Let’s talk about the skilled trades

This post is, in some ways, a sister to the post I did earlier on college and whether it was worth it or not. You can find that post in the link below.

There is much more information to be found here, however, detailing why skilled trades are the way to go for many as opposed to college. Without further ado, let’s dive right in.

This is a topic near an dear to me and as such I can write/talk about it for hours. I can recall during my time in high school many years ago the faculty stating the same thing over and over: you have to go to college to get a good job. This, as I came to learn, was horse crap. There are opportunities out there which do not involve college at all and I happen to be living proof. As I write this, my wife of 8 years stopped working over 7 years ago when our oldest daughter was born, we have had two additional children since then, and she has stayed at home the entire time. We have lived off my sole income for all these years, all while paying an exorbitant amount of child support for my now 19 year old son (perhaps a post for a later time but I can promise you my scenario is vastly different from 99.9% of other persons). Now we live fairly simple, nothing extravagant mind you, but I know a lot of people who have gone to college and cannot do what my wife and I do. 

Check out my post on college and whether it is worth it or not.

I stumbled into the skilled trades pretty much by accident. I, like many of you, was bludgeoned over the head during school years about a preconceived need to go to college to get a good job. This, as I have already said turned out to be untrue. When I graduated high school I did go to the local community college right away because it was what I was told I should do. Working full time and going to school full time I could handle but when I had a son something had to give. I stopped going to school and marched onward.

Fast forward to a couple years later and I found my way to an apprenticeship as an Iron worker. I completed said apprenticeship with perfect attendance, outstanding apprentice, and with honors to boot. I stayed steadily employed, honed my craft, ran jobs from simple to complex, and after 17 years have much to be thankful for.

You see, I am living proof you can blow holes in the whole “college” nonsense and I am sure I am not the only one. In fact, I know a great deal of people who, while not in the same situation also make a good living from being in the skilled trades. 

I know people who travel with their family, living a transient life (hey, they actually enjoy it) but make a great deal of money. I know guys whose make a years wage in only 6 months working shutdowns. I know guys who work a steady 40 hour grind and make more than many of their college counterparts. I personally know guys who, with no overtime, make $80,000 a year with benefits and they routinely break $100,000 with overtime. In my annuity post I wrote how some guys in the trades have over $2,000,000 in their annuity funds!

And this is just the beginning. Sometimes I wonder where they pool from when they do wage studies of high school vs. college lifetime wage earnings; silicon valley and minimum wage jobs? In my experience, I just don’t believe it. What we really need is a lifetime study of college graduates vs. skilled trades; I’m betting the numbers are different.

Let me try this at another angle.

When looking at the skilled trades shortage, there are no end to articles discussing the very problem. Check it out with articles here, here, and here.

 

Three articles seems to be a good number to stop at but the sheer number of articles out there is staggering.

My approach used to begin with the nobility of working with your hands, crafting something, and enjoying the fruits of a good days work. There is nothing like the sleep of the craftsman.

However, there is far more on the side of skilled trades, such as pay, no student loans (read: debt), and simple supply and demand. Again, there is that number three. Maybe it’s a powerful secret in life. It could be just random chance. Whatever it is, let’s examine each of these to see how the arguments fare.

Skilled Trade Pay

In the articles above, the pay for those in skilled trades has risen dramatically and while there are many factors as to why this is, one reason is simply supply and demand (more on that later). As I wrote earlier, I know a number of guys who make $80,000 with benefits and even more with overtime. I know guys who routinely make over $100,000 in pure wages not to mention the benefits ON TOP OF THAT. The caveat here is I live in what I would consider a lower wage area (but a higher cost of living, go figure). There are plenty of places where those wages I write about are HIGHER; MUCH HIGHER.

The craftsmen who go into the skilled trades are increasingly seeing the pay increase. For example, Forbes contributor Jim Morrison writes, “as the labor shortage intensifies, it will push salaries even higher.”

