National Organization Sheds Light on Wages, Incentives in Trades

Craft Classification Percent Increase Power Line Worker.....................................................24.6% Plumber............................................................................23.0% Rigger.................................................................................19.4% Industrial Coatings Applicator..............................17.8% Tower Crane Operator...............................................17.3% Electronic Systems Technician............................14.4% Signal Person..................................................................12.3% Instrumentation Technician..................................11.8% Welder: Structural/Fabricator...............................11.2% Scaffold Builder.............................................................11.0% Mobile Crane Operator............................................10.8% Industrial Carpenter...................................................10.7% Industrial Maintenance Mechanic......................10.5%

by Tim Taylor

TThe National Center for Construction Education and Research recently completed its 2022 construction skilled craft salary survey to provide a snapshot of the current wage market for skilled craft labor. Completed surveys were received from 139 construction organizations that represent more than 330,000 employees from the construction industry across the

U.S. NCCER has collected the construction wage data every two years since 2012 with the exception of 2020, which was skipped due to the challenges construction organizations faced in response to COVID-19.

Average annual salaries for individual crafts represented in the survey, shown in the adjacent graphic, does not include overtime, per diem, or any other incentives offered, and is based on the assumption of a standard 40-hour work week.

Results show craft classifications that experienced a 10% or greater non-inflation adjusted increase in wages between the 2018 and 2022 for which 10 or more responses to the survey were received, experienced non-inflation adjusted wage increases.

There are several factors that contribute to the wage growth within the construction trades.

Broader economic challenges such as supply chain challenges, rising energy prices, rising material prices, and historically high rates of inflation are certainly creating a unique economic environment.

These economic conditions exacerbate the ongoing construction industry problem of shortage in the quantity and quality of skilled craft professionals across the country. Construction Industry Resources’

Construction Labor Market Analyzer currently projects a 2.6-million person shortage of skilled craft labor over the next five years.

These factors and others have contributed to rising wages and increased “job hopping” across the broader economy. Combined with the “Great Resignation” as people left the workforce over the last two years, many industries are facing worker shortages. Wage growth in the broader economy can make it more difficult to attract workers to the construction and manufacturing industries.

However, companies should resist the temptation of viewing wages as the sole means of attracting and retaining skilled labor. Several studies over the »

years have found that wage alone is not the highest motivator for young people in construction and other industries. Research performed by the National Center for Construction Education and Research in conjunction with the Construction Industry Institute, Ironworkers/Impact, and the Construction Users Roundtable found that while wage is important, young people were more motivated by careers that provided a sense of accomplishment in their work and the ability to give back to their communities. This is something the construction industry has been doing for thousands of years!

Additional research found that a significant segment of skilled craft professionals were more interested in jobs that allowed them to stay in one geographic region rather that higher wages. One factor driving this trend was the rise of dual income households among skilled craft professionals. In 1970, approximately 30% of construction craft households were dual income. By 2010, more than 80% of construction craft households were dual income. This growth in dual income households makes it more challenging for craft workers to relocate to different geographic regions to “follow the jobs” as was done in the past.

Over the years the staff, industry partners, and instructors associated with NCCER craft certification programs have interacted with thousands of students in training programs across the country. The feedback provided by these students aligns with the previously mentioned research efforts. And the students indicate that they value companies that value them by caring about them individually and investing in their future to grow their skills and career. Responding to this type of motivation can allow organizations within the manufactured housing industry to compete for skilled workers in areas other than just paying a higher wage. MHV

Timothy R.B. Taylor, P.E., Ph.D., is the director of research for the National Center for Construction Education and Research (NCCER) where he is designing and implementing a research program portfolio to provide actionable solutions to the skilled craft shortage and improve the lives of construction craft professionals.

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