It’s no secret that the skilled trades are experiencing a staffing crisis. The nationwide shortage is currently over 1 million skilled laborers, and that number is going to double to 2 million by 2025 (if not sooner). Unfortunately, the pandemic in 2020 only accelerated that timeline.
While there are a wide variety of things contributing to the skilled labor shortage, we chose 4 of the biggest challenges to discuss in this episode, along with some solutions. 👍🏼
Main Takeaways ✅ Increased demand and dwindling supply are worsening the skilled labor shortage. ✅ Many companies are “bringing a sword to a gunfight”—using outdated hiring methods and not seeing results. ✅ Rapidly evolving skill levels and expertise make it even harder to find workers. ✅ Skilled workers are frustrated with the stagnation or lagging rise in their wages. ✅ There’s hope: while the next 3-5 years will be a challenge, we see opportunity.
Timecodes ⏰ 00:00-05:20 | Overview of the skilled trade shortage—it’s not going anywhere in 2021 ⏰ 05:21-06:39 | Falling productivity increases demand for experienced workers ⏰ 06:40-11:15 | Onshoring and a backlog of work puts more pressure on US manufacturing facilities ⏰ 11:16-13:19 | Retiring baby boomers are leaving a vacuum of experience ⏰ 13:20-17:05 | Young people not pursuing the trades ⏰ 17:06-19:55 | Bringing a sword to a gunfight: companies using old processes to approach trade gap ⏰ 19:56-23:06 | How Skillwork’s unique model can be a solution ⏰ 23:07-28:14 | Rapidly evolving technology will change skillsets for workers ⏰ 28:15-32:53 | Stagnation of “Blue Collar Wages” in a growing economy ⏰ 32:54-36:00 | Final thoughts
Quotes 💬 “Putting more production workers in a facility doesn’t make you more efficient, it makes you more expensive.” (08:21-08:28) 💬 “Not only is there opportunity, but there is honor and value in going into the trades.” (15:08-15:13) 💬 “We need to keep talking about it, encouraging people, supporting, and showing the opportunity. It’s on all of us to make sure we honor the skilled trades and celebrate that as a path.” (16:24-16:55) 💬 “I’ve literally looked at some owners of companies, and the look on their faces is hopeless. They look at us and think we’re kidding when we say we can help them find the talent.” (17:36-18:00) 💬 “Not only are companies doing the same thing, they continue to look in the same pool knowing there’s nothing there…Our challenge to you would be to think outside that box.” (19:19-19:54) 💬 “It’s amazing how when we find success doing something, we want to go back to that. But it’s the smart individual that says, ‘maybe we should try something different’.” (21:49-22:00) 💬 “Once the technology was there, it was an asset. It was inevitable that eventually those businesses and industries were going to shift.” (25:57-26:06) 💬 “It’s going to exacerbate the skilled labor shortage, but we see an opportunity in this to attract a new generation.” (27:41-27:49) 💬 “Traditionally, there’s a lag in wages when we have an economic boom. Blue collar workers are usually the last to benefit. But we are starting to see that trend change.” (28:34-28:49) 💬 “Good people always pay for themselves.” (30:56-31:00) 💬 “If you’re focusing on pinching pennies, you’re losing dollars out the other end. Invest in the front end and give skilled workers the wage they deserve for the value they’re bringing your company.” (31:18-32:29)
