Stakeholders Sound Off On How the Trade Labor Shortage Is Impacting the Home Improvement Industry — and What We Can Do to Fix It
We’ve long known that a worsening skilled labor shortage is impacting the home improvement industry, making it harder for businesses to thrive and grow — and even for homeowners to connect with professionals to finish home projects. But what’s actually at stake? What’s the tangible impact on business owners? And what are the real, workable solutions that stand to solve the problem and get us back on track?
HomeAdvisor and Angie’s List teamed up to survey 800 home service professionals and interview key stakeholders to get the unique perspective of those hit hardest by the crisis. Here’s what home service professionals, students, educators, and even the leaders of HomeAdvisor and Angie’s List themselves have to say about the skilled labor shortage and what we can and should do to fix it.
An aging skilled workforce is retiring, and young people aren’t pursuing careers to take their place. The resulting knowledge gap stands to cripple home improvement and infrastructure for years to come.
Nearly 70 percent of pros responding to our skilled labor survey say they rarely or never see recent high school graduates joining the skilled trades. Further, respondents indicate that just 11 percent of candidates applying for open positions are between the ages of 18 and 24.
Data support the point. The median age for workers in construction and services to buildings and dwellings is 43 years old, according to the U.S. Bureau of Labor Statistics. And workers under the age of 25 make up just around 10 percent of that total workforce1.
HomeAdvisor and Angie’s List see a similar trend: Less than 4 percent of the remodeler, electrician, HVAC, plumber and builder business owners in our networks are between the ages of 18 and 24 — and just 8 percent of roofers.
“A lot of baby boomers are retiring, and today’s young homeowners probably know less about home improvement than homeowners did, say, 20 years ago. They’re going to rely more on people to help them — and we just have a mixed bag. We’re going to have a supply and demand problem.”
– Angie Hicks, Angie’s List
The implications are far-reaching. As more workers age out of the skilled labor trades — and far fewer come in to replace them — a critical talent pipeline is diminished. The outcome is that we fail to pass on the fundamental knowledge and skills needed to keep our homes and infrastructure in good working order, not just in the near term but well into the future.
“The absolute worst scenario is that we get hit high and low — we get hit with real labor shortage in the trades… and we stopped thinking about how kids could go into different types of trades across different kinds of industries… So, now you have none of that infrastructure and none of those kids going into that… and we’re not giving kids direct, hands-on training and colleges even aren’t moving quickly enough. So, you’ve got kids with lots of debt graduating from college unprepared and not being able to fill those roles because they don’t have the skills. And you end up getting hit high and low with tons of jobs open and nobody qualified or able to take them. It’s tough because you’re needing help with your home or manufacturing or commercial construction, whatever it may be, and that slows down. And not even businesses like HomeAdvisor and Angie’s List can’t get the talent at the top. So, we all get harmed because we have a total mismatch.”
– Chris Terrill, HomeAdvisor
A shortage of skilled laborers is restricting business operations and growth in the trades.
What’s more, over half of professionals indicate that they are either currently turning down jobs or that they will have to turn down jobs in the next two years as a direct result of the skilled labor shortage.
“I’m opening in the Florida market right now and working with a publicly traded developer. He said he’ll have almost 1,000 houses that he can’t sell because he can’t get a roof on them. It’s the perfect opportunity — a good way to start — but I can’t take all of those now; that’s way too many properties. I said, ‘Give me 300, but there’s no way I can fulfill 1,000.’ I’m bringing a couple of crews from here, I’ve found some crews there, and I’ve partnered with another company. I’ve been calling all the people I know, and everyone’s scheduled out about six to eight months — and crews are being taken off jobs. It’s the same situation as here.”
– Josey Parks, Metal Roofs of Texas
This not only makes it difficult for businesses to grow to their full potential, but it also makes it difficult for homeowners to connect with pros. Consequently, it’s led to delayed home and building projects, shrinking home inventories, and inflated home prices and home project costs across the nation.
