Why skilled trades have the best game in town

Being the advocate I am for the skilled trades, I’ve had the idea for this post some time now. I wouldn’t write it if I didn’t believe it but I’m going on record to say the skilled trades have the best game in town. This is true in more ways than one as we will read later and I don’t expect you to merely take my word for it, either. We will look at some facts, stats, and solid reasoning behind why I believe this to be true.

*NOTE: Typically, when I use the term skilled trades in these posts, I’m referring collectively to union and non union labor, and for many reasons. For the sake of brevity, though, I’ll narrow it down to just one: because there actually are some skilled tradesmen located in the non union sector. I certainly implore them to join a union because, as this post will demonstrate, I’m writing about those in the union sector this go around. Yes, there are skilled tradesmen on both sides; but the non union individuals statistically makes less money and that means less money available for retirement. Therein lies the difficulties with this post – only union tradesmen have the best game in town. *

Now, the times ebb and flow and those in the skilled trades know this all too well. So much depends on outside forces (economy, supply and demand, location) and while we have limited to no control over those forces it would not do for us to simply ignore them. They exert massive influence over everything I’m going to write and they should be noted as such.

Thing is, though, this almost always manifests itself in more than mere industry – entire economies and even countries feel the wrath of bear markets, trade issues, technological advancements, industry changes, and much more. Yes, there are pockets where it seems they are recession proof (think Washington D.C. here) but to be sure the effects are felt and are broad. It isn’t just applicable to those in the skilled trades or construction; those forces can strike at anytime and anywhere, dealing many professions a heavy blow. Forget thriving then – many struggle to just maintain. This happens to just about everyone and every profession.

Why do I even bring this up? Because the ebb and flow of things out of our hands is applicable to a lot more than the construction industry; it shouldn’t be something used against it as a weapon when it’s applicable everywhere and to just about everyone at one time or another. Industries across the nation and globe experience periods of fluctuation, slow downs, ramp ups, change, and periods of stagnation as well. These aren’t localized only in the construction industry; they are applicable across the board. Because this is so, we are being deceptive making this a negative in the construction market and ignoring it in others.

Now, since we have duly noted the above, let’s look at some of the reasons as to why the skilled trades have the best game in town. Sharp readers will note some of these reasons are shared by another article I wrote, Lets Talk About The Skilled Trades, which you can read by clicking the link.

The positives in that post weren’t exhaustive and they were not meant to be. They were a bit narrow for that particular post and had a different focus. This post, though, is focusing on additional positives and reasons why I believe the skilled trades have what I call the best game in town.

Supply and demand

As I stated in the other post, this is a stellar reason and is a phenomenal one to have in your arsenal. With this, you really can’t get any further down in fundamentals than this particular reason. If there is no demand for something then there will be no supply, simply put. As a matter of basic economics, supply and demand is defined by Oxford online dictionary as “the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”

• Definition of supply and demand.

Because I and many others not only forecast but insist there currently is a labor shortage, it translates into greater demand. Greater demand, then, in turn means greater earning potential. That’s a win in any book.

What kinds of shortage are we talking about? Check out some of the following links for further information:

• Shortage in skilled labor
• Engineering News-Record (ENR) writes about the shortage here.
• Another article regarding the skilled labor shortage.

I could find a thousand links but I think the point is made: the skilled labor shortage is very real. The why isn’t as important in this post as is the how that shortage is dealt with. So, what does that mean for those already in the skilled trades? Better security and higher wages. It means fewer people to do the same amount of work, it means the need for those fewer workers increases, and the wages for those workers increase. I realize I am broad brushing and not factoring in various nuances but overall, the above is applicable to those in the various skilled trades.

To augment my point further, it’s necessary to cast light upon the abysmal prospects for many college graduates. Another way to look at it is the reverse of the above: supply and demand. For many occupations, there is far more supply than demand, which drives down the wages and fewer opportunities exist as a result. Think about it for a minute. How many college graduates do you know who have a hard time getting a job after graduating? The problem is compounded when you consider some of those obscure degrees people major in (never mind the non bankruptcy debt accumulated in pursuit of that degree).

