Building long-term wealth is a dream of most people and it is achievable through different means. One of the ways to achieve this feat is by working in skilled trades. Skilled trades refer to jobs that encompass technical and practical knowledge, as well as manual skills. Examples include electricians, plumbers, welders, carpenters, and mechanics. All these professions require a certain level of expertise, which often results from technical courses or on-the-job training.
The need for skilled labor has been on the ascendancy in recent times, and this is evident in the number of jobs available in the trades industry. For instance, in the United States, the Bureau of Labor Statistics (BLS) projected that occupations in the skilled trades sector would grow by 4 percent between 2019 and 2029. This figure is higher than the average growth rate projected for all occupations (3.7 percent) during the same period.
If you’re considering a career in the trades, there are several reasons why this could be a good decision for building long-term wealth.
1. Emerging Shortage of Skilled Labor
One of the most significant reasons why you may want to consider working in skilled trades is the emerging shortage of skilled labor. As the current generation of skilled workers begins to retire, there is a lack of young, skilled talent to take up their positions. According to a survey conducted by the National Electrical Contractors Association (NECA), there will be a shortage of about 85,000 electricians in the U.S. by 2024. This shortage could lead to higher wages and an increase in job opportunities for those with the required skills.
2. Potential for High Earnings
Skilled trades careers offer the potential for high earnings. While the phrase ‘high earnings’ is relative, it is essential to note that the salary range for different professions varies. However, the yearly median salary of some skilled trade workers, according to the BLS, is well above the average rate for all workers. For instance, the median annual wage for electricians in 2020 was $56,180, while HVAC (Heating, Ventilation, and Air Conditioning) technicians earned a median salary of $50,590 in the same year.
Furthermore, skilled trades workers who own their own businesses have the opportunity to earn even more. This is because they can set their own rates and charge enough to cover their business expenses and make a profit. According to a survey conducted by the National Association of Home Builders (NAHB), the median annual income for small business owners in the trades industry was $55,000.
3. Job Security
Another critical factor that makes skilled trades an attractive career choice for building long-term wealth is job security. The demand for skilled professionals is always high, and this trend is expected to continue. For instance, the BLS predicted that the employment of plumbers, pipefitters, and steamfitters would grow by 4 percent between 2019 and 2029. The BLS also stated that the need for electricians would be on the rise as businesses and homes continue to be constructed. Therefore, if you have the necessary skills, you can expect to have secure employment for the long term.
4. Opportunities for Advancement
Skilled trades offer a breadth of career opportunities for advancement. Some tradespeople might start out in entry-level jobs such as apprenticeships, but with hard work, dedication, and skill-building, they can rise through the ranks to become supervisors, project managers, or even business owners. There is also the opportunity to gain additional certifications and pursue specialized training, putting you in a better position for advancement and higher pay.
5. The Opportunity for Entrepreneurship
Another advantage of working in skilled trades, as we have mentioned earlier, is the potential for entrepreneurship. Tradespeople with an entrepreneurial spirit can start their own businesses and have the freedom to work on their terms, set their rates, and grow their business over time. Running a trade-based business is a great way to build long-term wealth, create job opportunities for other skilled workers, and make a difference in the local community.
Bottom Line
Building long-term wealth requires hard work, dedication, and smart career choices. Skilled trades offer a breadth of opportunities for career advancement, high earning potential, job security, and the chance to start your own business. As the demand for skilled labor continues to increase, there has never been a better time to get started on this path than now. Take advantage of technical courses or apprenticeships, and begin your journey towards building long-term wealth through a skilled trades career.
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> Inaccuracies with Bureau of Labor Statistics (BLS) data: Many of our blog posts will quote BLS data. SkilledTradeRescue.com has been able to identify that data quoted specifically for Skilled Trades can be as much as 50% LOW in many USA labor markets. For more information on these inaccuracies please visit the STR national labor survey page at the link below. On this page there is a video containing the latest information at the top of the page as well as other information. If you currently work in skilled trades, PLEASE consider participating in our national labor survey.