With fewer young people entering the trades, the situation only stands to worsen.
“In 2008, we were only in the Philadelphia market and since then, we’ve actually grown to more than 14 markets across the country… We’re currently at 2,400 employees… For us, our growth has exacerbated the need for a constant pipeline of talent.”
– Michelle Bauer, Power Home Remodeling
In the near term, businesses must create internal solutions to combat the impacts of the skilled labor shortage. Recruitment and retention are more important than ever.
“Whenever you build up a good labor crew, they’re very valuable because it’s hard to find really skilled laborers. We’re known in this market for having these experts. We’ve been fortunate enough to build good relationships with them, so they’ve stayed loyal to us. However, they tell me all the time that they have guys come around and try to get them off the job.”
– Josey Parks, Metal Roofs of Texas
Interestingly, professionals aren’t looking for candidates with extensive experience. Over 90 percent say a strong work ethic, a positive attitude, physical ability and endurance, and a desire to learn the trade are most important in a candidate. And 80 percent say their jobs require zero to three years’ experience in the field.
“One of the biggest pieces of feedback we get when we do employee surveys around what makes them love their job or what they want to see more of has a lot to do with: Am I making a difference in the world? Am I challenged? Do I have opportunities for growth? And we really challenge our people to grow and develop. Retention is better because they’re not looking for the next opportunity to do something new because they’re not getting challenged and doing new things within the company.”
– Michelle Bauer, Power Home Remodeling
Word of mouth plays the biggest role in recruiting. Nearly 75 percent of pros report using referrals over online job postings, classified ads and other methods by a large margin. This, coupled with the fact that many businesses have resorted to recruiting straight from competitors’ job sites, only serves to underscore the importance of keeping established employees happy.
Ultimately, until the skilled labor shortage is addressed on a grander scale, it will be up to employers to create internal solutions to combat the impacts.
“Over half our crews are direct referrals from existing groups that we have. If you didn’t like who you worked with, you wouldn’t refer your family member to come work here – or your best friend, or whoever… Everybody has to have a recruitment plan. If you’re going to stay in business, you always have to have consistent employees coming to you… Each one of our crews is incentivized with a referral fee if they refer a crew to us… They get a pretty decent-sized kickback just to say: ‘Thank you; those guys were good.’ So, they know: ‘Man, I want friends to work with somebody that will treat them right. Plus, I get a really sweet kickback for it at the end of the year.'”
– Logan Hall, Vivax Pros
Women are an untapped workforce. Focused efforts should be made to recruit more women into the skilled labor trades.
“There is a demand for workers, so the industry cannot afford to overlook half of the able-bodied workforce. In 2014, only 8.9 percent of skilled trade workers in the United States were women. And peak residential construction employment is lagging behind by over a million workers. It will be impractical to fill all, or even the majority, of those positions with men. So, how should women be encouraged to join the skilled labor workforce? The first step is the dissemination of information.”
– Alexandra Goriounova, HomeAdvisor Scholarship Winner and Student at University of New Haven
Solutions may include cooperation with existing organizations such as the National Association of Women in Construction and CalApprenticeship, the creation of women’s trade and student associations, grant and scholarship programs, and mentorships, among other concerted efforts.
“We’re going to have to solve this many ways, and attracting women to the trades should be included… We need to think about every option here. This isn’t just the kind of people that were historically attracted to the trades. It’s really creating an environment where people understand these are jobs that anyone can do.”
– Angie Hicks, Angie’s List
Apprenticeship programs and vocational education will play a key role in closing the skills gap and solving the skilled labor shortage.
“I will say it’s really expensive to offer programming in the trades. So that’s one thing that we battle with a lot, and we’ve been looking around for some good multi-skilled pre-apprenticeship programming as a precursor to apprenticeship programs in the individual skilled trades. It’s just a little more tricky than in industries like tech or business to think about how we actually connect curriculum and opportunities with high school students. Especially because students can’t enter many existing apprenticeship opportunities in the trades until they turn 18.”
