Trade School Vs College Education: Exploring Career Paths

Introduction

This research paper will cover the topic of trade school vs college. A large percentage of people currently working in the skilled trades are at retirement age and this is going to leave a massive gap in the workforce. This gap will increase the salaries of these positions in the coming years. People currently enrolled in apprenticeship programs and technical degrees can soon make as much as someone with a traditional 4-year degree. As companies continue to automate and as technology advances, there will be a need for skilled workers to repair and maintain this new, and evolving, highly technical equipment. Throughout the next 5 to 10 years the demand for skilled trade positions is projected to steadily increase. Skilled trade positions can be an extremely lucrative career path for anyone willing to work with their hands.

Trade School: The Growing Demand

Skilled trades have been around since the beginning of civilization. This knowledge has been passed down from generation to generation. A skilled trade worker is someone whose work requires a certain amount of specialized training and unique skill. Very little schooling is required to be accepted into an apprentice program with a company, or union. Many skilled trades workers generally start in apprenticeship programs, where they develop their skills under Journeymen that also may have attended apprenticeships or technical/trade schools.

Manufacturing companies are actively trying find qualified people that have knowledge of their aging equipment. These companies may have either proprietary equipment or equipment that is over 40 years old and unique to their operation. In many of these cases they do not want to upgrade or get rid of these assets, because this equipment has been paid off for years but still functions at a high level. However, a considerable amount of this equipment is very mechanical and the training that is being done in most technological colleges are not teaching the students how to work on, repair, or upgrade this type of equipment. This leaves many companies with a skill gap will continue to be a problem for employers going forward. Many have or need to put a greater emphasis on their internal training and development programs as a stop gap in the short term.

The idea is that going to college and graduating with a degree will earn you more money. More and more parents are urging their children in that direction without any consideration of the earning potential and job opportunities that coincide with skill trades positions. There is almost an unspoken rule that getting your bachelor’s degree is the first step in getting chunk of the American Dream. Students blindly make their way to college without any idea of a career in mind and start going through the paces. We all understand that parents want to see their children succeed, but they may be hindering them from seeking out great earning potentials in skill trade positions.

Comparing Costs of College and Trade School

The cost of a 4-year college is more than double that of a trade school. The traditional college route for a bachelor’s degree will average roughly between $100,000 and & 130,000. This leaves students that go to college still paying off their debits well into their 30’s. The cost of a trade school is about $20,000 for the degree and leaves the student in a much better spot. A more disturbing fact is that according to the institute of Educational Statistics 40% of students enrolled in a 4-year degree will not reach graduation. For the 60% that do graduate, 64% of them take longer than the four years to finish. This is far lower for a 2-year associate degree at only 5% graduating within the 2-year timeframe. Part of the problem being credited to lack of guidance along with too many choices to pick from. It is estimated that for every additional year it takes an associate degree student to graduate they will spend on average $15,933 in costs. This goes up to $22,826 for a 4-year bachelor student. According to U.S. News this totals $70,000 a year average in both lost wages and educational expenses. This is a reality that one must consider when making their decision to enter directly into the workforce or maintain the track to attain a 4-year college degree.

There is an alternative to college that is being driven by the immediate shortage of skilled trade workers across the board, and the demand of these positions will continue to grow. The main driving factor this is the fact that over 70 percent of the current workforce is approaching retirement age making this a very lucrative career choice for any individuals. In the construction industry alone, there are over 243,000 jobs nationwide going unfulfilled according to the Bureau of Labor and Statistics. So, with the shortage we already have in the work force, and the amount of upcoming retires workers are finding themselves getting higher wages than ever before. You look at the carpenter’s trade, this past year home remodeling spending was at an all-time high and is expected to climb throughout this year. On the manufacturing side, industries are growing and changing and facing the reality that they are losing a large portion of their technicians as well due to retirement. For everyone one person coming into the trades, there are four that are retiring. They need a skilled workforce to operate, troubleshoot, and repair their types of machinery. Many of these companies are bringing in newer, more advanced pieces of equipment to streamline and automate their processes. In turn making the companies more efficient and dynamic. This is a great time for individuals getting out of tech schools to get involved with these companies to fill the voids in their rosters.

