By Bill Darcy, CEO, NKBA

Est Read: 5 Mins.

Even before the coronavirus pushed the housing market into the stratosphere – setting record new highs – it was experiencing one of the largest booms in U.S. history. From 2012 until the start of the COVID-19 pandemic, the U.S. housing market had risen more than 50 percent, continuing to drive up the values of homes across the country. 

It is not only housing that is experiencing unprecedented growth, but also the renovation and remodeling market. Due to continued high demand, there is a shift towards bigger, more expensive and professional-heavy interior remodels, with total kitchen and bath spending forecast to increase 19 percent in 2022 to $199 billion on the heels of last year’s 19 percent growth.

While industries related to housing are currently booming as a result, underlying issues will begin to impact the ability to sustain long-term growth – the most critical being the availability of labor. While labor shortages are not a new phenomenon nor is it contained strictly to the trade community, it’s clear from ongoing reports that there is a need across many sectors. 

Nearly every area of the economy is facing this challenge and competition will only increase as various industries attempt to recruit and retain the same talent. As more tradespeople retire than enter the field, industries requiring skilled labor are at a crossroads and run the risk of not being able to attract enough talent to keep up with the growing demand for services. Therefore, industries across the spectrum – from construction and remodeling to plumbing and electric – must come together to assess the problem, develop coordinated strategies, and implement grassroots efforts to slow or minimize the negative momentum and resuscitate good-paying trade careers within the U.S.

The Health of Building Industries Affects the Overall Economy

A shortage of skilled building trade professionals has a broader impact on the health of the economy and the housing market. Without skilled tradesmen, for example, new home builds and interior remodels will take longer to complete. The NKBA’s latest Kitchen and Bath Market Outlook indicates that new housing starts from a year ago are only now beginning to turn into kitchen and bath orders. Yes, this heavily contributes to continued growth within the Kitchen and Bath industry. But, the lack of labor will continue to impact capacity and keep new home construction completion times closer to 12 months, rather than the traditional 5–11 months, resulting in less availability and higher housing prices.

Additionally, the combination of low inventory and high demand –  despite a rising interest rate environment –  is catching the eye of more and more institutional investors who are buying up available housing and entering the single-family rental arena. This is also contributing to a greater supply and demand imbalance – pushing the cost of homes higher and pricing out many consumers. Unless the building industry can increase the supply of new homes to offset the imbalance, more potential homebuyers will get squeezed out of the market. To do so, industries like construction and remodeling will need to expand their skilled workforces exponentially.

Attracting Talent Requires Awareness, Opportunity, and Collaboration

Among the greatest problems in career recruitment for the building trades are a lack of awareness and education. The NKBA recently surveyed 54 high school students about careers in skilled trades and found a continued stigma associated with those occupations.  Physically intensive work, low pay, and hazardous conditions were among students’ most common concerns, illustrating misconceptions that exist when considering these well-paying jobs as a potential career. On the bright side, about half of the students surveyed expressed interest in at least one trade career, signaling a potential shift in a generation that simply lacks the knowledge and skills, as well as the awareness of opportunities to take advantage of these stable and in-demand careers.

Additionally, the prevailing wisdom passed along to students by educators and guidance counselors has been that a successful career path must include a college education. With ever-rising costs and life-altering amounts of student loans, however, more high school graduates could benefit from alternative pathways, especially when they lead to skilled, high-demand careers that pay more than just a living wage.

To achieve this shift, collaboration across industries is vital in educating students from all walks of life. To this end, the Skilled Labor Fund is a collaborative partnership between NKBA, National Association of Home Builders (NAHB), National Association of the Remodeling Industry (NARI), and the National Housing Endowment, with the sole focus of addressing the shortage of skilled labor entering the residential construction industry.

Through 2028, over 700,000 jobs are expected to open up in design and construction. As labor shortages reach a potentially critical level, the time to act is now. Through programs such as NKBA’s NextUp and the Skilled Labor Fund, the industry can capitalize on a growing movement among young people who are facing rising tuition costs and uncertain futures via the traditional college path, and encourage them to consider the skilled trades as an alternative trajectory. 

In the Programs section of NKBA.org here, we position a career in Kitchen & Bath as more than just a job…  it’s a way to make a difference in people’s lives, as these rooms form a central family role. We also offer practical information, including detailed descriptions of various industry careers, as well as a job portal, a list of NKBA-affiliated schools and first-person stories of those who successfully took the plunge. Together, by raising awareness of opportunities and benefits of careers in designing, building and remodeling, we can turn the tide. 

This article was originally published in Component Manufacturing Advertiser.