Funding for infrastructure is not always a straight answer for cities, municipalities, HOAs, and other entities. Access to funding is usually through complex grants or low-interest loans and comes from several different sources.
The logistics are complicated; even the word infrastructure is a compact term for an extensive list of structures. These structures are the pulse of a country’s overall wellness and prosperity. Infrastructure includes:
- Roads
- Bridges
- Railroads
- Water & Wastewater Management
- Telecommunications
- Aviation
- Energy & Power
- Parks & Recreation
As the pulse of the nation, infrastructure projects are increasingly in demand as the population swells. Investors (private and public) and legislators identify infrastructure as a top priority and actively seek maintenance and construction innovations to stay globally competitive.
The Infrastructure and Jobs Act breathes new life into funding for infrastructure projects, including maintenance, that are desperately needed across the country. Funds are already starting to dwindle as infrastructure branches compete for priority and receiving entities strategize funding, scrutinize budgets, and dispatch workforce. The workforce adds further complexity and dimension to an already crowded paradigm.
Workforce Shortage Expected To Last Till 2030
America is familiar with shortages and inflated prices on the available goods and services. But is there also a skilled labor shortage? Unfortunately, yes. If the disruption in supply chains didn’t convince you, the skilled labor industry suffers 55% shortages in plumbers, electricians, and construction companies that cannot fill positions across the nation.
This blue-collar shortage negatively impacts essential infrastructure’s already challenging cost and workforce matrix. Forbes highlighted 77% of manufacturers not being able to entice a full roster despite generous unemployment incentives expiring. The Conference Board supported that finding with 85% of blue-collar industries unable to find skilled labor to fill positions. A disincentivized workforce is one of many problems feeding the shortage.
As baby boomers leave the workforce, there is seldom skilled labor to take up the position. There is a double-edged sword for younger generations. Although the baby boomers are moving out of one workspace, they are staying in other vocations. Younger generations are staying in school and living at home longer. Entry-level positions require an unrealistic amount of experience coupled with graduate expectations of entering the workforce as top-level executives. The Age Wave is real and impactful, as this short youtube video predicted.
The demand for blue-collar workers is at an all-time high, especially in infrastructure, and the supply continues to shrink. According to The Conference Board, this status quo is expected to continue until roughly 2030. The rise in material and labor costs are being felt by several industries that rely on blue-collar workers, who are the backbone of this nation. If infrastructure is the pulse, blue-collar workers are the heartbeat. Statista shows the growing unemployment rate from 1990 to 2021.
Fortunately, investing in infrastructure and apprenticeship programs is aligning to make a significant difference in the future unemployment outlook on youth.
Investing in Infrastructure
The Infrastructure Talent Pipeline Challenge has rallied over 350 organizations to the cause, which the Biden-Harris Administration presented to all entities and investors participating in:
- Broadband
- Construction; and
- Electrification
The bi-partisan supported challenge amplifies the importance that blue-collar workers play in developing and maintaining infrastructure. Training programs and incentivized lucrative positions are attracting a diverse workforce across the nation, which include paid apprenticeships and support benefits such as dependent care and transportation assistance. Community and technical colleges are supporting the effort by offering infrastructure training.
The federal government is enticing participation with funding and federal investments through the Advancing Equitable Workforce Development for Infrastructure Jobs guide and the Bipartisan Infrastrutu Law, including $80 million through the Department of Labor to support training and another $125 billion in competitive grants. These are only a few incentives for participating entities to explore. A total of $2 trillion($1.5 devoted to infrastructure) are being pumped into the system. The forecast is a lucrative blue-collar world. According to the Center for Education and the workforce:
As the demand for infrastructure workers grows, sign-on bonuses frequently accompany lucrative salaries. So it is an exciting time for blue-collar workers and the infrastructure industry.
Standard Pipe Services is proud to contribute to the explosive growth of the infrastructure pipeline. If you want to collaborate on a project or want to help contribute, contact us or follow us on LinkedIn and FaceBook.
