By Kevin M

In the 1990s and early 2000s no one was seriously questioning the sustainability of large price increases in housing, or the integrity of the mortgages they secured. The same was true of the stock market in the 1980s, in the 1990s and again in the early 2000s. As we’ve seen in each case, that level of certainty is often the last step before a crisis.

A similar level of faith continues to exist in the assumed value of a college education and in the student loan debt commonly used to obtain it.

21st Century quandary: a college education has risks!

A college degree has value, and will continue to in the future—I have one myself. But the problem is that a college education today carries risks that it didn’t just a decade or two ago:

1. The spectacular rise in the cost of college can leave a student and his family burdened by debt for years into the future; for the student that debt could impair future career mobility. (However there are affordable degree opportunities available like Baker University Kansas)
2. Technology and off-shoring of jobs means a real risk that either employment in a given degree field will be limited or that pay will be less than expected
3. Opportunity cost of non-college fields not pursued

None of these may be an issue for a well-to-do family with plentiful resources and numerous options, but many middle class families have come to fully expect that money paid for their children’s higher education will pay off, and usually pretty quickly.

While degrees in fields like medicine and engineering may continue to be “money in the bank”, sending a child to college to pursue a less technical degree with the hope that he’ll somehow find his niche may be a luxury many families can no longer afford.

What are the alternatives to college careers?

You’ve heard the investment disclaimer, “past performance is not a guarantee of future returns?” It should now apply to careers. The fact that a given career field was a prosperous one in the recent past doesn’t mean it will continue to be in the future.

The pattern of careers in the last few years has been one of perpetual change. As noted above, technology and off-shoring of jobs and industries means many careers are no longer the safe havens they once were. Though insecurity has become the order of the day in a variety of fields, the greatest damage occurs in the ones that cost the most to enter, which are generally those in the college norm.

What careers or career skills could a young person consider in lieu of college?

Skilled trades and some non-degree jobs are always in demand

There was once an unquestioned assumption that recessions and depressions would take down blue collar jobs, but a well educated white collar employee would always be safe. That assumption is increasingly weak.

Many of the skilled trades are now providing more stable employment—and often at higher pay—than the white collar jobs so many eagerly seek. Part of the reason for this is that skilled trades require that the worker be physically present. Another is that the flood of young people into colleges and universities has thinned the ranks of those who might otherwise pursue the trades.

Last week, in 6-Figure Jobs — No Degree Required ( CNNMoney.com, 9/17/2010) reported the following six non-degree careers that can pay six figures, with median and top pay levels for each:

Fire Chief, $72,900; $121,000
Air Traffic Controller, $83,700; $159,000
Nuclear Power Reactor Manager, $86,200; $128,000
Director of Security, $68,700; $123,000
Elevator Mechanic, $72,900; $109,000
Court Reporter, $57,200; $105,000

This is a short list, but if you think about everyone you know and what they do for a living, you can come up with more non-college occupations to add to this list.

Preparing for life as an Entrepreneur

In many respects, self-employment is the ultimate career solution. People who can earn a living from their own business never need anyone to give them a job. And if you can earn your own living, credentials—including higher education—are generally less important than when you’re competing against a large pool of others for a limited number of traditional jobs. With job security slipping into largely myth status, encouraging young people to prepare for self employment may be the most responsible advice we can give.

Critical question: does college actually prepare students for self-employment?

My sense is no. On balance, college trains students for life in the corporate realm. Largely judged on post graduate job placement rates, schools facilitate, attract and encourage on-site recruiting by large organizations. Curriculum is often based on the needs of these organizations. Training for a career in self-employment or in a small business, if it does take place, seems mostly incidental.

Not only is this poor preparation for self-employment, but it can also serve as a hindrance. Training in organizational behavior and psychology leave the graduate unprepared for a career based on self reliance and risk taking, two crucial aspects of self employment.

How do you prepare for self employment if not through college?

