Homebuilder: Lack of skilled labor 'creating a huge problem' for housing market

Real Estate
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Scott Ashcraft | LinkedIn

There's a shortage of skilled tradesmen — electricians, plumbers and other workers who play a crucial role in home construction, according to Scott Ashcraft, president of Las Ventanas Homes in Albuquerque.

“And it's creating a huge problem, trying to get new homes built,” Ashcraft told New Mexico Sun. “The fact that we just don't have the skilled tradespeople that we need.”

It’s a national concern. 

According to the U.S. Bureau of Labor Statistics, 739,200 jobs for electricians existed in the U.S. based on 2019 projected data, with an 8% change in job outlook, a much faster turnover than the 4% average growth rate for all occupations.

Every year, around 82,200 job openings are projected electricians, which may result in more than 800,000 open jobs by 2029. In May 2019, the median annual wage for an electrician was $27.01 per hour or $56,180 per year.

“Homes and businesses continue to require wiring, and electricians will be needed to install the necessary components,” the BLS reports.

There were 490,200 plumbers in the U.S. in 2019 with a turnover of 4%, according to the BLS. By 2029, an estimated 500,000+ plumbers will be needed.

The average median pay for plumbers is $26.52 per hour or $55,160 annually.

“Employment of plumbers, pipefitters, and steamfitters is projected to grow 4% from 2019 to 2029, about as fast as the average for all occupations,” the BLS reports. “Building construction, maintenance, and repair should drive demand for these workers, and overall job opportunities are expected to be good.”

The increase in potential salaries for both careers is climbing due to the labor shortage. According to the National Electrical Contractors Association (NECA), 7,000 electricians start each year — but 10,000 retire.

Those who have worked as electricians and plumbers for decades are aging out of the jobs. Their bodies can’t take the demands of the work anymore, and many have been successful and are ready to retire.

Ashcraft said they are not being replaced at the appropriate number.

“And that's one of our biggest problems in the construction industry,” he said. “We lost a lot of skilled tradespeople in the Great Recession back in 2008 through 2010, a lot of those skilled tradespeople switched to other professions. Those holes have not been filled over the past 10 to 12 years."

He said people are available to fill these jobs, but it will require increased effort to do that.

“And I don't see how we solve that gap in the availability of labor unless we make a concerted effort in promoting trades and in promoting young people to become plumbers and electricians and HVAC technicians,” Ashcraft said. “They're good, well-paying jobs, and there's no reason why we shouldn't promote them in high schools and promote the fact that you can get the education for those in our community colleges. It's something that we need to focus on.”

He said the Las Cruces chapter of the Home Builders Association has done a good job with encouraging educational programs for the trades in high schools.

“We need to do a better job of it,” said Ashcraft, a past president of the New Mexico Home Builders Association. “In the biggest market here in Albuquerque, I think APS, Albuquerque Public Schools, has totally missed the boat in not promoting that in the public school system in Albuquerque. And then, as business owners, we need to do a better job of promoting...opportunities with trade schools. We need to push that and really let kids realize that it's a great living, you know?”

He said it’s a matter of getting that message out.

“I mean, you're going to come you're potentially in a profession that you're that make really, really great money,” Ashcraft said. “And it's not something that requires a college education. It's something that did require some on-the-job training and some trade school training.”

Electricians, plumbers, HVAC workers and skilled trade workers are “crucial” to the industry, he said, and there are wonderful opportunities.

“They pay well and they're not something that's easy to automate,” Ashcraft said. “I mean, I don't see a way to automate having a plumber come in and do certain plumbing skills in a house. So, these are professions that I foresee over the next 10 to 20 years that as we have a decrease in the number of people going into these professions, the opportunity for really great pay is only increasing.

“And as we have lower supply, obviously that demand is still there,” he said. “And so, the opportunity for these people going into these professions to make really great money is absolutely there.”

Ashcraft said another option is worth exploring.

“Maybe the answer is we've got an immigration problem and we've got people coming across the border that they need good jobs,” he said. “And this may be an opportunity for them as well.”