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Trade Labor Shortages: A Growing Concern Across Industries

Author

James Burns
July 8th, 2024 • Estimated Reading Time: 5 minutes

Table of Contents

TL;DR

  • Workers with tangible skills like plumbing and carpentry are dwindling with the workforce.

  • Plumbing is among the hardest hit.

  • The low rate of jobs being filled in construction industry along with plumbing will cause the economy to lose billions of dollars.

  • An aging workforce and lack of interest are among the root causes of these shortages.

  • Here, we encourage the youth to go into trades for at least a short time because it’ll be better for their financial health long-term.

Trade Labor Shortages: A Growing Concern Across Industries

The skilled trades are facing a critical work force shortage that’s impacting multiple sectors of industry. The lack of qualified workers is creating challenges for businesses and consumers.

We’ll take a quick look at the current state of trade labor shortages and it’s effects. In this issue, we’ll go with plumbing, HVAC, and construction.

Plumbing: A Pipeline of Problems

The plumbing industry is experiencing a significant shortage of skilled workers. With an aging workforce and fewer young people entering the field, many plumbing companies are struggling to meet demand.

This shortage can lead to longer wait times for repairs and installations. It can also be potentially higher cost to consumers.

It may be an increased strain on existing plumbers. According to an analysis by John Dunham & Associates, the U.S. is expected to be short 550,000 plumbers by 2027.

In 2022, the shortage had already cost the economy $33 billion. That’s incredible!

HVAC: Feeling the Heat

With 2024 currently being one of the hottest summers on record, the HVAC business has got to be booming. However, this sector is facing a similar crisis as the plumbing sector.

Currently there are only about 260,000 HVAC technicians in the workforce that still needs more than 80,000 positions to fill.

The industry is losing new technicians at a rate of about 8% per year and it’s anticipated that 20% of the HVAC workforce will be retiring in a few years.

This result of the shortage leaves:

  • Longer wait times for AC repairs and installations

  • Potential misdiagnoses due to under-qualified technicians

  • Challenges for HVAC companies in meeting seasonal demand

Construction: Building a Crisis

The construction industry is grappling with a shortage of approximately 650,000 workers. This gap affects various specialties within construction, including:

  • Carpenters (framing, rough, and finished)

  • Bricklayers/Masons

  • Electricians

  • Concrete workers

  • Drywall installers

According to the National Association of Home Builders, over 55% of single-family home builders reported shortages across 16 home-building trades in 2021.

Other Affected Trades

The labor shortage extends beyond these sectors:

  1. Manufacturing: 82% of companies report experiencing labor shortages.

  2. Truck drivers: The industry needs more than 80,000 drivers to address the current shortage.

  3. Electricians: 79% of firms struggle to find qualified electricians.

Root Causes and Potential Solutions

Several factors contribute to these shortages:

  • An aging workforce with many skilled workers retiring

  • Lack of interest from younger generations in pursuing trade careers

  • Misconceptions about trade jobs

  • The impact of the COVID-19 pandemic on technical education and training

To address these issues, industry leaders and policymakers are exploring various solutions:

  • Improved training programs and apprenticeships

  • Efforts to attract women to the trades as well as younger workers

  • Enhanced use of technology in training and recruitment

  • Emphasizing the benefits of trade careers, such as job stability and lower student debt

As these shortages persist, it’s crucial for businesses, educational institutions, and government agencies to collaborate on developing long-term strategies to attract, train, and retain skilled workers in the trades.

Looking ahead

The trades have always been a safe bet for a career. I learned trades while in the service Power plant operator and Computer Aided Designer/ Land Surveyor.

These happen to be trades that aren’t in high demand, but trades like HVAC, electricians, and welders can always find work. Many parents may frown upon these careers.

Personally, I encourage them. Check in next week with more on the economy and what inflation is doing.