TO BUILD A BETTER WORKFORCE – FOR EVERYONE

Let’s face it… it’s hard to find good help. And with the design and construction industry experiencing unprecedented labor shortages, which are driving up costs and delaying jobs, now is the perfect time for the Hub & Spoke Institute.

Few places better illustrate the generation gap between Millennials (born 1981-1996) and Baby Boomers (born 1946-1964) than the skilled trades workplace. It’s that wide divide in the workforce that worries economic experts.

About 68 percent of Baby Boomers remain in the labor force. The U.S. Bureau of Labor Statistics knows that nearly 40% of today’s skilled laborers are 45 years old or older, but only 22 percent are 25- to 34-year-olds. The problem – and it’s a big one – is Generation Z, Millennials, and the younger Generation X are neither trained nor interested in filling the careers from which Baby Boomers are retiring or aging out. And projections indicate there won’t be enough new skilled workers to ll these jobs. Consider this:

In Indiana, the Associated General Contractors of America found that:

  • 72 percent of the state’s contractors have trouble filling some or all open positions with skilled trade workers
  • 83 percent said they needed to hire even more workers because business is booming

At any point in time over the last couple years there are 200,000 – 300,000 construction job openings not filled in the U.S., according to the U.S. Bureau of Labor Statistics. Ninety-one percent of contractors surveyed reported having a difficult time finding skilled workers.

labor shortage

In a 2018 survey, worldwide business consultant Manpower Group found that:

  • 46 percent of companies said they couldn’t find the talent they needed
  • The workers most in demand were skilled trades workers such as electricians and welders
  • The employers said a lack of applicants was the No. 1 reason for the deficit, followed by a lack of experience

The result: The United States faces a national labor shortage in general construction and skilled trades such as plumbing, welding, electrical, and HVAC work. Its future impact will have a devastating effect on the economy – for everyone.

A 4-YEAR COLLEGE ALTERNATIVE

A four-year college degree still makes sense for students who expect to be able to find gainful employment in their field. No question that earning a college degree increases your annual salary potential, regardless of the field you’re interested in pursuing. Those with a bachelor’s degree typically earn nearly $17,000 more per year than those with only a high school diploma. While college is an excellent option for some, it isn’t for all. Nationally, 20 percent of those who start at a traditional college do not complete a degree. And 65 percent of college seniors graduate with student loan debt averaging $29,000.

The outdated maxim that “all kids should go to college” isn’t accurate. MyCollegeGuide.org estimates that while achieving a four-year bachelor’s degree program costs in-state students an average of $127,000, the cost of a trade school degree is only $33,000 – a savings of $94,000!

So while a skilled trade education is perfect for the many students who want to enter a specialized workforce faster and with much less debt (if any at all), there are still questions to answer. HSI will help students answer these questions and many more.

LABOR SHORTAGE STATS

There is currently a shortage of workers in construction skilled trades. *

The gap has widened over the past 5 years...

and it's expected to worsen in the coming years

BLS predicts an additional 200,000 construction trade job openings each year to 2026, due to labor force exits (retirements, etc.)

Because of labor shortages during 2018, larger portions of builders have had to:
  • TURN DOWN PROJECTS (40%)
  • ACCEPT NEW ORDERS AT A SLOWER RATE (32%)
  • LOSE OR CANCEL SALES (26%)

Less Labor Supply Means Rising Costs And Job Delays.

* Carpenters (Rough and Finished), Electricians, Excavators, Framing crews, Roofers, Plumbers, Bricklayers/Masons and Painters

WHAT THEY'RE SAYING


THE TOP CONSTRUCTION INDUSTRY ASSOCIATIONS REPORT THAT THERE IS CURRENTLY A SHORTAGE OF WORKERS IN SKILLED TRADES, WHICH COULD HAVE DIRE CONSEQUENCES.


MEDIA OUTLETS ARE ALSO DOCUMENTING THE PROBLEM AND EXPLORING THE CAUSES AND POTENTIAL SOLUTIONS.

Ways YOU Can Partner With Us

Hub & Spoke’s workforce institute is a non-pro t 501 (c) (3) organization that works with companies, governments, schools, the community, nonprofits and other organizations to address the increasing need for skilled trade workers. Our partners will contribute more than money. Their ideas, volunteer power, in-kind support and more will help build a strong base of tomorrow’s trade leaders.

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8100 E 106th Street, Fishers, IN 46038