LACCD In The News

America’s demand for skilled electricians is entering a boom cycle

July 27, 2024

By CNBC

America’s demand for skilled electricians is entering a boom cycle

The demand for electricity to power homes, factories, office buildings, data centers, EVs, utilities and other parts of daily life keeps growing, while the supply of electricians needed to connect and control electricity keeps going down.

That labor market conundrum threatens to stall the transition to renewable energy, which is crucial for meeting climate goals and reducing carbon emissions, as well as other booms where power needs are intense, including cryptocurrencies and artificial intelligence. It’s a golden opportunity for tens of thousands of workers to enter a stable profession, with many open positions in the years ahead, and offering solid pay.

“The electrification industry is alive and well, and will be in high demand for a decade-plus,” said David Long, CEO of the National Electrical Contractors Association, which represents nearly 4,000 companies that employ members of the International Brotherhood of Electrical Workers union. “There’s not an aspect of American life that will not be impacted by the work of electricians.”

According to the Bureau of Labor Statistics, employment of electricians is projected to grow 6% annually until 2032 — twice the rate of all other occupations — with about 73,500 job openings each year. There were approximately 762,600 licensed electricians in the U.S. as of 2022, the BLS reported, earning a median salary of $61,590 per year, though the highest 10% made more than $104,000.

Every year, nearly 10,000 electricians either retire or change careers, but only about 7,000 new ones enter the field. While the shortfall finds homeowners lamenting about how long it takes to find an electrician for wiring projects, entire industries — including construction, manufacturing, renewable energy, technology and utilities — are confronting project delays and increased labor costs.

The BLS doesn’t differentiate between unionized and independent electricians, but experts say the split is about equal. Yet that divide can be skewed, depending on geography and job description. Some states have a higher prevalence of unionized labor, particularly in large cities and on public works projects, while others may see more non-union electricians hired, especially in right-to-work states.

IBEW electricians average $82,664 in annual salary; their non-union counterparts earn an average of $56,180. The employment platform Indeed lists nine different job categories for electricians, with varying annual salaries: $54,000 for a residential electrician, $67,460 for an industrial electrician, $71,800 for a commercial inside wire-person and $82,500 for a master electrician. That doesn’t include benefits, such as health care insurance and paid time off.

Because electricians are essential to so many sectors, solving the shortage dilemma is being addressed on multiple fronts. The two major organizations representing union and non-union electricians — the IBEW and the Independent Electrical Contractors — are casting wider recruitment nets to attract a more diverse workforce, particularly women and minorities, to their apprenticeship programs. They’re also reskilling greater numbers of existing electricians who want to work in emerging sectors, such as wind and solar energy and artificial intelligence and cryptocurrency data centers.

“This is a tremendous opportunity to get the word out about the union,” said Adrian Sauceda, the IBEW’s director of inside construction organizing. “We’ve always actively recruited in high schools, and now we’re even in middle schools. Every chance we have, we’re passing out flyers in neighborhoods and at job sites.” The IBEW has stretched its marketing reach by placing ads on social media platforms, “especially in areas where we have a shortage of electricians,” Sauceda said, adding that the union is also targeting military veterans transitioning to civilian life.

“We have seen a tremendous influx of people entering our industry,” said Thayer Long, executive director of the IEC. “Our apprenticeship program is going to jump by 15% from last year.”

A shift in messaging about trades, college degree

High school students have long been prime candidates for apprenticeships, a prerequisite for becoming a journeyman electrician. Historically the skilled trades — electricians, plumbers, welders, HVAC installers, construction workers — have been deemed by students, parents and educators as a lesser alternative to college, but that attitude is changing, said IEC’s Thayer Long.

“We’re benefitting from a generation that’s looking past high school and is not seeing a career going through the traditional four-year college pathway. There’s been a shift in the mindset in the country regarding the trades,” he said. “It’s not a last resort.”

Contributing to that shift are high school guidance counselors like Steve Schneider, who has advised students for 28 years, currently at Sheboygan South High School in Wisconsin. “When I started, in 1996, college for all was an easy approach,” he said. “The skilled trades were there, but just weren’t promoted.”

About 12 years ago, Sheboygan South began changing its counseling programming to accentuate the trades, Schneider said. He and his colleagues approached local manufacturers, including Kohler, American Orthodontics and Rockline Industries, that hire skilled tradespeople. In conjunction with Inspire Wisconsin, a statewide career-development group, they established a nine-week, paid coop program. It offers high school students hands-on training alongside workers from local companies, introducing them to skilled trades and other occupations, which can lead to an apprenticeship after graduation. “It’s like job shadowing on steroids,” Schneider said.

What it takes to become an electrician

Becoming a union or non-union journeyman electrician typically requires a high school diploma or GED and a four-year apprenticeship, which comprises 8,000 hours of paid, on-the-job training under a licensed electrician, as well as some classroom instruction. Except for books and supplies, both the IBEW and IEC fund the training, leaving apprentices nearly debt-free upon completion.

The IBEW, in coordination with NECA, jointly run the Electrical Training Alliance, a nationwide apprenticeship and training program. “We have almost 300 training centers across America, with about 55,000 apprentices currently enrolled,” said NECA’s David Long. “Our national curriculum is approved by the Department of Labor, so essentially someone who graduates can work in any one of the 50 states.”

The IEC’s 70 training centers across the country also offer tuition-free apprenticeships and a similar curriculum. “Our training is very technical and hands-on, but we’re doing more hybrid learning environments,” said Thayer Long, including online classes and the use of augmented- and virtual-reality tools. “That’s what a new generation of electricians is expecting. They’re digital natives, so we want to respond on their terms.”

Universities, community colleges and technical schools are also involved in filling the electrician pipeline. Some offer pre-apprenticeship programs, short-term training that leads to a full-fledged apprenticeship. Others tie in associates and bachelor degrees, which can be required for advanced technician and managerial jobs.

Los Angeles Trade-Technical College offers several electrician classroom-instruction programs. “We do all the training, but not the work experience,” said Bill Elarton-Selig, chair of the school’s Construction, Maintenance and Utilities pathway. “We connect our students and graduates to apprenticeships or to employers who hire them.” Among LATTC’s 12,000 students, 4,600 are currently enrolled in electrician training, he said, adding that tuition is around $1,000 a year.

Syracuse University’s College of Professional Studies has developed a Future-Ready Workforce Innovation Consortium, which combines academic, skills training and partnership programs in collaboration with the region’s business community, trade unions, secondary schools, community colleges and other four-year institutions.

The pathway for electricians, designed for apprentices seeking academic degrees and current workers looking to upskill or reskill for new jobs, includes the IBEW’s Local 43 chapter. The union is anticipating a hiring boom related to Micron Technology’s 20-year, $100 billion project to build four semiconductor factories in nearby Clay, New York, announced in 2022. That’s spurred interest in the profession, said Alan Marzullo, business manager and financial secretary for Local 43, “and we’re going to scale up to meet that demand.”

Micron has stated that construction will begin sometime next year, with the first two fabrication plants expected to come on line by 2029. “That job alone will require 2,500 electricians,” Marzullo said.

“The electrification of America is presenting a generational career opportunity,” said NECA’s Long. He said to upgrade the nation’s electrical grid, power data centers, build EV chargers, tighten cybersecurity and expand internet broadband service, “We know that we have to increase energy-producing capacity. And all those things have to be delivered by the electrical industry.”

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