Advantages of College Education

Many companies are resorting to co-op and internal training programs to get interested candidates trained to meet the demands of the position. Companies like S.C. Johnson have taken a proactive approach to this dilemma by partnering with technical colleges in the area to ensure the training programs currently in place will meet the needs for upcoming positions. They have gone a step further to re-establish its partnership with local high schools to bring back the co-op programs for mechanical and electrical students. Students chosen for this program will be paid while training with skilled technicians to build their proficiency and skills within the trade. This is a great opportunity for students to evaluate this as a career choice to pursue and allows the company to observe the capabilities of the individuals. This really is a win-win for both the student in the program and the organization. They start their training in operations as operators, learning multiple lines running various pieces of equipment. This is essential in teaching them the functionality of the equipment, and how each piece is supposed to operate. These learnings are then carried over to assist in troubleshooting and repairing the equipment as technicians.

After high school they will have the opportunity to stay on as a college co-op for another two years as they’re enrolled in a technical college to get their degree. At companies like S.C. Johnsons, this degree is paid for fully by the company. At this point it is more of an apprenticeship program for them. They work full time positions on first shift but are excused and paid during the hours of classroom studies. They rotate through each department and are paired with a senior maintenance technician for a set length of time. During this time, they practice their teachings, maintain their training documentation and sign-offs, and log their hours towards their journeyman’s licenses. After they complete the programs, they will have the opportunity to gain fulltime employment from the company. All the time participating in each of the high-school and college co-op program is considered as part of their seniority. This is just one example of the step’s companies are taking to deal with the gap left by an aging workforce.

There is another subject someone should look at when thinking about the trade’s vs 4-year degrees. Most of the jobs that you would get with a 4-year degree would be salary positions. This is the opposite of skill trade positions, where most of them are hourly. We need to compare the hourly paying jobs vs salaried or exempt positions in both the benefits and complications. With hourly positions you get paid for the time that you spend at work, and in many cases have the opportunity of earning overtime and double time. The amount of wages earned from overtime can add up to a sizable portion of your annual income. I have had several conversations with multiple managers, and one of their biggest complaints is the number of hours spent dealing with work related issues. They spend on average between 50 and 55 hours a week preforming their job duties whether at work or at home. They are always on call, and some of them will have 40 hours worked by start of day Thursday. They are required to work across multiple shifts to support trainings and other company initiatives. When issues have arisen, they come in to deal with the situation until it’s resolved. In one case it was stated that they came in at 9:00 at night and worked until 11:00 the following day. These are often things people are not prepared for when entering positions such as these. Now we look at what the average salary is for a mid-level manager, which is about $95 thousand a year. If we round the number of hours they work a week to 53 and multiply it by 52 weeks, we get a total of 2,756 hours a year worked. This brings a manager pay to only 34.47 an hour. Looking at it in this manor, it is not a lot for being on call all the time with the requirement to work off shift. The starting wages for most of the electromechanical, pipefitters, and instrumentation technicians are over that amount at an average of $36.50 an hour. When one looks at the salaries in this way which is the better choice.

Numerous people in management positions have gotten burnt out by their companies expecting them to work longer hour, some longer then what’s listed here. It seems like some companies treat people in salaried positions as being tied to the company at any time with no off switch. All their hours may add up to a small to moderate bonus at the end of the year if their department meets their objectives. Many times, they eventually either self-destruct or leave for better opportunities. Finding companies that adhere to a better work life balance. However, generally if a tradesman works on the weekend he will receive increased wage incentives on a day by day basis. When his shift is over he is not required to bring home his work, nor work longer hours than his specified shift. He gets to leave work at work and go home. So, lets recap on both. If someone was giving the opportunity to take either position presented would they rather flex there hours, working any shift or long hours, or would they rather work a set schedule and get paid more for hours worked outside of their normal shift? Pay is just one of the advantages of working an hourly schedule other than the salary schedule you would most likely receive with a 4-year degree.

