Why Should I Be Concerned

A US Newswire stated on January 11, 2007, “According to the U.S. Bureau of Labor Statistics (BLS), America will face a shortage of electricians in the near future. Projections show that by the year 2014, the national need for electrical workers will rise to more than 734,000 – 78,000 more than currently employed in the field.”

The U.S. GDP compilation estimates that in 2005 the U.S. economy was worth nearly $13 trillion. The construction industry represents 11% of that entire figure. Of that 11%, the electrical industry comprises 1%, or $110 billion. There are 750,000 electrical workers in the United States, and as further detailed in this report, there currently exists a significant shortage that could compound to a crisis based on lack of skilled workers. The ramifications of this shortage in relation to the GDP data suggests that if we cannot meet this demand for more skilled electricians, the U.S. economy could be seriously impacted – for example, new business construction brought literally to a halt, installations and maintenance of high-tech systems severely cut back if not impossible, the transportation industry seriously curtailed, communications disabled due to lack of power and installations, the micro-electronics industry dead in the water with no skilled workers to install, power-up or maintain, and the home-building industry nearly shut down. The electrical industry not only impacts the success and job completion of the 11% representing the construction industry, but enables the remaining 89% of the economy to exist AND grow. IMAGINE YOUR WORLD WITHOUT ELECTRICITY!

The newswire announcement, one of many in the press in recent years, is just one more indicator of a looming ‘perfect storm’ threatening the construction industry and, ultimately, the U.S. economy.

According to a study released on January 16, 2007, the construction industry will need to add 185,000 to 250,000 new workers annually for the next 10 years to offset the wave of workers expected to retire. This study, conducted for Sheet Metal Works and the Sheet Metal and Air Conditioning Contractors Association, supports similar data from the BLS. The Monthly Labor Review’s study of annual employment projects employment opportunities in construction will increase by 15% through 2012. The greatest shortfall in skilled labor in the construction industry will be among electricians where employment opportunities will grow by 23.4% through 2012.

Similar sentiments are echoed in industry publications. The January 31, 2007 edition of CEPro stated, “Electrical workers are aging as is the general population. The task ahead is not only to recruit and train more electricians to meet the needs of a growing industry, but to make provisions to replace current electricians who will retire.”

BLS forecasts indicate that demand for electricians will continue to accelerate. By 2012 demand for electricians will begin to create 28,000 vacancies annually. There is no time to waste says freelance writer and industry expert, Joe Salimando. “The electrical contracting industry needs to add an additional 18,500 apprentices each year to the numbers it is currently training. Unfortunately, we’re not even close to doing so. That means there will be a shortage in the future – certainly by 2012-2014.”

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