– Lauren Trent, CareerConnect, Denver Public Schools
Of course, stakeholders specify that cost and curriculum will present a unique set of challenges in expanding vocational education and apprenticeship programs. And since many apprenticeship programs require participants to be 18 years of age — and since there are laws and rules regarding class credits — policy changes and clarifications may be required to make the best use of existing resources. Stakeholders agree that businesses and schools will have to work together to address these challenges and increase interest from the outset.
“Make opportunities in vocational careers known to the student population and invite more speakers and representatives to speak on those kinds of careers, focusing not just on providing information but to provide a pathos by giving kids an emotional reason to want to aspire to be successful tradespeople. Partner with employers to create a pipeline for students to get vocational training while in high school… I believe the two things that would have the greatest effect on the shortage would be to integrate vocational training programs into both high schools and universities, thus getting rid of the notion that careers in the trade are completely isolated from other career paths.”
– Chase Olson, HomeAdvisor Scholarship Winner and Student at Minnesota State University
Educational opportunities also exist outside of high schools. There is a benefit to introducing skilled labor careers at the elementary and middle school levels, when students begin to form career interests and identities. And integrating trade education at the university level can introduce opportunities to advanced students seeking a clear direction for the future.
“It is important to consider the students already in a four-year college as well. Many students in their freshman and sophomore years have an undeclared major and are taking core classes. Career fairs at universities typically target the upperclassmen, but a career fair for skilled labor that is geared towards the underclassmen could spark interest in students who are still undecided about their career path.”
– Alexandra Goriounova, HomeAdvisor Scholarship Winner and Student at University of New Haven
“If we can remove regulatory barriers and issues so that this process can naturally and organically happen, then it’s a big win… There are some laws and rules around credits for classes, and when they go to school, those things have to be part of the system. We just haven’t built that. Businesses can bear a huge cost, which is a big impediment. And I think they can be the ones that help go downstream and help educators understand what is needed in the real workforce. And then I think they can give people the opportunity to show they have the intellect and capability, and if trained they can be good workers.”
– Chris Terrill, HomeAdvisor
A perception problem is largely to blame for the current situation — and it’s been catalyzed by an enduring emphasis on higher education.
More than 60 percent of survey respondents agree that there’s a lack of respect for blue-collar work in America.
Stakeholders concur that it’s largely an unintended consequence of our nation’s emphasis on the importance of a four-year college degree. Decades ago, the American educational system began to phase out vocational classes and encourage all students to pursue a college education. As a result, students who did not grow up in households among skilled labor workers were given little exposure to career options and mentors in the skilled labor trades. As blue-collar jobs were deemphasized, the notion that vocational education is less desirable than higher education perpetuated.
“What we’re facing is interesting. Our new hires get excited to start working at Power because we have a reputation as the number one place to work for millennials… But a lot of times a young person will go home and tell their parents: ‘I’m selling windows.’ And they say, ‘Wait. What? You didn’t go to college for that. I can’t believe you’re selling windows!’… We’ve had to work really hard to overcome some of the objections that our new hires face from their friends and family.”
– Michelle Bauer, Power Home Remodeling
“Guidance counselors use careers in the trades as ‘cautionary tales.’ And now, more than ever, the view on the trades is considered lower class, not to mention, we refer to the lower middle class as the ‘working’ class… Four-year programs are perceived by this generation to be the social status standard., with vocational programs looked at as alternative.”
– Chase Olson, HomeAdvisor Scholarship Winner and Student at Minnesota State University
“In the United States, career and technical education is often stigmatized, and there is a widespread perception that career and technical centers provide a lower quality education or that students who attend such schools are less capable or have lower aspirations,” explains the Great Schools Partnership — a nonprofit school-support organization in New England3.
