Why I LOVE Home Service and Skilled Trades

What is the least sexy job you can think of? A few that come to mind are electricians, plumbers, flooring installers, and general contracting/construction companies. What do all of these industries have in common? They’re facing a MASSIVE labor shortage.

For every 1 new entrant into the skilled trades, there are 7 retiring. This poses a major threat to our infrastructure and the quality of life we’ve come to know and love. Your home, your office, your favorite restaurant—all function due to well-qualified service professionals and tradespeople.

What happens when there are 200 broken water heaters that need fixing, and only 2 plumbers are available within a 100-mile radius? First, you’re scheduled out according to when you contacted them. Next, they send you a quote for $350/hr and you’re taken aback, feeling it’s “highway robbery!” This situation motivates everything in my life: to emphasize the INHERENT VALUE in providing skilled services.

If you’ve taken a macroeconomics class, you’re familiar with the inverse relationship between the supply and demand curve, right? Now, consider this: plumbers make up just 0.00087064% of the US population, while Board Certified Surgeons make up 0.00011166%. That’s a ratio of only 8.33 plumbers for every Board Certified Surgeon in our country.

So, why don’t we value them more? Must these ratios hit 1:1 before society sees these home service providers as truly valuable? Either way, when the water heater breaks… there isn’t anyone else to call 🤷‍♂️

Now, let’s compare the barrier of entry for these industries:

1.) Plumbers = 2 years of apprenticeship, certification training, and working under another master plumber for 2+ years based on state requirements. It’s a 5-year journey to become a master plumber, earning upwards of $129,000 annually!

2.) Board Certified Surgeon: High cost, intense competition, and a long process. It involves years of training, residencies, and board certification for a potential $350-$500k a year, with sacrifices in personal life.

So why do I love home service businesses and the skilled trades? Because in the unassuming foundation of these industries lies an incredible opportunity. The shortage of skilled professionals, the ever-growing demand, and the inherent value in providing essential services—these elements make these industries not only stable but incredibly lucrative.

The balance between low barriers to entry and the promise of financial stability resonates deeply. It’s an alluring model, where one’s efforts, expertise, and vision can translate into significant returns. The appeal might not immediately captivate with its surface glamour, but peel back the layers, and you’ll find an industry that not only sustains but thrives on skill, dedication, and strategic thinking.

This is why I am passionate about shedding light on the true worth of these professions. It’s about recognizing the unsung heroes who keep our lives running smoothly. It’s about revealing the hidden opportunities in industries often overlooked for their lack of ‘sexiness.’

Let’s uncover the allure in the unassuming, the value in the overlooked, and the potential in the underestimated. There’s more than meets the eye in these seemingly unglamorous industries. The deeper you look, the sexier it all becomes. 🥵

Thanks for continuing the Journey towards simple, not sexy, business decisions!

Happy Sunday,

Nick

—

💡 Caveat: That $129,000 mentioned above is if you are an employee who is a master plumber. If you are a subcontractor, you can easily double or 2.5 this revenue number annually if you’re busy. Which makes plumbing a specifically enticing industry to buy businesses in! If you can pay a plumber $250k a year and keep him busy, that generally results in around 120-150k a year for the plumbing business owner. If you systematize your operations, this becomes a pretty amazing model 💡