Career advice is not exempt from the swath of misleading, anecdotal information that is all over Reddit. We all see this every time there's a post about switching careers, going to college vs not going to college, or what careers are the most lucrative. A large influx of commenters, most of whom are not actually employed in a skilled trade, come forward to preach about how lucrative the trades can be. Key word: can.
Let's start with education and necessary training for the four big trades:
- HVAC/R: Post-secondary award or associate's degree and/or a 3-5 year long apprenticeship. Additional certifications earned throughout career.
- Plumber/Pipefitter: Optional post-secondary classes. 4-5 year long apprenticeship.
- Electrician: Optional technical school. 4-5 year long apprenticeship.
- Carpenter: Optional technical school. 4-5 year long apprenticeship.
On average, it takes 4-5 years to become a journeyman in a trade according to the BLS. Journeyman status is where a tradesman can expect to earn just their median wage. Also, there's only so much more you can earn per hour without being promoted to a supervisory role. There's a limited amount of these roles, and they are highly contested.
Next let's look at median wages for these trades (acquired from bls.gov):
- HVAC/R: $22.89/hour or $47,610 annually
- Plumber/Pipefitter: $25.92/hour or $53,910 annually
- Electrician: $26.53/hour or $55,190 annually
- Carpenter: $22.40/hour or $46,590 annually
The number that our Redditors like to claim for these tradesmen is $100k/year. Let's do some simple math using the electrician's wage of $26.53/hour:
26.53x + 0.5(26.53)(x-40)=100,000/52
26.53x + 13.265(x-40)=1923.077
26.53x + 13.265x-530.6=1923.077
26.53x + 13.265x=2453.677
39.795x=2453.677
x=61.658 hours worked per week to make $100,000 in a year.
There's two problems with this number. The first being the obvious lack of work-life balance (which many would-be tradesmen foolishly ignore when faced with six figures). The second being the fact that you are not guaranteed 62 hours of work every week. Consistently working this much is not impossible or even improbable, but the construction industry is not always a steady, constant stream of work for everyone all the time. It is characteristically volatile with constant ups and downs.
I would also like to point out that the wages from the BLS are an average from residential, commercial, and industrial workers. Most of the work is in residential, which pays lower than the other two sectors.
Yes, there are positions in the HVAC/R, plumbing, and electrical trades, that can pay $40+ per hour. In the right location. With the right certifications. With the right experience. In the right sector of the industry. These positions are usually very highly skilled and are not the norm. They also are usually more dangerous for HVAC/R techs and electricians.
Additionally, I would like to add that many tradesman do not receive any form of benefits. This mostly applies to non-union, residential workers. Some companies don't even pay 1.5x for OT, which is illegal but fitting for the sketchy nature of the industry. Again, these things don't apply to every worker, but they are a real factor to consider.
Finally, to address the "a smart tradesmen will start a business" argument, let's look up the most common failed small-businesses. Here are some frequent candidates:
- Home-building. A common carpentry business path.
- HVAC/R
- Plumbing
- Restaurants
- Local Trucking
Beyond that, construction businesses have the lowest small-business survival rate over a five year startup period. Only 35% of construction businesses started will last to their fifth year.
I know part of my point here is to discount anecdotal evidence, but I want to give some perspective by showing the opposing side of these anecdotes. I'm a self-employed finish carpenter who is currently in school for engineering. I've made an effort to ask buddies/coworkers/bosses of mine who were self-employed before and during the 2008 recession what it was like for them. Out of the 7 people I've asked, only 1 of them still had jobs coming his way. And they were few and far between. Many have also said that pay, both as an employee and subcontractor, has remained unchanged or even decreased since the recession.
My former boss has been capping his top, non-foreman guys at $20/hour for the past 10 years. Just to keep up with inflation, that rate would need to be $24.38/hour today. That's an effective $4.38/hour pay-cut from then to now. Also, $20 is a fairly normal rate for finish carpenters here in North Carolina. This is a stark contrast to this whopping $100,000 per year we're all expecting.
My point here isn't to say it's impossible to make bank or start a successful business as a tradesman. My point is that it is nowhere near as easy as Reddit, and people in general, make it seem. The construction industry is filled to the brim with shady, cutthroat people. There's an enormous amount of competition for work. Contrary to what you might think, there is not a shortage of labor. There is a shortage of good, reliable, skilled labor. Many of these reliable, skilled workers choose to leave the trades to pursue a less physically demanding and more lucrative career such as construction management or engineering.
Also, yes there are exceptions. Lineman and elevator mechanics are generally very well compensated. Here's the thing: very, very few people have the stones or aptitude to be a lineman. And it is very difficult to get your foot in the door as an elevator mechanic. These trades are outliers.
Another thing I'd like to squash while we're here is this nonsense that college is a waste of time. The only way this is true is if you allow it to be a waste of time. Don't major in something impractical if you're hoping to get a job with your degree. Average earnings for someone with a bachelor's degree is almost $20,000 higher per year than someone with no college experience. Not to mention the added job security, work-life balance, vastly superior work environments, comprehensive benefits, etc.
TLDR:
Take Reddit's advice with a grain of salt.
https://www.bls.gov/careeroutlook/2018/data-on-display/education-pays.htm
https://www.bls.gov/bls/infohome.htm
https://smallbusiness.chron.com/types-small-businesses-likely-fail-63862.html
https://www.surepayroll.com/resources/blog/5-businesses-with-a-high-failure-rate
https://www.fundera.com/blog/what-percentage-of-small-businesses-fail
Submitted November 02, 2019 at 08:23PM by RumUnicorn https://ift.tt/2N9aL2W