• Learn a trade—hands on skills often convert readily into self employment, and can be acquired through technical schooling and/or paid apprenticeship
• Acquire sales experience—academicians generally look down on sales, but no matter what skill or product you have, the ability to sell it to the end user is the most critical difference between an employee and the owner of the business; on the job training is the best preparation for this
• Work for a small business—the smaller the business, the more involved with big picture of a business and the closer you are to its customer base, the greater the likelihood of starting your own business; partnership in- or acquisition of- the business are also possibilities
• Start a side business–a relatively low risk way of starting and growing a business; a venture started early in life could be expanded over time until it blooms into a full time career; trial and error—along with passion for the venture—will provide what formal education can’t

There’s a persistent belief—and one not entirely without justification—that not everyone is cut out to be self employed. I would agree that not everyone should plunge into their own business as a full time venture. But I also believe that if everyone who could be self-employed would be, the number of jobs available for those who can’t would increase substantially. Starting a side business is an excellent way for many to do this.

Do you believe that a college education is still the best path for most young people? What do you think of the alternatives I’ve presented? Can you think of any others?

By Kevin M

In Jobs and Careers That Aren’t Coming Back we listed and discussed 13 career fields that are in a state of decline and unlikely to recover. Today we’ll cover the very opposite: job fields that are here to stay and likely to expand.

Global off-shoring of jobs and advances in technology are squeezing many jobs and careers into gradual extinction, as computers and cheap overseas labor eat away at once common fields of employment. But not all career fields are affected.

People who can produce or fix things often have the greatest job security. The world is full of machines, all in need of service or repair sooner or later. Being one of the people who can keep them going is a chance to start to a side business or to full scale self-employment. Equally important, though we tend to think of most innovation occurring in laboratories, many technological discoveries happen somewhere out in the field, produced by people who can work with their hands.

Fields that are actually expanding job opportunities

In Blue-Collar Jobs in Demand for 2010 Michelle Goodman lists the following job categories, all having positive future prospects:

• Plumber, pipe fitter, or steamfitter
• Elevator installer/repairer
• Carpenter
• Electrician
• Automobile mechanic
• Heating, air conditioning, or refrigeration mechanic/installer
• Roofer

I’ll add another to that list: Home remodeling and repair. Given the weak economy and the even weaker housing market, a lot of homeowners are opting to renovate rather than move. I know a few people in home remodeling and they’re busier than ever.

(An even broader list appears in The Skilled Trades Are Well Worth Investigating.)

Irresistible advantages

There are more than a few advantages to blue collar work, even in this golden age of college education.

No outsourcing. These jobs can’t be outsourced to Bangalore or any other location anywhere in the world. The work involved in blue collar jobs is done on site with human hands and as marvelous as the accomplishments of technology have been, the ability to replace that involvement probably won’t come in our lifetimes, or even many lifetimes to come.

No transfers. It’s highly unlikely that you’re job will be transferred to a location somewhere across the country. In Buying vs. Renting a Home – Its Not All About Money, one of the factors that needs to be considered in the buy vs. rent decision is local job stability. Given that house values are no longer rising to support the five-years-and-flip game, having a career that enables you to stay in your home and community long term is more important than ever.

No student debt. You won’t come out of the gate carrying five- or six figures in student loan debt. Blue collar jobs are typically entered through apprenticeships supplemented by classroom training. It’s more of an “earn and learn” in the old world tradition.

No meetings or business travel. Maybe this is my personal opinion taking hold, but I find that meetings and business travel often waste a lot of time and energy.

Second income potential. How many desk jobs are readily convertible into second incomes or side businesses? By contrast, the trades lend themselves well to engaging in a side business especially.

Barter potential. If you can build or fix something, you have something to trade on the open market. Since blue collar jobs essentially involve building and fixing, you have a barter skill built into your regular career. You can develop an informal barter arrangement with other trades people, or to trade for other services you need.

Job mobility. One of the advantages of blue collar work, at least the skilled trades, is that there’s demand for workers in nearly every city, state and region in the country, and even in the world. Many career fields are regionally concentrated, but electricians, plumbers and carpenters are needed everywhere.

The blue collar worlds Achilles heal

Every career field comes with one or more weak spots, and the blue collar world is no exception. With the obvious exception of auto mechanics and home remodeling, a significant slice of blue collar workers are concentrated either primarily or entirely in new construction.

The boom/bust cycle of real estate development, whether residential, commercial or industrial, puts many blue collar jobs—the ones dependent on new construction—at even greater risk than other career fields. The recent experience in the home building industry testifies to this.

The security of blue collar work then is in those jobs centering on service and repair of existing systems. Not only is repair work the most secure, but it also offers the greatest potential for self-employment.

Blue collar work isn’t for everyone, but…

Who might consider entering a blue collar field?

