Increased Interest in Blue-Collar Jobs in the US
US Private Equity Firms Acquiring HVAC Companies
As interest in blue-collar jobs rises in the United States, HVAC (Heating, Ventilation, and Air Conditioning) repair technicians are emerging as new 'millionaires.'
According to the Wall Street Journal (WSJ) on the 14th (local time), private equity firms in the U.S. have recently been acquiring a large number of profitable HVAC companies. Since 2022, the number of HVAC companies acquired by private equity firms has already exceeded 800. This figure excludes small-scale and private transactions, so the actual acquisition volume is estimated to be even larger.
Adam Hanover, chairman of private equity firm Redwood Services, stated, "Currently, every investor in the industry is showing interest in the HVAC business." Redwood Services has also acquired 35 companies with enterprise values ranging from $1 million to $20 million (approximately 1.3 billion to 2.7 billion KRW) over the past four years. In particular, the large HVAC company Lightway, acquired by Redwood Services, doubled its annual revenue from $30 million (about 4.07 billion KRW) to $70 million (about 9.5 billion KRW) by expanding capital, increasing the number of employees, and introducing training programs for new hires.
Investors highly value the growth potential of the HVAC business. Graham Weaver, founder of private equity firm Alpine Investors, emphasized, "Anyone with entrepreneurial ambition should reconsider this profession, which offers stable income through tasks like unclogging toilets, boiler repairs, and air conditioner installations," adding, "It is possible to build a business valued between $10 million and $30 million (approximately 1.35 billion to 4.07 billion KRW), and there is already a list of potential buyers."
Dana Spears (51), who founded an HVAC company in Florida in 2006 and grew it to a 100-person company, said, "This industry is one of the businesses where you can achieve the American Dream if you have grit." She recently decided to sell her company to a private equity firm and is planning a one-year vacation.
Blue-collar jobs, which refer to manual labor occupations, were once avoided by young people due to their difficulty, but wages have surged sharply through the COVID-19 pandemic, making them popular jobs. According to the U.S. Department of Labor, machinists, who do not require a college degree but must undergo apprenticeship training, earn $23.32 per hour (about 31,600 KRW), and carpenters earn $24.71 per hour (about 33,500 KRW). These wages exceed the starting hourly wage of white-collar college graduates, which is $20 (about 27,000 KRW).
Additionally, the large-scale restructuring centered on white-collar workers during the COVID-19 pandemic has also increased interest in blue-collar jobs among younger generations. The nonprofit organization Employ America estimated that 150,000 white-collar workers lost their jobs in the U.S. over one year starting from March 2022. Workforce reductions continue in IT sectors as well, except for some industries like AI and semiconductors.
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