Among the greatest misconceptions are that the trades offer little chance for high salaries and upward mobility and that the work is physically hard but not mentally challenging.
In truth, many of today’s trade laborers make over six figures per year. What’s more, the trades offer the opportunity to not only use your mind but also to own and run your own business — a primary motivator for the millennial generation and a key reason home service professionals enter the profession, according to past HomeAdvisor surveys4.
“I think that some of the stigma you experience around the skilled trades is just an information gap around what the career opportunities are… One question I know that a lot of educators have in their mind if they’re consulting students and prompting students to think about a range of careers is: ‘Do I feel comfortable that this is going to be something that’s going to lead to lots of opportunities for upward advancement and not just something that they’re going to get stuck in?'”
– Lauren Trent, CareerConnect, Denver Public Schools
“We’ve got painters that earn $60,000 to $100,000 a year. And I would agree that there’s that view from millennials, like ‘I need that $100,000 job — and I need four years of school to do it.’ There’s a misconception. I thought the same thing in high school, that I needed to go to college to make money. No, you don’t. I’m not even using my degree. It’s a biology degree and I’m running a construction company.”
– Logan Hall, Vivax Pros
To effectively implement solutions to bridge the skills gap, we’ll need to alter deep-seated perceptions about the skilled labor trades and the importance of a four-year college degree.
Nearly two-thirds of pros surveyed agree that an improved perception of blue-collar work would have a moderate to major impact on the labor shortage.
Of course, the stigma surrounding the skilled labor trades was cultivated over several decades, and changing that perception won’t happen overnight. So, the question is: Where do we start? What might have the greatest, most immediate impact not just in attracting young people to the labor trades, but also in re-framing skilled labor careers as aspirational paths to pursue and be proud of?
“To address this issue, there’s two notions that need to change. One: The younger generation needs to value hard work as past generations have, and two: We need a reason to consider vocational careers aspirational. This would be the hardest issue to address, however, I think it would have the greatest effect on the negative view on vocational careers… As a society, we idolize and closely watch successful businessmen such as Bill Gates, Steve Jobs, Elon Musk and Mark Cuban. Yet, we rarely hear of or talk about the success stories of people… in blue-collar career fields… We need more blue-collar public figures who appeal to the younger generation.”
– Chase Olson, HomeAdvisor Scholarship Winner and Student at Minnesota State University
“When I was growing up, I would hear adults say things like: ‘Why don’t you try harder? Do you want to mow the lawn for a living?’ This automatically sets children up to associate physical labor with failure… I confess to having the same perception before my father started his own handyman business. His work really changed my attitude towards skilled laborers. The work they do isn’t low or menial. It requires patience, hard work and diverse knowledge… All jobs are necessary to the functioning of society. Unless this negative perception of skilled labor is removed, the struggle to fill the labor shortage will be long and arduous.”
– Alexandra Goriounova, HomeAdvisor Scholarship Winner and Student at University of New Haven
Stakeholders agree that it starts with a partnership between professionals and educators to generate greater exposure, hands-on training and messaging in the schools — and that even Hollywood, corporations and mass media can play an important role in expediting the outcome.
“What we’ve done, and what I think the industry can do a better job of, is really rebranding yourself and highlighting what opportunity there is in this industry — what impact it has not only on the individual homeowner but also on the environment… really talking about the positives of the industry and moving away from some of the things that are potentially negative, some of those stereotypes that exist and how you can rebut some of those… Working really diligently towards the changing those stereotypes could go a long way in making people feel more comfortable coming into the industry.”
– Michelle Bauer, Power Home Remodeling
“I think our college-or-bust mentality has had real consequences. It means kids are getting a college degree even if that college degree is worthless; even if they have a degree, that doesn’t mean anything if they’re loading up on debt. And so, how do you adjust that college-or-bust mentality… I think it comes down to getting kids to understand this is interesting and getting parents to understand that this is valuable. And then having educators appreciate that, yes, you’re taking some time away from the classroom, but what the kids are learning is really valuable. So, I think if you can change the narrative and realize that real-world experience, whether it’s an apprenticeship program or whatever, benefits high socioeconomic, low socioeconomic, high achievers, low achievers — it’s a win for everybody.”
