The National Kitchen & Bath Association (NKBA) projects kitchen and bath remodeling and construction is headed for a record year, but a shortfall in skilled trade workers is preventing it from reaching even greater heights.

By Dianne Pogoda | 4.26.2022
 

Key Takeaways:

  • Construction-related industries currently have 380,000 jobs open;
  • These fields are expected to add nearly 168,000 jobs annually through 2030;
  • The cost in dollars and time of post-high school training in the trades is a fraction of a traditional four-year college program; 
  • Trades offers the opportunity to build a career at a decent wage with long-term job security. 

 

The kitchen and bath design industry is one of the few that has not only weathered the COVID-19 storms, but actually thrived over the past two years. There are few signs of a weakening market but some challenges loom due to labor shortage in the trade.

The NKBA, which serves the design, building and construction, manufacturing and retail sales sectors, notes that the kitchen and bath industry is closely tied to the strength of home construction, sales and remodeling. Each of these areas represent vital, well-paying career opportunities for anyone possessing  skill sets involving problem-solving, creativity, technological acumen, manual dexterity or detail orientation.

A career in trades is more than just a job. Individuals are given the opportunity to apply their strengths and do what they enjoy while at the same time knowing that using their skills has made a difference in people’s lives. This rings particularly true for kitchen and bath, as these rooms are central to the lives of virtually every homeowner family.

Drawing on its exclusive research, NKBA projects sales of kitchen and bath products and services will skyrocket to nearly $200 billion in 2022. That’s a 19 percent increase over 2021 spending. Unfortunately, there are not enough skilled tradespeople to keep pace with that strong demand.

It’s a familiar story to most people in the design, construction and remodeling industry. For starters, attrition is shrinking the workforce. For every five workers in construction-related fields who retire, only one joins the skilled-trade community.

The pandemic made the situation worse, as millions literally dropped out of the workforce for numerous reasons. Some retired, some couldn’t juggle child-care arrangements when schools went remote, some didn’t want to be exposed to potential health hazards, while others were forced to shutter their businesses because of COVID-related closures.

The so-called Great Resignation took a huge toll on employment in early 2020, and while many jobs have been recovered, recent figures released by the Bureau of Labor Statistics (BLS) show that employers are still looking to fill over 11 million jobs across all occupations. The construction industry has 380,000 open jobs, accounting for 3 percent of those vacant positions. Since the projection through 2025 is for zero population growth among Americans ages 20 to 64, those who make up the primary workforce, labor issues are going to be a long-term industry challenge.

A major factor holding our industry back through the years has been that the vast majority of U.S. high schools have pushed traditional four-year college tracks for their students. One reason is that higher percentages of graduates opting for college earn the school higher ratings. With fewer students choosing post-high school training in the trades, there is an even lower likelihood of growing the numbers of trade professionals, with repercussions translating into construction jobs taking longer to complete, or even to schedule.

To break that cycle, an awareness is needed that a four-year college track isn’t for everyone, especially when it comes to costs. Traditional college tuition and fees at a private school average around $38,000 a year, according to studentloanhero.com. The in-state rate for tuition and fees at a public institution is about $10,740, while the out-of-state cost is about $27,000. These figures exclude room and board. Student loan debt in the U.S. stands at $1.75 trillion, spread out among about 46 million borrowers. That’s about $440 billion more than the total U.S. auto loan debt.

Making matters worse, many recent college graduates are still struggling to find jobs in their field, yet those loans still have to be paid back. According to Monster.com, nearly half of 2020 graduates are still looking for work, and are now competing with 2021 grads and other entry-level workers who were laid off during the pandemic and are trying to reenter the workforce.

Conversely, at trade schools, average tuition and fees range from about $3,600 to $14,500 a year, depending on the type of institution and the program chosen.  Many programs can also be completed in two years or less. Plus, many trades offer paid apprenticeships while students are training.

NKBA’s quarterly Kitchen & Bath Market Index, a survey of industry professionals used to determine current conditions and challenges and future prospects for K&B, revealed that builders are busier than ever, with 57 percent anticipating increases in project requests. However, nearly two-thirds said backlogs stand at three months or more. A lack of subcontractor labor is a key factor. This worker crunch resulted in double-digit labor rate increases across 72 percent of building and construction firms in the fourth quarter, with the majority of firms increasing wages by double-digits to attract and maintain employees, another reason why this is a good time to be in the trades.

The BLS projects overall employment of construction laborers and helpers will see a 10-year growth of seven percent through 2030, with an average of 167,800 openings for construction laborers and helpers projected each year over the next decade.

The good news for the construction industry is that a growing majority of Gen Z believe skill-based education makes sense in today’s world, and 30 percent of 18-to-24 year-olds now believe trade school is a better option than college. The challenge is for high school guidance counselors and parents to take a second look at the opportunities within trades. With a very favorable supply and demand equation for the foreseeable future, decent wages and long-term security in construction-related fields, not to mention the potential of becoming business owners after gaining the necessary experience, students should be encouraged to consider these lucrative skilled career opportunities.


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Sources:
NKBA John Burns Kitchen & Bath Market Index, 4Q 2021
NKBA 2022 Kitchen and Bath Market Outlook
John Burns Real Estate Consulting
National Association of Realtors
Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook
Monster.com