URL: http://www.entrepreneur.com/article/26806
In recent years, headlines about labor shortages have focused on
software engineers and computer technicians, and little attention
has been paid to the shortage of high-skilled, blue-collar
tradespeople, the backbone of small suppliers to manufacturing
industries.
But that's about to change. Rep. Jim Talent (R-MO) is working
to raise the visibility of the issue and provide a solution-by
sponsoring the Skilled Work--force Enhancement Act (H.R. 1824). In
February, the first set of hearings was held in the House Small
Business Committee chaired by Talent. "Our unemployment rate
is the lowest [it's been] in 30 years-just 4 percent-and we are
enjoying a healthy economy," Talent says. "However, it
seems prosperity is coming at a very high price. We aren't
attracting enough qualified and trained employees to our
manufacturing trades, and that could very well end the prosperity
we are experiencing today."
The bill aims to help companies like the Bachman Machine Company
Inc., a 130-employee metalworking company in St. Louis. William
Bachman Sr., who retired as president a few years ago, says the
metalworking industry has 30,000 unfilled jobs due to the lack of
qualified applicants.
The majority of metalworking training programs take four years to
complete and cost more than $200,000 per apprentice. Finding
candidates for those training programs has proved difficult.
Talent's bill targets small businesses that would benefit from
claiming a $15,000 per-worker, per-year training tax credit, and it
also covers heating, ventilating, air conditioning, refrigeration,
plumbing, pipe fitting, roofing contracting, and other highly
skilled trades.
Congress seems almost certain to pass a tax cut bill this
year-meaning there might be a larger bill to which the Talent bill
could be appended. Sen. Mike DeWine (R-OH) sponsors the bill on the
other side of Capitol Hill, in addition to one Independent, 21
Democratic and 34 Republican co-sponsors.
The bill would be a revenue-loser for the U.S. Treasury, but its
advocates insist it will pay for itself. "While $15,000 may
sound like a lot of money, apprentices will repay the government
through taxes within three years of graduation," says Bachman.
"The Joint Tax Committee may score this proposal fairly high,
but to save the manufacturing infrastructure of this country from
extinction, we must give small businesses this tool." For
info, visit www.house.gov; go to
"Small Business Committee."
Stephen Barlas is a freelance business reporter who covers the
Washington beat for 15 magazines.