Have a look at this article highlighting some of the worst degrees. This next short article is somewhat comical but you can read about what they deem are the worst college majors here.

I could continue on but I won’t. Instead, I want to appeal once more to your personal experiences at this point. I’m willing to bet just about everyone knows someone having difficulty finding employment after graduating college. I could step on my soapbox and vent some about the college lie but I’ve already done that. Check out the following article below (and the one above) for a more in depth look at college and skilled trades:

Retirement

If you are in the skilled trades and under a collective bargaining agreement (union) then this article resonates with you – and the retirement part of this is no different. I don’t want to go too much into depth here but there are two different types of retirement plans: defined benefit and defined contribution. Defined benefit would be what the name suggests: the benefit is defined. For example, the monthly amount you get is defined. Think pensions and social security here. Defined contributions, on the other hand, are where the contribution to the account is defined. This is where a certain percentage is put into an account. An example of this would be 401ks, Thrift Savings Plan (TSP) for those working for the government, and for the skilled trades, the annuity fund.

Check out this article on defined benefit vs defined contribution for more information:

I also have a whole category dealing with retirement with several articles and you can check it out here.

And guess what? Thanks to collective bargaining, skilled tradesmen have BOTH. Have I got your attention yet? No? How about this: Both of these are fringe benefits, meaning they are outside of your wage – the money you cash in and keep. Those skilled tradesmen do NOT pay into those retirement accounts – through collective bargaining they are set up, maintained, and contributions are made for them.

Do you know what that means? Any money they save for retirement themselves (which I argue should be done aggressively) is ON TOP of the defined benefit (pension) and the defined contribution (annuity fund). Perhaps I have your attention now? If not, then I should because, as the article below informs us, 45% of Americans have NO RETIREMENT SAVINGS AT ALL!

I detailed this elsewhere but I can recall engineers stating those in the trades made too much money. Jealousy, anyone? It’s as if they feel they should make top dollar but no one else is allowed to. Because they went to school they feel as though they should be compensated but others are not worthy of it. I don’t want to follow this rabbit trail down too far, but suffice it to say I heartily disagree.

Now, to be sure, with those covered under collective bargaining agreements, this means higher costs for customers but in return they are getting better quality, better skill, safer job sites, and more bang for their buck. Now, unless you work behind the scenes, you probably don’t dabble with insurance from a company aspect. Even so, know this: insurance plays a HUGE part when it comes to company operations. And you know what keeps insurance premiums down? Safe quality work.

The continual push for safety from those covered under collective bargaining agreements has given rise to more safety managers, industrial hygienists, and protection on the job via rules and regulations. Here is an article about that very thing. Here’s another from attorneys detailing a major difference between union and non union job sites. Even the Bureau of Labor Statistics (BLS) details a study done in Massachusetts regarding the fatality numbers between union and non union. Additionally, I have personally seen this play out of the course of the past 18 years also.

In New York City, some officials theorize the rise in accidents on the job is directly related to the rise in non union construction. They want a way to track this correlation and it is recommended the accidents be classified union or non union to see the data much more clearly. That article can be found here.

This whole thread is brought up because union workers and job sites are routinely safer, saving money in insurance premiums and other costs – a large amount of money no matter how you measure it.

Good retirement should be a key condition for those in the skilled trades – and some have it. Those covered under collective bargaining do indeed have some great options at their fingertips and I personally know guys who are millionaires in their retirement packages. That is certainly nice to know.

Good employment and NO DEBT

Here is an article about companies who do not require a college degree – jobs don’t require a bachelors degree, it’s the companies that do. Skills matter more, reports NBC news. Next is another article why companies should open their hiring process up and forget about bachelor degree requirements. Though this next list mentions professionals, it still is an example of companies going away from requiring college degrees.

