The growth of the artificial intelligence (AI) sector could intensify an already significant challenge for home builders, as data centers and other infrastructure projects create additional demand for electricians, HVAC technicians, and other skilled trades.
Data from the recently formed Alliance for America’s Skilled Trades finds that the U.S. will need to fill an estimated 1.7 million skilled trades job openings annually through 2035. However, current training programs produce just 55 workers for every 100 needed. The challenge facing the skilled trades is heightened because of an aging workforce, with a quarter of trades workers over the age of 55.
The State of America’s Skilled Trades: A National Report examines 124 skilled trades occupations, identifying where workers are needed the most and whether training in these in-need areas is keeping pace. The report, updated annually, is designed to help employers, educators, and policymakers target training and investment.
For the housing industry, skilled labor shortages are not a new development. Builders have faced years of labor constraints, an aging workforce, and recruiting challenges alongside a persistent shortage of homes. Now, the growth of AI infrastructure, advanced manufacturing, and energy projects could further strain the pool of workers available for residential construction.
The report highlights growing demand for many of the same trades needed to build homes. Employment of electricians, HVAC technicians, and industrial machinery mechanics is projected to grow at twice, three, and five times the rate of all occupations, respectively. Across the 124 occupations included in the study, 86 are expected to add jobs or hold steady.
The report is one of the first projects from the Alliance for America’s Skilled Trades, founded in the summer by BlackRock, Ford, Google, and Carhartt. In addition to founding members, the Alliance has added 14 new corporate members, including DEWALT and Milwaukee Tool as well as Verizon and AT&T.
The shortage also reflects challenges in attracting prospective workers to the trades and moving them successfully from training into careers.
Primary research from the Ad Council Research Institute suggests that while there are ample opportunities in the skilled trades, students are often not aware of these potential career paths. The Institute’s research finds that only one in four high school guidance counselors recommends a trade apprenticeship, just over half recommend trade school, and nearly nine in 10 recommend a four-year degree program at a college or university. Further, only half of those who enter skilled trades training programs finish.
According to the report, demand outpaces supply for skilled trades workers in nine states: Arizona, Colorado, Delaware, Florida, Georgia, New Jersey, North Carolina, South Carolina, and Texas. In Arizona, semiconductor investment is driving demand for electricians and HVAC technicians while housing construction and Hurricane Helene recovery efforts are supporting outsized demand for carpenters in North Carolina.
For all construction and extraction occupations, 39.1% of entrants into the sector are still working in the same set of skilled trades after five years, according to the data in the report. Twenty-two percent of the construction and extraction workforce is over the age of 55 while just 10% is under the age of 25. The states experiencing the largest shortage pressure for construction and extraction workers are Washington, D.C., Rhode Island, Connecticut, New Hampshire, Vermont, Colorado, Illinois, Tennessee, Arizona, and New Jersey, according to the report.
In addition to the report, the Alliance launched America’s Skilled Trades Dashboard, an interactive tool covering the 124 featured occupations with more than 5,000 state- and trade-specific profiles.
To help bridge the skilled labor shortage and meet the growing demand for workers, the report suggests prioritizing shared training resources, access to mentorship, childcare, and transportation to trainees, and greater visibility into career paths for prospective workers. High-quality programs that connect trainees to jobs and provide support services have completion rates of approximately 90%, according to the report.
“With millions of skilled trades roles unfilled across the country, creating simple, accessible pathways into these careers is more important than ever,” Lina Hubbard, CEO of Carhartt said. “But the report makes clear that awareness alone is not enough: fewer than one in three people who start a trade program or apprenticeship ultimately go on to work in the field. To close that gap, we need to do more to help people stay on track, complete their training, and connect to meaningful careers.”