• Young people facing the decision to enter a college degree program they really can’t afford and the student loan debt burden which will inevitably follow,
• 20-somethings who may have a college degree, but are finding few employment prospects, or
• People over 30 who have lost their jobs and see little chance of re-employment in the same field.

I have a nephew who left college to train to be a diesel mechanic and he absolutely did the right thing. Not only is he making an above average income, but he has far greater employment security than most other careers in the past few years. Though I have a college education myself, my wife and I are advising our teenage son to follow the same course as his cousin.

Taking a plunge into a blue collar profession fits the true definition of “retooling”. But sometimes you have to take a step back to go forward.

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If you could do it all over again, would you consider a blue collar field? Are parents maybe doing their kids a disservice prompting and prepping them for college without considering alternatives? Is there more employment security in college norm occupations or in the blue collar trades? Do you know any people who chose the blue collar route and have thrived, even in this economy?

By Kevin M with Larry McMahon, Elevator Repair Specialist

If you have a knack for repairs and you’ve been thinking about a career change, you might want to look into elevator repair…seriously!

Every contraption known to man eventually needs repair or replacement, virtually guaranteeing there will always be work available for the repairmen of the world. But the best opportunities are in fixing the equipment we don’t commonly think about, maybe because not nearly as many people ever enter the fields.

For starters, a college degree is not required for elevator repair. I did a web search for “elevator repair schools” and “elevator repair programs” and came up with nothing each time. Per Larry, on the job training is the only way in, and with so few people aware of the field, the line at the door isn’t all that long.

How Do You Get In?

So who gets in and what qualifications are needed? Larry didn’t grow up wanting to be in elevator repair, so his early career life took some turns that didn’t exactly look as if his future would land him where it did.

He took auto repair courses in high school, planning to become a mechanic. He never did become a mechanic, but spent several years working in plumbing and heating with various employers. While neither the auto repair courses nor the plumbing experience trained him in any direct way for elevator repair, they did provide a background in basic repair and troubleshooting, as well as the knowledge of tools and what they can do—all solid foundations.

So how did Larry get in? “I just applied for the job. It sounded interesting, but I had no referrals inside or outside the company I applied at and no background in anything electrical—which is pretty basic. It looked like a long shot. But they called me in, and here I am many years later. I started as a helper, which is where everyone starts, but now I’m one of the guys doing the hiring.”

And what does he look for in candidates for hire? “There is no one type of person we look for. Some of the people who seem most qualified don’t make it, and others who seem completely unqualified up front work beautifully. A background in anything related to mechanics or electrical is a big plus, but apart from that we look at attitude and willingness to learn. A person can learn mechanics and any other skill, but attitude and willingness to learn are something you have to walk in the door with.”

As to advance preparation he recommends taking a course or two in either auto mechanics or electrical. Electrical is especially important because it develops an understanding of circuitry.

Apprenticing can take several years, but the pay and benefits are solid in the meantime, and it can be done in two to three years if you’re really motivated. Before being turned loose, you will need to pass a test to be an elevator mechanic. You have to be sponsored by an employer to do this, and you can take courses while you work.

Larry advises that working for a smaller, non-union firm that will give you more exposure to the various aspects of the business and enable you to learn faster than if you start at a bigger company.

Because elevators are technology based, and technology is in a constant state of change, training is an ongoing process. The training is typically provided and paid for by the elevator manufacturing companies.

Why Elevator Repair?

Money is always a big motivator, and the pay in elevator repair is well above average, and even above what most people earn in college norm occupations.

While pay varies somewhat from one region of the country to another, in Larry’s neck of the woods, helpers (entry level) earn about $26 per hour, while seasoned mechanics can go up to $37 per hour. Benefits are very generous and there’s as much overtime as you want to work. Heavily experienced, well traveled repairmen can make even more.

Some jobs are unionized, others aren’t, and there isn’t much variation in pay between the two. Work in skyscrapers typically is handled through union shops, but non-union shops tend to take on a wider variety of jobs, thus the training and experience are more comprehensive and offer higher pay and greater employment security in the long run.

Beyond money are plenty of intangible benefits. As Larry puts it, “Elevator repair skills are transferable—your skills will be in demand where ever there are elevators. The work is full of challenges and never boring! You’re always learning, and companies tend to hire and promote from within.”

The Affect of the Economy on Elevator Repair

How much affect the economy is having on elevator repair depends on what part of the business you’re involved in, but in general the field tends to be recession resistant.

