Labor Shortage

Tiger, Have you looked into the technical colleges and seen if their enrollment is up? I know that finding good entry level hands in the oil field is hit or miss. We've had some duds lately.

Hmm, seems like you will need to grow your own skilled workforce, rather than looking for "finished" employees. Has the business ever thought about a training and mentorship program? Pair older skilled workers with the younger ones, esp those who learn best from example/doing (rather than classroom). Or develop a partnership with your closest vo-tech/community college to create paid internships for their students---you'd get discount workers, and be able to pick and choose from the ones you see through the internship program. Every business faces the need for skilled workers---how you respond to the challenges will determine your success or failure.

You say you can't find the guys to "do what you do"....but if the services are needed, someone will provide them. Is there strong demand for your services? That should be the guiding factor...not just having a labor shortage.

You don't say what the alternative is: what is your own skill set/potential for employment if the family business is no longer there? Will the family business be closed, or is there a potential to sell to someone else? Who actually owns it? You, dad, or a larger group of family members?

Frankly, your post sounds like your mind is made up and you're simply looking for reasons to justify getting out of the family business. If the work & challenges don't excite you, if you aren't thinking creatively about how to solve your labor problems, if you are already thinking about how the "old days" were better, perhaps you are not well suited to bring this business into the future. No shame in that--we aren't all entrepreneurs. Be honest with yourself & don't cling to the family business if it makes you miserable.

there is a severe shortage of skilled trades where I am. Businesses aren't doing a good job responding to it though. Generally when there is a shortage, wages shoot up but that isn't happening, as businesses can't pass price increases along to their customers.

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Our welders and manual machinists are in $30+ per hour range so not paying enough couldn't be farther from the truth.

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That is broken thinking, regardless if you believe it is enough the market decides that, and it seems to be speaking to you.

Welders are in pretty high demand with all the pipeline work going on and you just have to find what it is that will lure them.

There's a lot of folks who got burned in the last o&g downturn who are willing to trade that money for stability

Was reading an article a few weeks ago about the decline in the number of skilled laborers because so many companies have abandoned their apprenticeship programs while also skimping on on-the-job training.

But I do also think there's been a decline in them because our society as a whole has placed more emphasis on kids going to college. Then the ones not cut out for college miss the boat on lucrative skilled labor careers.

Agreed^^^

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But I do also think there's been a decline in them because our society as a whole has placed more emphasis on kids going to college. Then the ones not cut out for college miss the boat on lucrative skilled labor careers.

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No doubt. We need some degrees that combine Business with trades, outside of simply like construction like Building science. That way you have some college educated guys going to the trade schools.

The way the trade schools are now are basically the bottom of the barrel for guys that don't have any other choices. Which is ridiculous. I'm not advertising skipping college to be a welder, I'm advertising skipping college to own a welding company.

So if you do decide to exit, can you sell the company or will it just fold?

Since college I have always been a mentor at local schools I was stationed by in the military. I was fortunate enough to be stationed in Florida relatively close to home, the panhandle. A kid that I was mentoring there was an awesome kid in a really shitty situation. Mom and dad both in and out of jail, he had been to over 8 different schools before HS, but generally a good kid who wanted to do right but had never been shown how. His grades were terrible and he was in an alternative school, so college was not happening soon for him. So as he was approaching the end of his junior year, I introduced him to a childhood friend who(like you) was taking over his family HVAC business. He gave him a job that summer as a helper in his shop and the kid impressed him so he committed to helping him get through the school and training, financially and mentoring him. This was all about 6 years ago and the “kid” is now making an honest living and extremely loyal to my buddy for investing in him. They both thank me for introducing them, one has a great employee and the other has a great career.

The point is you will probably have to invest your time and treasure to find what you are looking for in today’s labor market. I think it will be worth it. My mom and her brothers sold our family business about 10 years ago and they won’t say it, but they regret it.

Good luck.