the importance of attracting skilled tradespeople

The Importance of Attracting Skilled Tradespeople

Moderator: Moderator:

Suresh Parmachand, Sr. Marketing Mgr., Canada - Uponor

Panelists:Panelists:

Mark Eatherton, Executive Director – Radiant Professional Alliance (RPA), Contractor Magazine

Adam Freill, Editor - Mechanical Business Magazine

Ron Jones, President – Green Builder Media

Steve Swanson, Trainer – Uponor

Mark Vreugdenhil, Publisher – HVAC & Plumbing Magazine

The CastThe Cast

The Generational IdentityThe Generational Identity

Current Market (Post War to Boomer)Current Market (Post War to Boomer) Future Market (Gen X, Y and Millennial)Future Market (Gen X, Y and Millennial)

Workaholic

Loyal to company

Rank and file

Risk Averse

GAPGAP

Work/LifeBalance

Loyal to ideals

Capitalize on Opportunities

Risk

1940’s1940’s 1960’s1960’s 1980’s1980’s 2000’s2000’s

1950’s 1970’s 1990’s

Today

A Generational SummaryA Generational Summary

War Child

Post War

Baby Boom ME Generation Millennial

Generation X Generation Y

$4 600

$10 950

$13 600

$23 400

$14 100

$6 450

$4 130

$2 400

$89 330

$22 100

$113 150

$35 900

$297 000

$46 326 Poverty

$23k

A Generational SummaryA Generational Summary

Source: AC Neilsen

Greatest Generation (1901-1924)Silent Generation (1925-1945)Baby Boomers (1946-1964)Generation X (1965-1976)

Millennials/Gen Y (1977-1995)--Younger Millennials (18-27)--Older Millennials (28-36)Generation Z (1995-Present)

What Are You Seeing As The Hurdles For Engaging New Generations?

56 industry tradesperson average age

Source: US Census

Population DistributionPopulation Distribution

Source: emsi/career builder

53%45+

With An Aging Workforce How Do You Feel the Industry Is Perceiving the Issue Of Industry Attraction?

Industry 2020Industry 2020

Prospective Students Have No Interest

54%

37%

25%

Young people believe there is better future working in computers than skilled trades.

Young people believe that skilled trades is old fashioned.

Young people believe working in an office is more respected than working with your hands.

11%Students not interested because they don’t think the trades are cool.

Industry 2020Industry 2020

• Average age of skilled trades : 61

• Age impacts the ability to capitalize on market opportunities

• Labour rate on skilled trades increases by ~30%

• Unskilled workers enter market to fill market needs

• Problems are created within marketplace due to poor installation

• Skilled workers are called into fix problems

• Problem perpetuates

Skilled Trades Become Firefighters

What Are The Pitfalls Of This Scenario Playing Out?

Source: Stats Canada, US Census

Canadian Population Breakdown US Population Breakdown

What Age Group Do You Feel Can Drive Change? Why?

Market DiversityMarket Diversity

Market DiversityMarket Diversity

Market DiversityMarket Diversity

Half of children under 5 are ethnic.

By 2019 half of children under 18 will be ethnic.

Source: NBC Nesws, US Census,

“More so than ever, we need to recognize the importance of young minorities for the growth and vitality of our labour force and economy.“

-William H Fey, Demographer - Bookings Institute

Notable Quotes:Notable Quotes:

How Are Changes In Workforce Diversity Going to Impact Industry?

New Leadership ParadigmNew Leadership Paradigm

Traditional Traditional New AgeNew Age

• Hierarchical• Goal-oriented• Manage resources • Knowledge• Extroversion• Experience• Egotism • Empowering• Intelligence • Success• Influence• Effectiveness (myopic) • Drives Consistency

Leadership is influence, nothing more, nothing less.

-John Maxwell

Leadership is the process of influencing others to work towards a mutually desired vision.

-David Burkus

• Holistic• People-oriented• Liberate resources• Situational impact • Self-motivated • Intellectual Capital Management• Self confident• Without Boundaries• Selfless• Trust• Effectiveness (peripheral) • Collaborator• Enabler

Source: Actionpointe, Journal of Applied Psychology

Meet business objectives Creating an environment where individuals will be allowed to foster positive change

“Management causes 85% of problems in an organization.”

-Dr. Demmings

The cost of losing an employee in the first year of hire is projected at 3 times their annual salary.

-Wynhurst Group

How Is This New Leadership Paradigm Going To Impact Industry?

Media Drives Perception

1 in 3 Parents would encourage children to work in trade

High Schools have become incubators for College and University

3 Generations of Change…

Source: Association od University and Colleges of Canada (AUCC)

* Employment changes in thousands

6 Million 6 Million Boomers Boomers

In 2 DecadesIn 2 Decades

The Hierarchy of Trades – Perception Drives Decisions

Stories Are Being Told

How Can We Improve Perception of the Trade?