I love this next link. They effectively say companies are guilty of “degree inflation” and they should stop that practice – and I think, in retrospect, they are right. Or, at least, stop whining when you don’t get the qualified employees you really need. This also applies to the government as well.

A well written article about the connection between the number of college degrees, it’s value, and how companies should stop restricting their hiring pool to only those with college degrees.

I LOVE this next one: Busting through the College Industrial Complex. I don’t know who came up with the term but I WISH it had been me. Alas, there is a limit to my ability to be quippy. Oh well. There is always next time.

Have you done your research? Do you know the educational standards have slipped tremendously over the past century? Essentially, if you are wondering, the college degree has become the new high school degree (I could probably write a whole article on this and I have been saying it for years now – to allow for a massive influx of people seeking degrees, educational standards have been lowered to accommodate). Forbes writes about college devaluation, which you can find here.

If you think the amount of hyperlinks I’ve provided is excessive then I’m inclined to tell you I could have provided A LOT more. Seriously, there are SO MANY articles out there which reinforce my point it’s ridiculous. I only included a small sample but if I were exhaustive I could have been extremely thorough.

Although I’ve listed many different articles for stats and examples, none of those are my go to when driving home this point. I have something much better, as it were, and it, in my opinion, bolsters the point like nothing else I’ve come across.

A few years ago, I had a first year apprentice working with me on a job. He was hard working, intelligent, willing, and able to learn and work at all the facets the job had to offer. Like some of his generation, he exercised a measure of emotional intelligence; he was like a lot of apprentices his age and year in many ways. He had ONE major difference though: he owed $80,000 in college debt, which he took out to obtain a history degree.

I distinctly remember the first thought I had when he told me his story: here this young guy was, in a apprenticeship with others his age, and the distinguishing factor was an $80,000 albatross around his neck THAT HE COULDN’T CLAIM BANKRUPTCY ON.

He has since moved on to be an officer in the Marine Corps but I will NEVER forget his story; it’s the best one to exemplify my point to a T. And for every one who may say he’s a success story there are thousands who aren’t.

Job Satisfaction

The skilled trades don’t corner the market on job satisfaction, but it certainly is another reason why they have the best game in town. The vast majority I know thoroughly enjoy what they do for a living and can’t imagine doing something else.

If you’re reading my website you likely either are or know people in the skilled trades. As an example for the above I have to ask: ever met any ironworkers? They LOVE what they do. A prideful bunch they are, looking at what’s been accomplished and feeling satisfied. They feel as though work has been done when looking at their accomplishments. I use ironworkers as an example but it’s applicable to all the skilled trades, including millwrights, electricians, pipefitters, operators, and the various others not mentioned.

While researching for this post, I came across this article here where, based upon the comments, there are A LOT of people who are unsatisfied with the work they do on an everyday basis.

I agree with the author and think the post is very well written, addressing a specific point of view, but man did he get some hate mail in the comments. I included his post because working more than 40 hours is a routine thing for many in the skilled trades and most I know LOVE their craft/trade. They feel accomplished in what they do for a living and working overtime is par for the course. Feast or famine, as the saying goes.

There is job satisfaction in what those in the skilled trades do and there is a camaraderie built in that is, in my opinion, deeper than many realize or understand. Enjoying their job is one of the main reasons why working more than 40 hours is done (that, and wanting more money).

What it all means

Each of the above are enough for one to declare the skilled trades is a great place to have a career; collectively, though, they present a rock solid case for why skilled trades have the best game in town. Personally, I think having good employment and no debt along with retirement are the dynamic duo but I recognize supply and demand is fundamentally at the core. The collective sum is greater than the parts – a story all too true, all too often.

It is my assertion the skilled trades have the best game in town, for the various reasons I have outlined above. With that I emphatically say: long live the skilled trades!