Tuesday, February 28, 2023

U.S. Economy - America Is Trying to Electrify

As demand for renewable energy increases and people try to transition to more sustainable energy sources, electricians, an essential part of the transition process, are in short supply. The new climate law is expected to increase demand for car chargers and heat pumps, putting several hundred billion dollars worth of incentives into the economy designed to accelerate the energy transition. 

The lack of available electricians is most severe in the Northeast and California, where demand for green energy products is highest, and many electricians have retired during the pandemic. As a result, the average annual electrician salary rose from $50,000 to $60,000, with some electricians raising prices and wages due to labor shortages. Industry analysts say it will be challenging to meet that demand. The current total of over 700,000 electricians is expected to grow only 7% over the next decade, slightly faster than the nationwide average of 5%. 

To help address the shortage of workers, the government is trying to introduce tax credits and incentives for apprentices. Also, product makers are trying to make simpler electrical products that won't require an electrician to install, reducing the demand for electricians. Current owners of Electrical Services groups emphasize the need to train apprentices since their work requires training and specific knowledge. 


Source: https://www.wsj.com/articles/america-is-trying-to-electrify-there-arent-enough-electricians-4260d05b?mod=economy_lead_story 


3 comments:

  1. With so many younger people being interested in the whole electric car idea, I wonder if we will see an increase in amount of electric cars bought, and this problem sorting itself out?

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  2. The government seems to already be attempting to lure people to this field but I don't know if tax credits for apprentices will be enough to meet the massive increase in demand. It may be helpful to also try and reach more people and the high school and early graduate level specifically and introduce them to a program where they can learn these high demand trades.

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  3. Maybe one way to meet the demand for electricians is to introduce policies to attract workers from abroad for example reduced taxes or subsidies on their housing etc. The government could also try making easier visa laws for more in demand professions so its easier for people to apply and get approved.

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