Every construction executive knows how the lack of skilled workers in the industry can impact business, yet what definitive action has been taken to overcome the ongoing problem? The shortage of qualified workers is slowing down job execution, jeopardizing quality and pushing up wage costs. The answer to how we can fill the skills gap is trade schools and apprenticeships. Here are the top ways trade schools and apprenticeships can impact the skills gap in construction.
1. On-The-Job Learning
The United States can learn from Europe’s success. Apprenticeship programs are widespread and trade schools or vocational training are seen as a great career path for teens and young adults. Apprenticeship programs are unlike internships, as the employee-student is paid for learning on the job while also attending college.
Most major, and even small, contractors in the U.K. run apprenticeship programs in which the new hire learns on the job while also attending school part time or in the evening. Trades in every aspect of construction, from bricklaying and carpentry to plumbing, electrics and civil engineering, are offered.
2. Higher ROI
Employers can get a high return on investment. Expect an ROI up to 25 percent on what employers pay apprentices and the revenue profited from projects. Additionally, companies face reduced recruiting costs, a more predictable and reliable supply of skilled labor, improved employee retention and better productivity. Furthermore, the average age of a person in the building trades today is 50, so it’s easy to see why young blood is needed for the future.
In Switzerland, 70 percent of teens are apprentices, giving the country a steady stream of trained, experienced workers. (Bear in mind, similar to the U.K., Switzerland offers apprenticeships in professional services industries such as accounting, health care, aerospace and manufacturing).
3. Increased Career Opportunities
Parents typically push their children toward a four-year college, where the dropout rate is more than 40 percent and job opportunities can be limited. In comparison, trade schools, which take less time to complete and are more affordable, see dropout rates of as little as 1 percent. It’s important to encourage a shift in focus for student learning to trade schools for those who don’t want to pursue a four-year college degree.
4. Less Student Loan Debt
Skilled workers will make a more relevant impact to the economy and fill their wallets. There is currently $1.4 trillion in student loans and, according to the Department of Labor, seven million unfilled jobs.
For example, a former plumbing apprentice opted for an apprenticeship program because he couldn’t afford a four-year university tuition. He enjoyed learning on the job while going to trade school and still works for the same home builder. He recently bought a house while many of his friends who went to university can’t afford to move out of their parents’ home.
5. Growing Support from private and government entities
Many trade colleges are starting to offer credits for employer-funded apprenticeships, which is a step in the right direction. Here is Forbes’ latest ranking of the top 25 two-year trade schools and the different incentives they offer.
Additionally, the construction industry has support from government educational funds, such as the recently signed bi-partisan Strengthening Career and Technical Education for the 21st Century Act (H.R. 2353). It’s intended to support more apprenticeship programs and better promote trade schools.
As construction continues to boom across the United States, investment in skilled trade workers is critical to successful, cost-effective and safe building. Not only do school counselors need to encourage vocational training, but contractors also need to proactively offer apprenticeship programs and continuous training. The figures speak for themselves in terms of benefit and reward. Now is the time to make it happen.