Advantages of Trade School

I should state the I’m not opposed to anyone pursuing a 4-degree, but I am saying that many people overlook the options of trade schools as an option for there future. The earning advantage for achieving your degree will allow you to make more money in the long run according to various studies. This is extremely important to most students as they choose careers that will give them either higher earnings or better marketability. Many people are going back to college later in life, because they see the rewards of furthering their education. These people see the advantages of higher pay within the organizations that they work that accompany a degree. Besides just higher pay, it can lead to a change in a career path, advancement in your current one, and possibly early retirement. Couple that with the understanding that gaining any knowledge on a subject or subjects is never a bad thing. It keeps your mind sharp as you get older and opens your world to new things that you might not have ever thought about. This has happened to me during my time at college, and in subjects that I thought I wouldn’t be interested in. Completing this venture has shown me that I love to learn and is something that I will continue to do thought out my life and career.

The lifelong earnings between college and trade positions are changing fast. I think about the electrical field, and with 2 to 5 years’ experience one could easily attain a position making $75-$80 thousand a year. I know plenty of people in skilled trade positions that are making over $100 thousand a year working a little bit of overtime. I heard from numerous managers that state how many of the people in their department make more than them. I understand this is not always the trend, but my company pays to the higher side of the pay scale to not only get qualified people but to keep them. This makes me reflect on myself and my endeavors throughout my career. I’ve stated earlier about the number of hours I’ve seen various managers work, and their time spent supporting multiple shifts. Many of them do not seem to be content with this type of work, and the turnover rate is pretty high even with the higher pay ranges. This is partially due to the political side of management that makes me leery to move into it. We have an extremely high turnover rate in middle to front line managers that range about every 3 to 5 years. It has been my observation that most of the time when a new plant manager comes in they push out the older managers to make way for colleagues from their old company. They seem to work in groups and move in and out of the company in the same fashion. I understand according to many studies you have greater job security with a degree, but once you move into a salary position from the floor you are easily replaceable.

Skilled labor individuals do not have that same problem. If you do your job, you do not have to worry about having a job. This is not the case with management. You can have the best numbers within the KPI’s set forth by your leaders, but if they do not like you for some reason they will or could still push you out. I do not like the fact that they have judged individuals not by what they do and know, but by how well liked they are. This perpetuates people sucking up to existing and new management, and their time would be better spent doing their actual job. I do understand that if the company closed having your degree will allow you to gain employment much faster than an operations worker, but I’m I would not say that about the trades at this time. The demand for them in the job market is too high.

Conclusion

I focused this paper primary on management for jobs with a 4-year degree, and skilled laborers within the residential and industrial realm. As I am in college now pursing my degree, I think a 4-year degree is valuable in many ways, but I will encourage my kids and anyone else to think about opportunities within the trades for a fun and fulling career.  

Works Cited

1. Arnold, Lauren. 'The Benefits of Trade School.' University of Advancing Technology, 2021, www.uat.edu/news-and-events/advantages-of-trade-schools.
2. DesMarias, Gregg. 'The Case for Trade School Over College.' U.S. News, 10 Aug. 2018, www.usnews.com/education/blogs/college-admissions-playbook/articles/2018-08-10/the-case-for-trade-school-over-college.
3. Electricians: Bright Outlook for the Skilled Trade. United Association of Union Plumbers, Fitters, Welders, & Service Techs, 2019, www.ua.org/news/ua-blog/electricians-bright-outlook-skilled-trade.
4. Mitch, Tim. 'Trade School vs. College: Which Is Right for You?' Investopedia, 22 May 2020, www.investopedia.com/trade-school-vs-college-5023612.