It’s no secret the HVAC industry is looking at a graying workforce with few stepping up to replace technicians as waves of retirements continue to ripple across the country.
The numbers are stark: the industry is short around 80,000, with some estimates up to 100,000, and the only real solution is to get the next generation into the fold.
When it comes to Gen Z, there are some cultural differences between them and the generation currently occupying management positions, but there’s a lot of promise and untapped potential, as Gen Z is in search of many of the things offered by the HVAC industry.
The only question now is how to reach them.
CEO
Simpro
Who is Gen Z?
Born between 1997 and 2012, Gen Z are also commonly referred to as “Zoomers,” and are either just entering the workforce or, in some cases, have left college with a degree and are disillusioned by the current job market and are considering a career jump.
Regardless of what stage of their career they’re currently in, Gen Z promises to be a unique addition to the labor market.
“Gen Z is distinct in so many ways — they are digital natives, armed with transformative technology and the ability to leverage it to digitally transform businesses,” said Gary Specter, CEO of Simpro. “Unlike previous generations, Gen Z has grown up immersed in tech, ultimately offering new perspective and creating valuable opportunity for themselves and their employers.”
With that skill set, Gen Z is expected to shake up whatever industry they enter, including the trades.
“We’re witnessing Gen Z stepping into industries traditionally dominated by seasoned professionals with years, sometimes decades of experience, and unlocking new potential through technology,” Specter said.
Brenda Harmon, owner of Tri-Tech Heating Inc. in Vancouver, WA., and her husband started their business in 1993. With three Gen Z sons working toward taking over the company soon, she has a good perspective on the subject, to say the least.
“Gen Z has a desire to learn the HVAC trade, even though most Gen Zers have had zero prior hands-on experience,” Harmon said. “For our company, our Gen Z boys bring the desire to change with the times and challenge us to be better. Plus, with the expanding digital age and technology advancements, they have played a huge role in helping Tri-Tech Heating excel in the industry.”
“They are looking for a career straight out of high school without going to a college and incurring debt, while still being able to make a good living.”
Disillusioned with (College) Debt
Here is where the HVAC industry’s secret weapon lies — technical and vocational schools are substantially less expensive than four-year colleges and, upon graduation, there are almost certainly several companies fighting to hire. The biggest problem is that this is still somehow a secret, meaning the HVAC industry has a big branding problem.
Kevin O’Conner, host of the popular home improvement show “This Old House,” said during a recent summit hosted by Jobber that one of the best ways to connect the next generation to the HVAC trades is through apprenticeships.
In today’s environment, going into the trades is considered an “unconventional choice,” but it’s a career that can result in valuable skills and a promising future, points that need to be conveyed to Gen Z.
While O’Connor said he himself has an undergrad degree and sees the value in that type of education, he thinks society did two things wrong when promoting higher education.
“I think we overreached, in terms of putting (a four-year college education) out there as the singular, best alternative for young people and, in the process, I think we also stigmatize the alternative a little bit, saying that one was better than the other, and the consequence of that, meaning that the folks who did not go on to university, who did not go into higher education, for some reason made a wrong choice — I think that set us back considerably,” O’Connor said. “I think we're still living with the ramifications of that stigma — that folks think that it's not great to go into the trades.”
But O’Connor thinks that pendulum is starting to swing back and the trades are now having a moment. O’Connor noted the numbers are showing about a 10% decrease in college enrollment, while apprenticeships have seen a 15% jump.
“That's a great statistic — that's moving in the right direction,” O’Connor said. “The sad part though, is that it's apprenticeships are growing from a very, very low base.”
As the cost of college has regularly out-paced inflation, the solution to its affordability has been student debt, which has caused a crisis.
The cost of that “traditional” education at a four-year university is also becoming increasingly unsustainable, with many graduating with tens of thousands in student debt.
“The average cost of tuition at any four-year college is $19,800 per year, totaling $79,200 plus the cost of books, which averages to $1,200 annually, whereas the average cost of a vocational school ranges from about $3,860 to $15,550 per year,” states the “Blue-Collar Report,” conducted by Jobber. “Among those who took out a student loan, the average debt at graduation is $25,900 that takes an average repayment time of more than 21 years, whereas graduates of vocational school accumulate $10,000 in debt but earn between $17-26/hour as an apprentice depending on their location and chosen field, so they can pay off their debt at a faster rate.”
O’Connor said that traditionally, there has been a wage premium associated with higher education, but statistics are showing that has diminished over the last decade, making the trades a more attractive option for those who don’t want to be saddled with debt.
“I think that young people are starting to make new choices — I think they're starting to say ‘Hey, I don't necessarily want those expenses, I don't want that debt. I want a little bit more security that comes with being able to work with your hands,’” O’Connor said. “The demand is there and I am hopeful that that pendulum will swing back, that the reputation of the trades will continue to improve.”
What They Want from a Career
Surveys again and again are showing Gen Z wants to see they are adding value to what they are doing while also doing something meaningful.
“Nowadays, discussions surrounding sustainability are on the rise, and a majority of Gen Z are the ones leading the conversation,” Specter said. “Additionally, they continue to show interest in upskilling and professional development, without falling into severe debt from a college education. We’re witnessing a shift in values as Gen Z seeks opportunities to drive impact for themselves and society.”
Gen Z also wants to see mindfulness incorporated when designing and implementing eco-friendly systems, Specter added, and like to see renewable energy and reduced carbon emission initiatives.
“Others may view it as an opportunity to pursue roles that involve community outreach, such as providing heating and cooling solutions to underserved communities or participating in environmental initiatives,” Specter said.
As they strive to push the world toward a more sustainable future, their tech-savviness will be a driving force, as they recognize its power more intimately than the generations before them.
“I admire how proactive Gen Z is when it comes to integrating technology into their workflows,” Specter said. “Their drive for digital transformation aligns with our approach at Simpro. We want to utilize these technologies to streamline processes and ensure that our software aligns seamlessly with the needs of our customers and the evolving requirements that this generation is leading.”
Lighting the Beacon
Gen Z doesn’t want debt, they want to start a business, and they want job security — three things the trades have in spades, but it’s getting that message out that’s the challenge, and O’Connor thinks it goes back to, in part, attitudes held by parents.
“It seems like it's the parents that are holding a lot of the kids back because more of the young people seem to have a higher appreciation for the trades or willingness to go into the trades, sort of level of skepticism about too much college debt, and yet disproportionately it seemed like the parents were the ones saying, ‘No, I think it's important that you go on to college,’ and that might just be a vestige of their upbringing, or that massive push towards college that happened over three or four decades,” O’Connor said.
O’Connor also touched on the ability to work closely with technology as probably the strongest recruitment tool the trades have when it comes to recruiting, so it needs to be pushed to the forefront.
“Having a company that embraces technology, good recruitment tool for getting people to come into those jobs,” O’Connor said. “I mean, if you grew up using this from when you were 5 years old, and then you join a company that doesn't use this or embrace all the things that come with it, you know, you're going to be looking at a different company.”
Specter also sees offering continuous learning and career development opportunities as important tools, and that’s something that every company needs to be offering.
“Displaying that your company values growth is the biggest factor that can help Gen Z differentiate your company from the next during their job search,” Specter said. “Gen Z seeks meaning and purpose in their work. I think it is super beneficial for companies to highlight the brand’s mission statements, values, and commitment to social responsibility.”
From what Harmon has seen, she agrees.
“Most of our current Gen Z employees are looking for a place to call home and be accepted,” Harmon said. “They are willing to be trained — offering training while gaining a career is huge.”