– Chris Terrill, HomeAdvisor
“Hollywood often portrays blue-collar workers as alcoholics, drug addicts, or people who beat their wives, you know… except for Tim Allen. He did really great for the trades and was the person who made it look good — people saw his happy family and how he lived well. But, there are not many other positive depictions out there except This Old House, of course. Sitcoms didn’t shed a good light on our industry, so we definitely need to bring sexy back. Contractors need to show up in the schools and get more involved. We’ve got to try many approaches and see what sticks.”
– Josey Parks, Metal Roofs of Texas
“Angie’s List and HomeAdvisor can play a unique role here because it really is a brand awareness and brand perception issue. And I think that plays to our strong suits and our abilities to be able to change that reputation. A single plumbing company — even the biggest plumbing company in town — is not going to change that reputation for the city. It’s got to be a bigger endeavor. It’s really about telling the story of what’s possible in these roles, so people understand. In some of these companies, you end up working your way up, and you can be an entrepreneur running a great company making a great living. And those stories aren’t being told.”
– Angie Hicks, Angie’s List
Emphasizing entrepreneurial and monetary opportunities will go a long way in improvingperception and generating interest in the skilled labor trades.
With our nation’s emphasis on the importance of a four-year college degree, more and more students are graduating tens of thousands of dollars in debt with no clear career path. The cost of a moderately priced in-state public college, plus room and board, averaged $20,770 for the 2017-2018 academic year, according to a recent College Board college pricing survey5. That means the average four-year student will pay more than $80,000 to get a college degree before the accrual of student loan interest.
“It’s a ladder. You climb that first step — you get in and you start to work hard, you have good character, you’re honest, you do what you say, you say what you’re going to do, and you advance. You climb that ladder, and before you know it, you’re the foreman; you’re leading that crew. You don’t have to know everything, but if you’re someone who’s willing to try to solve the problem, ask questions, and communicate well, you’re going to grow. There’s no doubt about it. And people in their first few years can definitely make $100,000 in the trades.”
– Josey Parks, Metal Roofs of Texas
“The trades can be a great way to access being an entrepreneur. You have the enjoyment of being able to build a business… One of the things that I am most proud of over the years is being able to build something that helps other people, that employs people in my community and really can give back. It’s important. And that’s an element that being in the trades can give. Trade companies are a lot of times core parts of a local area’s community — and an important part of it… It’s a chance for them to be their own boss and do what they want — to run their business and make their mark.”
– Angie Hicks, Angie’s List
Remarkably, according to a study by organizational consulting firm Korn Ferry6, 2018 college graduates in the United States will make an average of $50,390 per year. This is roughly the salary of a plumber or electrician with journeyman status, which is typically attained after four to five years of paid, on-the-job training — and without the $80,000 price tag of the typical college degree.
“A lot of the skilled trade profession looks like a ton of small business owners. They have the skills and they’re unique in that a lot of them are their own businesses. And so, we’ve been thinking about: How do we pair some of the language and programming that we use around this field trade with something around entrepreneurship in business? Both as a way to well prepare them and also to combat that perception that you’re really stuck. I mean it’s really kind of like you’re the owner of your own destiny.”
– Lauren Trent, CareerConnect, Denver Public Schools
“There are two specific incentives that must be communicated for students to choose to attend a trade school and pursue skilled labor: financial benefits and long-term potential… Blue collar work is often associated with low salaries and even unsteady paychecks. Provide evidence to the contrary… Stress the ‘skilled’ of skilled labor.”
