New Study Reveals Scope of America’s Skilled Labor Shortage

LIXIL, a manufacturer of water and housing products, published a commissioned study, “Blocked Pipes: The Economic Consequences of Skilled Worker Shortages,” which examines the widespread economic impacts of the growing skilled labor shortage across the nation. While the report primarily focuses on the plumbing industry, the impacts are felt in industries beyond, remodeling included.

The study was conducted by economic research firm John Dunham & Associates in collaboration with economist Michael Flaherty and reveals that the dwindling supply of skilled labor professionals across nearly all sectors has already hindered economic growth in the U.S.

The causes for this are complex and compounding. Across most trades, women make up a small portion of the industry professionals despite representing 47% of the overall U.S. workforce. Younger generations have also been swayed away from careers in the trades due to declining vocational training in high school and pressures to pursue a traditional college education. These factors, combined with a growing number of tradespeople from the baby boomer generation seeking retirement, have resulted in an ever-thinning workforce.

The impact of this shortage comes in the form of delays and rising project costs, and can be felt in the construction, plumbing, healthcare, manufacturing, aerospace, and automotive industries. A tightened labor supply results in an increase of service costs, risk of inefficiencies, quality issues, and missed deadlines, all of which could work in tandem to slow innovation and constrain economic output.

On the plus side, information within the study reinforces that populating the trades would have a significantly positive economic impact. For the plumbing industry, it was found that the addition of 16,400 workers could generate 37,624 jobs across sectors and contribute nearly $3 billion to the U.S. economy.  Even scaling it back to modest increases could save $1.27 billion with only minor wage decreases per worker.

Coordinated action among businesses, educators, and policymakers is going to be required to adequately address this shortage. Industries will need to work together to reshape perceptions, reinvest in vocational education, and rebuild a strong and inclusive workforce.