There are four basic areas: maintenance, modernization (or “mods”), new construction and repair. Maintenance is responsible for keeping elevators operating on an ongoing basis, which includes periodic servicing and troubleshooting; mods handle replacements and upgrades; new construction installs systems in new buildings; repair fixes what’s broken.

The maintenance and repair areas are in constant demand, and are unaffected by the state of the economy. Mods and new construction tend to pay better, especially during economic booms, but suffer when the economy sinks, such as now.

Still, Larry stresses that an elevator repairman who has any level of talent can move up quickly; there are hundreds of companies in the business who are always on the lookout for good people. The key is to learn and grow and not be afraid to take on the tough assignments.

What are the Stresses?

Larry advises that elevator repair isn’t a career for the faint of heart. You will be working in elevator shafts, which carries an obvious element of danger (a good head and mature attitude are also considered valuable attributes!).

“You never know what the problems will be on any job so you’ll need to be flexible and patient. Not only are problems demanding, but so are customers: an elevator building is typically filled with people who need to get somewhere and the pressure to make that happen quickly can add to the stress of challenging repair issues.”

Kevin M

With the job market tightening up in so many fields, and many jobs perhaps gone forever, the time has come to look into opportunities in skilled blue collar occupations.

An article appeared this morning on Yahoo HotJobs called America’s Best Paying Blue Collar Jobs discusses the highest paying jobs in the skilled trades.

Most of these jobs involve installing, servicing and repairing existing systems and technologies of the sort that are required by modern civilization, and are not likely to be eliminated through advancing technologies or even globalization. For that reason alone they merit investigation.

It’s doubtless that some of these occupations came to be precisely because of technology, since all complex systems need to be serviced and repaired on an ongoing basis. As well, the trend of young people, particularly from the middle class, to enter college norm occupations has reduced the number of applicants for these well paying jobs.

Some are very limited fields with only a small number of employees, like locomotive firers (970 employees in the entire field), while others, such as plumbers and electricians, employ several hundred thousand workers.

Certain fields have geographic restrictions. For example, oil and gas rotary drillers jobs will only be available in areas where oil and gas are produced, while aircraft mechanics and service technicians will be at airports, with the best opportunities in cities with larger airports.

Compensation
Herewith, the Top 20 from the article, including average annual salary (source: Forbes):

1) Elevator Installers & Repairers, $67,750

2) Powerhouse Substation & Relay Repairers, $60,700

3) Transportation Inspectors, $59,200

4) Commercial Divers (not DRivers), $54,940

5) Oil & Gas Rotary Drill Operators, $54,370

6) Power Line Installers & Repairers, $54,300

7) Locomotive Engineers, $53,470

8 Boilermakers, $53,100

9) Locomotive Firers, $52,950

10) Telecommunications Equipment Installers & Repairers, $52,650

11) Aircraft Mechanics & Service Technicians, $51,650

12) Pile Driver Operators, $51,640

13) Precision Instrument & Equipment Repairers, $50,400

14) Millwrights, $50,030

15) Electricians, $49,890

16) Railroad Brake, Signal & Switch Operators, $49,400

17) Subway & Street Car Operators, $49,330

18) Commercial & Industrial Electrical & Electronics Repairers, $49,260

19) Plumbers, Pipe Fitters & Steam Fitters, $49,200

20) Signal & Track Switch Repairers, $49,060

Compare the average annual salaries listed for each career with the national average of all salaries of $42,270, as quoted by the article. Also, though the article doesn’t mention this, benefit packages in skilled fields can be more lucrative than what is available in many white collar occupations. This is because either the jobs themselves are in high demand or because they’re concentrated in old line, union type organizations more representative of employer compensation packages of a few decades ago.

Qualifications

As the article states so brilliantly,

“A high school diploma and four or five years of training may sound like a lot, but remember, that’s usually on-the-job training, which can help keep a roof over your head while you work your way up — rather than get you tens of thousands of dollars in debt, as going to college does for so many.”

Earn while you learn; it’s a dated concept now, but it’s the way people learned their livelihoods for centuries prior to the post World War II era, and as the article states, it provides the employee with the ability to earn a real living while perfecting his craft.

For young people searching for a career idea, and for the over 30 crowd looking but not finding that next solid opportunity, the skilled trades may be place to concentrate the search.