 

Here is a perfect example: Currently, there is a long term project going on right now (not in my area) as I write this piece (July 2019) slated to last for a few years at least working 5 – 10s and an 8 (5 – 10 hour days and an 8 hour day) at $35.49 an hour. Do the math: that’s $120,000 a year, and that is ONLY the wage; the benefits are on top of that! Interest peaked yet? I thought so. While I’m at it here are the benefits for that particular job/location:

Pension contribution: $9.87 per hour

Health care: $11.85 per hour

Annuity Fund: $7.99 per hour

Total: $64.20 per hour

Now, a 40 hour grind 52 weeks a year gives you a total of $163,303.92. When you consider the 5 – 10s and an 8 the total with benefits is $209,767.92! Have I got your attention yet? Good! It has mine, too. So much so in fact I have contemplated moving my family to take advantage of this prosperous opportunity.

I freely admit this particular job is an anomaly; it doesn’t come along too often but when it does, man oh man, you got to praise the skilled trades. Oh, and that’s why I included the 40 hour grind for a year because while this particular job I’m talking about may be rare the 40 hour grind is not – many earn that across the country every year.

On the opposite side of the spectrum are a number of college graduates who have trouble finding a job after getting their degree, work a job that’s unrelated, and end up making far less than what they were expecting. And if that wasn’t enough there is student debt to pay back on top of it all. For many this is an everyday reality since listening to the age old lie of needing to go to college to get a good job.

Sure if you land a job in silicon valley you’ll easily make six figures, but even that can seem like poverty wages.

Yes, I realize there are people who go to college and get good, high paying jobs: lawyers, doctors, veterinarians, software developers, engineers, etc. But from what I have seen and of course read the market isn’t there for what I’ve coined “the market being saturated with college degrees.” They are the random obscure degrees which are offered by colleges and universities ad hoc.

I also know there are people who do not go to college, even learn a trade, and are rather poor. Some of this is circumstance, poor personal behavior, where they live, who they work for; the reasons are as many as guys who work the trades.

But you know what? So are the reasons for those with college degrees. I know some people who work in office environments where thr pay is low. There are a lot of variables in either case and while I paint with a broad brush some facts cannot be ignored: the skilled trades are in my estimation a great place to make not just a living but a wonderful career with almost endless opportunities, learning experiences, and lifelong satisfaction.

NO STUDENT LOANS

I placed the title above in bold and in all caps because this is a BIG DEAL. Student loan debt has surpassed credit card debt and is the SECOND largest debt held, behind mortgage debt at a staggering $1.5 TRILLION!

I can’t scream this from the rooftops loud enough: THAT IS RIDICULOUS. I have been sounding an alarm for quite some time now of the growing uselessness of the obscure college degree. Gone are the days where you could merely get a degree and it would serve you in many capacities. Here, allow me to explain it the way I do for everyone else:

Teachers, guidance counselors, and even parents tout the absolute necessity of needing college for a “good job.” Colleges (who also peddle the lie) want the influx of students simply for the money (I’ll give them the benefit of the doubt and say they also want some measure of prestige) and wish to admit even more. The rub? The educational standards for the bachelor degree have been lowered for the massive influx of students who, in years past, would have found it difficult to keep up with the curriculum. Have a look at this article stating just that.

If the above is true for the more formative years of education you can be certain educational standards have all along the way declined.

Here’s another article about the decline of education.

While it is not the intent of this post to target college (I referenced a college post at the beginning of this post and it’s worth checking out) I certainly believe what I wrote above and believe it prudent for us to weigh things in the balance.

The cost of college has risen DRAMATICALLY over the past 20 years and many students borrow to pay for it. We all know debt, no matter what kind it is, SUCKS but the worst part is YOU CANNOT CLAIM BANKRUPTCY ON STUDENT DEBT. 

That’s right. You are stuck paying that astronomical amount of debt off even if it is at low interest. We finally paid off the last of my wife’s student loans a few years ago and she graduated in 2002 (that’s about 15 years for her and the amount she borrowed was little compared to many). Stories are plentiful of individuals paying on their student loans 20 – 30 years after leaving college. Crazy!

Want to see even crazier, as hard as that is to believe? Check this out right here.

