew Augmentation strategy is a 26% savings versus the Internal Resources strategy and a 15% savings versus the Outsourced Scope strategy. The Crew Augmentation strategy had a project cost savings of 11% versus the Outsource Scope strategy and a 39% project cost savings versus the Internal Resources strategy. The crew augmentation labor sourcing strategy is best aligned with the utility industry’s evaluation criteria.

Labor Sourcing Strategy Cost Analysis