– Alexandra Goriounova, HomeAdvisor Scholarship Winner and Student at University of New Haven
Mobility and entrepreneurship opportunities are further compelling. Skilled laborers such as plumbers and electricians can move on to become masters of their craft, making upwards of $90,000, according to HomeAdvisor’s Salary Guides. And professionals in just about any skilled labor field can rise through the ranks to manage teams and projects — and even own and grow their own businesses.
| Plumber Pay Scale | ||
|---|---|---|
| Skill Level | Hourly | Yearly |
| Apprentice (starting) | $15 – $20 | $20,000 – $45,000 |
| Journeyman | $20 – $30 | $40,000 – $55,000 |
| Master | $30 – $45+ | $55,000 – $90,000+ |
| Electrician Pay Scale | ||
|---|---|---|
| Skill Level | Hourly | Yearly |
| Apprentice (starting) | $10 – $20 | $20,000 – $40,000 |
| Journeyman | $20 – $30 | $40,000 – $55,000 |
| Master | $30 – $45+ | $55,000 – $90,000+ |
The skilled labor shortage can’t be solved in a vacuum; it’s going to take a collaborative effort to find an integrated solution.
A shortage of skilled labor in the home improvement trades affects all of us — from students and families to professionals and business owners to anyone who owns or lives in a home or apartment. And it’s going to take a concerted, collaborative effort among industry stakeholders to solve it.
The good news is that we’ve seen it work in other nations, such as Switzerland, where cooperating stakeholders have carefully crafted a proven apprenticeship model that gives students practical experience and meets the evolving needs of businesses. (Under the Swiss model, 70 percent of all students choose apprenticeships and most CEOs have been apprentices7.) And pros, educators, businesses and government entities have acknowledged there is a problem and expressed a willingness — and a determination — to act across the United States.
Nearly half of pros surveyed say they would be personally willing to work with schools to help increase the availability of skilled laborers in their trade. And many other stakeholders have already begun to consider and implement programs to address the growing skills gap and increase the exposure young people get to varied careers.
“I think contractors have to be the leaders in solving this skills gap by getting involved with their communities. I don’t think that addressing this at a national level is going to work. It’s got to start in the community — a grassroots effort. Every single contractor has to play a role, big or small; it doesn’t matter. You have to get out there and connect with schools, the community, and the people in your network. If contractors want the future workforce, they’ve got to go out and get the future workforce. Period.”
– Josey Parks, Metal Roofs of Texas
“I think we’re in the phase of people starting to collectively agree there’s a problem. The second biggest challenge is: What’s the solution? You’ve got some people who want the solution to be a federally mandated program, and that has an upside and downside. You’ve got people saying: ‘No, let the states help.’ Others are saying: ‘No, let it be the nonprofits or schools.’ Others are saying: ‘No, let businesses solve it.’ A fragmented solution, even with lots of money coming into it is not necessarily going to be a good solution. Everyone has to galvanize and come together and really pragmatically address the situation.”
– Chris Terrill, HomeAdvisor
There’s no denying the fact that the greatest challenge we face currently is getting more young people interested in joining the skilled labor trades. And if we fail to act now, we fail future generations — leaving them without the critical resources necessary to build and maintain the homes and infrastructure we’ve come to take for granted.
Only by working together — not only to address the stigma attached to skilled labor head-on but also to develop practical, scalable policies and programs to meet the needs of students, businesses and society as a whole — can we truly close the skills gap and ensure an unbroken future.
“You’re not just working with one industry; you’re working with so many individual organizations, like the various trade unions. I just think: How could we do that? But maybe if there was another sort of intermediary organization that could… make it easier for us to engage with the trades… that could be really helpful.”
– Lauren Trent, CareerConnect, Denver Public Schools
“Lots of folks are seeing the problem. There’s lots of money flowing into solve the problem, whether through scholarships and things like that… But that’s not where the bottleneck is right now. It’s getting to the top of the funnel… Getting people interested is our biggest challenge.”
– Angie Hicks, Angie’s List
