As we enter 2022, it’s nice to see that some things seem to be looking up. For example, we just ran an online news brief based on a recent press release from the Associated Builders and Contractors that revealed the U.S. economy expanded 5.7% in 2021, marking the fastest rate of growth since 1984. In addition, contractor confidence appears to be on the rise based on ABC’s “Construction Confidence Index” readings for sales, profit margins, and staffing levels, all of which increased in December. “Demand for construction services in America remains strong,” noted ABC Chief Economist Anirban Basu. “Contractors have been upbeat about sales and employment prospects for months. What changed in December is that a growing fraction of contractors now believe that profit margins will rise during the next six months despite rising costs due to labor shortages and volatile materials prices.”
Presuming this level of confidence turns into increased profits for contractors this year, rising material prices, supply chain challenges, and the ongoing skilled labor shortage dilemma will inevitably complicate matters. Based on results from EC&M’s 2021 Top 50 Electrical Contractors Survey, not surprisingly, 75% of respondents indicated they were experiencing worker shortages.
According to the U.S. Bureau of Labor Statistics, demand for skilled trades will continue growing between 2020 and 2030, driving nearly 400,000 new jobs across all construction and extraction occupations. Employment of electricians specifically is projected to grow 9%, accounting for approximately 84,700 openings each year, on average, over the decade. Data recently analyzed by Porch Research mirrored this prediction for residential contractors, citing “electricians” as the best all-around home improvement contractor occupation in 2022, based on earning potential, job growth prospects, and overall industry climate. As has been the case for years, the number of young professionals entering the trade does not align with demand, making the act of recruiting and retaining top talent for electrical employers increasingly difficult. A press release that recently crossed my desk from Wolverine characterized this dilemma especially well and demonstrates what seems to be an ongoing educational disconnect in the market. Consider the following facts it uncovered:
• While almost three-quarters (72%) of current high school students believe it’s important to consider alternative options to a traditional four-year college, just 30% have considered vocational/trade schools.
• A total of 51% say “I don’t know enough about it” as the reason for not considering enrolling.
• At the same time, four in five (79%) of students said they believe vocational skills should be taught in high schools, indicating interest in learning more about the skills needed to fulfill careers in the trades.
Wolverine is looking to fill that gap by providing expanded awareness and access to skilled trades education. Read about how the company is donating $30 on every pair of its special-edition student boot collection to unCommon Construction. This is one of many examples of how industry manufacturers are trying to connect with potential future members of the trades. Sometimes even small steps can drive big results, so let’s all be part of the solution. One way to do this is by recognizing future leaders in the field and showcasing what a day in the life of a young electrical professional really looks like. That’s where EC&M’s annual 30 Under 30 All Stars recognition program comes in. If any of you know young colleagues who consistently go above and beyond the call of duty, especially demonstrating innovation, efficiency, and creativity while incorporating technology into their jobs, we want to hear from you. Please take the time to nominate yourself or a coworker — the submission process requires only 200 words or less. Call for nominations will go out the end of March and be due the end of April, so check the website for more information or email me directly for the nomination form at [email protected].