49% 51%

Median Age

41

Gender Breakdown

source: Stats Canada, US Census 2010

source: Stats Canada

Are We Doing Enough To Attract Women To Our Industry?

Special Education Funding

Sources: 2006 U.S. Budget, Historical Tables.This graph shows that federal grants from special education rose from under $250 million in 1977 to $5 billion in 2000 nearly $12 billion in 2005.

20 % reduction 20 % reduction in technical in technical

eduction eduction

Decline (millions)

How Does Public Policy Need To Change Our Education System?

51% 49%

Smartphone Audience

Social Landscape

72% 1919%%1919%%22%%22%%

3535%%3535%%4343%%4343%%

1313%%1313%%1313%%1313%% 2121%%2121%%5252%%5252%%

Social @ PlaySocial @ Play

99%%99%%44%%44%% 1111%%1111%%

7676%%7676%%

Social @ WorkSocial @ Work

22%%22%%

The Power Of One

Social media Social media has changed the way we consume and share information.

Technology has provided a conduit for

individuals to shareindividuals to share their stories, opinions, thoughts, content,

images, videos, etc. to the to the massesmasses, with few restrictions.

Cognitive Learning

Gamification Of Industry Learning Gamification Of Industry Learning Source: www.interplayenergy.com/intercaz

How Have Social Trends Changed in Business? How Can We Leverage These Trends To Build Awareness?

Brain Drain - Today

18-25 26-37 38-49 50-60 61-70 71+

16 561 000Age Distribution3% 18% 24% 45% 11%

Brain Drain – 10 years

18-25 26-37 38-49 50-60 61-70 71+

14 739 292Age Distribution2% 2% 18% 23% 44% 11%

Brain Drain – 15 years

18-25 26-37 38-49 50-60 61-70 71+

11 261 480

2% 2% 10% 21% 33% 32%

Age Distribution

How Can We Improve Knowledge Transfer?

Government Programs

Source: www.actionplan.gc.ca Source: www.skillsusa.org

Association Programs

Insert HRAI program

Source: www.careertap.ca Source: www.hrai.ca

Source: www.careersinhvacr.org

Association Programs

Governments & Associations are Trying, But Can They Do It Alone? How Can We Help?

It Takes A Village To Raise A Child

It Takes A Community To Develop A Tradesperson

The Community

How Do You Feel The Community Can Work Together?

We will need to rethink where our leaders are from…

• Advanced Technology Services Inc., a Peoria, Ill., factory-maintenance company that employs 2,300 workers

• In the classroom – hands on secondary school training for high-school graduates at a cost of $1,500 per student

• War veterans transition program

What Are Others Doing?

ATS

Source: www.advancedtech.com

What Are Others Doing?

Government Of CanadaThe Government of Canada launched the Federal Skilled Trades Program in January 2013 to facilitate the immigration of skilled tradespeople who meet Canada’s current and evolving economic needs. Skilled tradespeople are assessed on relevant criteria, such as language ability, practical training and work experience rather than formal academic education.

Source: www.cic.gc.ca

What Are Others Doing?

mikeroweWORKS Profoundly Disconnected:

A trillion dollars in student loans. Record high unemployment.

Three million good jobs that no one seems to want. The goal of Profoundly Disconnected is to challenge the absurd belief that a four-year degree is the only path to success.

The Skills Gap is here, and if we don’t close it, it’ll swallow us all. Which is a long way of saying, we could use your help…

Source: www.profoundlydisconnected.com

What Are Others Doing?

Collaborative EffortCanadian Apprenticeship Forum-Forum www.caf-fca.org.

About Skills/Compétences Canadawww.skillscanada.ca.

About the CampaignIn 2006, the two organizations partnered to develop and launch the Skilled Trades: A Career you can Build On campaign. The campaign reached across Canada through various resources, marketing materials, a new website and even some theatre ads.

Source: www.careersincanada.ca

"What the industry needs is to be much more aggressive in marketing and creating visibility.“

-Jim Ryan, Chief Executive Grainger

Notable Quotes:Notable Quotes:

"We've made work the enemy," -Mike Rowe, TV Personality

• Leverage government apprenticeship Leverage government apprenticeship programsprograms

• Work with Associations at the local Work with Associations at the local chapter level to improve circumstancechapter level to improve circumstance

• Elevate the trade – tell your storiesElevate the trade – tell your stories

What Can you Do?What Can you Do?

suresh.parmachand@uponor.com

@mktngjnky

Linkedin.com/marketingjunky

marketingjunky.wordpress.com

Suresh ParmachandSuresh Parmachand

The Importance of Attracting The Importance of Attracting Skilled TradespeopleSkilled Tradespeople