Or this.

Even AARP, the premier organization for retirees, write about this astronomical problem.

So yeah, it’s a HUGE problem.

Several years ago I had an apprentice who, after working with him, told me he had $80,000 worth of student loan debt. He has since moved on to the Marine Corps, but I remember thinking how there he sat, next to others his age, and all things being equal he had an $80,000 albatross around his neck, weighing him down. He HAD to pay it back. And pay it back he shall – even if it takes him 40 years.

Before I move on, I want to emphasize one thing: parents shoulder just as much of the blame in many cases. I cannot tell you how many times I have heard over the years parents who tell their kids to just take classes when their child changes their mind mid semester – AGAIN. The fear is if they stop attending college now they won’t go back – as if that is something horrible anyway. Far from it. In all likelihood they shouldn’t have gone to college in the first place.

Here is what I recommend to ANYONE and I mean ANYONE who I talk to about this topic. Do you know what you want to do with the rest of your life? Excellent. If you want to be an attorney, doctor, vet, nurse, or engineer then pursue a degree – you will need it in the end. Actual careers where higher education is a must should pursue that tract. If you do not know what you want to do for the rest of your life then I advise you to GET A JOB. No seriously, get a job, any job. Why postpone adulthood for years simply because you do not know what it is you want to do for the rest of your life while racking up debt you cannot claim bankruptcy on? This is a no brainer to me.

The idea is simple: since you do not know what you want to do with the rest of your life you start in the workforce. It’s highly likely you will not like your job so you say to yourself “this job sucks. I do not want to do this for the rest of my life. Hmmm, what do I want to do?” The genius here is evident: Forced adulthood instead of prolonging it. The world needs more of this and so do your kids. If they have an ounce of gratitude they will thank you for this advice and me by proxy.

Apprenticeships, on the other hand, come at a very low cost. I don’t need to cite anything here as I am an apprentice instructor for over 12 years now in the very same apprenticeship I graduated from. While most of the learning is done via OJT (On the Job Training) you do learn theory in the classroom and valuable information applicable to your trade/craft. Apprenticeship costs vary but they can be as low as a few thousand dollars. Talk about a win; the return on investment (ROI) is superb.

As parents it is our job to raise productive citizens, enriching their lives, and engaging them in the process. We do them a HUGE disservice by promoting college when it, in many ways, is clearly not in their best interest. Take heed.

Supply and Demand

Closely linked with skilled trade pay, these two go hand in hand in many respects. There most certainly is a lack of skilled trades and evidence shows it is growing.

What does this mean? How did we get here? What do we do about it? How do we capitalize on it?

I’m not an economist but we can deduce when the supply of something is short people pay more; that’s fundamental. Those in the skilled trades have skills and they are in short supply; there is less going around than what is demanded and therefore the cost is rising. That means more in your pocket, plain and simple. I have already linked a Forbes article above about the lucrative careers many in the skilled trades are experiencing. This is because of supply and demand. And you know what? it is projected to continue for the foreseeable future.

The baby boomer generation is retiring in droves, leaving scores of jobs behind needing to be filled. There is ample opportunity for people to step into good jobs and overcome the stigma that working with your hands is somehow beneath most. This couldn’t be farther from the truth. I’ve already established nobility with the art of the hands.

So, what do we do about it? For starters, we stop stigmatizing skilled trade work. Contrary to what you may think or act upon it is vitally important and actually is necessary for the survival of our culture. Simply put, we HAVE to have people in the skilled trades. What a wonderful surprise and against the standard thinking many carry with them.

It is often said opportunity knocks only once. I don’t believe that perse, but I do know there is an opportunity of a lifetime in the skilled trades currently which will continue to grow for the foreseeable future. We would be foolish to not capitalize on it if we possibly could, and that is where people like me come in.

There is an unprecedented skills and age gap ahead of us regarding the skilled trades; one that hasn’t been around before until now. It is my hope over the years the skilled trades keep marching on, defying all odds, and demonstrating the invaluable worth they have.

Long live the skilled building trades!