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.


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.)


- 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.

According to a 2018 survey by the Associated General Contractors of America, ~80% of U.S. construction firms report difficulty finding skilled trade workers.
“Workforce shortages are significant because of their potential to impact the broader economy. Over the short term, as construction firms struggle to find enough qualified workers, they will be forced to be more selective in the number of projects they seek to perform, lest they find themselves unable to meet contractual obligations because of labor shortfalls.”
– AGC of America, 2017

“The construction industry lost 1.5 million workers during the recession, and we’ve only
brought back about 600,000”
– Rob Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy for the National Association of Home Builders
“Widespread shortages continue to restrain the pace of construction, further driving up construction costs, which are increasingly being absorbed by the home buyer. However, the shortages are also affecting builders’ bottom lines by causing lost or canceled sales and making some projects unprofitable.”
– NAHBNow

“The construction industry has a critical shortage of skilled workers,” said ABC President and CEO Michael Bellaman, … According to ABC’s Construction Backlog Indicator, the amount of work construction companies are contracted to do in the future stands at 9.9 months. Meanwhile, ABC estimates there are roughly 500,000 unfilled construction jobs today.
– Associated Builders and Contractors, 2018

Kevin Tighe, director of workforce development for the National Electrical Contractors Association, says electricians are currently retiring faster than new apprentices are joining to take their place: for every 7,000 electricians who join the field each year, 10,000 retire.


“Contractor backlogs and revenue expectations remain strong, but a shortage of skilled workers across industry trades weighs heavily on the commercial construction industry.”
– USG Corporation and the U.S. Chamber of Commerce
MEDIA OUTLETS ARE ALSO DOCUMENTING THE PROBLEM AND EXPLORING THE CAUSES AND POTENTIAL SOLUTIONS.

Labor Shortage is Creating Challenges to Finding Qualified Contractors For Home Repairs
Finding a qualified contractor to perform repairs on your home can be challenging because of a widespread shortage of skilled tradespeople. And when you do find one, projects can cost more and take longer to complete.
(The Washington Post, 2018)

Where Are All the Builders?
Construction costs are climbing and production is lagging, in part because there aren’t enough workers to go around.
(US News & World Report, 2018)

5 Jobs That Will Be The Hardest to Fill in 2025
Electricians and machinists both made the top 10 on The Conference Board’s labor shortages index …These jobs have large numbers of workers retiring, but fewer young people choosing these careers, which are also di cult to offshore or fully automate.
(Fast Company, 2016)

After Decades of Pushing Bachelor’s Degrees, U.S. Needs More Tradespeople
Skilled trades show among the highest potential among job categories … tradespeople also are older than workers in other elds … meaning looming retirements could result in big shortages.
(PBS.org, 2017)

High-Paying Trade Jobs Sit Empty, While High School Grads Line Up for University
The proportion of high school students who earned three or more credits in occupational education — typically an indication that they’re interested in careers in the skilled trades — has fallen from 1 in 4 in 1990 to 1 in 5 now, according to the U.S. Department of Education.
(National Public Radio, Inc., 2018)
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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