Starting Your Business, Construction Business Tips

Private Equity Could Unlock Skilled Trades in Utah

November 5, 2024

Private Equity Could Unlock the Skilled Trades Industry in Utah (HVAC, Plumbing, Electrical)

Over recent years, private equity firms have increasingly set their sights on the skilled trades, investing heavily in HVAC, plumbing, and electrical work, among others. This influx of capital has created unprecedented opportunities for aspiring contractors, which could soon start pouring into growing markets like Utah. This article aims to shed light on the impact of private equity on the skilled trades and how you can seize these opportunities to build a successful contracting business.

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Utah’s booming construction industry

Utah’s construction sector is currently experiencing a remarkable growth phase, fueled by strong population growth, a thriving economy, and significant infrastructure development. According to the 2020 U.S. Census Bureau, Utah was the fastest-growing state over the last decade, leading to an increased demand for housing and commercial spaces. As new projects continue to emerge, the need for skilled tradespeople, to support this expansion, becomes fertile ground for aspiring HVAC, plumbing, and electrical contractors to enter the market and capitalize on the growing demand.

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Private equity in construction

Private equity investment differs from traditional financing in that it often involves larger sums of capital, allowing businesses to scale rapidly. In the skilled trades— such as HVAC, plumbing, or electrical— private equity firms have recently begun providing financial backing that enables contractors to expand their operations, hire additional staff, and invest in cutting-edge technologies. This influx of capital not only helps established contractors grow, but also creates pathways for new entrants to the field. As reported by Forbes in October 2024, this trend has led to some tradespeople achieving remarkable financial success, becoming millionaires seemingly overnight.

This influx of capital not only leads to higher wages but also better working conditions and job security. For instance, technicians at HVAC companies acquired by private equity firms have experienced salary increases of up to 20% within the first year following the acquisition.

With nearly 800 acquisitions in the skilled trades sector since 2022, according to Wall Street Journal (citing data from PitchBook), this recent surge toward private equity investment may soon also begin reshaping the landscape for contractors in Utah.

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Future trends in skilled trades

The skilled trades industry is poised for transformation due to the influence of private equity. As new technologies emerge and client expectations evolve, contractors who stay informed and adaptable will be best positioned for success. Understanding industry trends, from advancements in sustainable practices to the integration of smart technologies, will be crucial for contractors looking to stay competitive.

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The importance of networking and partnerships

As the HVAC, plumbing, and electrical skilled trades evolve, building relationships in the construction industry becomes more valuable than ever. Engaging with seasoned professionals, suppliers, and simply staying involved with the industry can open the doors to collaboration and growth opportunities, including introductions to private equity-backed firms. Networking can help you gain insights, access resources, and potentially secure contracts that might not be available to those operating in isolation.

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We are a launchpad for your business

As private equity firms seek to invest in skilled trades, now is the ideal time to seize the moment and build a successful career. Contractor School equips aspiring contractors with the training and support to obtain their Utah contractor license, laying the foundation needed to capitalize on opportunities as they’re presented. Through comprehensive training, you not only learn about the technical aspects of your trade and business fundamentals, but will also have a long-term partner dedicated to helping you thrive in a competitive environment.

At Contractor School, we simplify the daunting journey to becoming a licensed contractor. Our services include assistance with setting up your business, licensing applications, ongoing education, and business resources tailored to your needs. We provide personalized guidance, keep you compliant, and are committed to giving you more time to focus on the success of your business.