Why College? Part Three: Trade School Kid

Vocational education is not "high school for dummies."

It is liberating to know how to do something useful.

Today's Guest Post is from John Coster. He graduated from Nashoba Valley Technical High School in the northern suburbs of Boston, near the New Hampshire border. It now calls itself "Your Skills Focused Public High School." Back when it was founded in the 1960s it was called a "Vocational" High School. It had some classes in the typical things taught in high school--English, math, civics--but its primary emphasis was on teaching students practical things in hands-on shop-type classes. I knew the school's first principal. He was proud of the distinction between his vocational school and "regular" high schools. His high school graduates would have "learned a trade and could go right into industry." Not so in the high schools of the kind I attended, he would remind me.

Yesterday's post noted the value of college as a time of exploration. People are free to find out what really interests them. There is another approach to entering young adulthood. Be employable, which gives you the financial and psychological wherewithal to explore the opportunities that present themselves in life. Coster took that tack. Over his 40-year career, he owned and operated electrical contracting companies. That evolved into work overseeing the design and construction of multimillion-dollar projects for Amazon, Microsoft, T-Mobile, CenturyLink, and Toyota.

Coster

Guest Post by John Coster

I have been told over the years that my career trajectory is an anomaly.  The narrative was that the “trade school kid” beat all odds and leapfrogged into a successful professional career without any college. Numerous studies show a strong correlation between education level and earnings, and that seems to be the unquestioned basis for people going to college. But are these data over-generalized and misleading when it comes to making decisions about everyone’s career path?  

I realize the following examples are anecdotal, but I think they also tell an important story. Many readers probably know similar stories. 

•        My cousin studied carpentry in vocational high school and has done amazingly well building his high-end residential cabinet/millwork business, providing a good living for his family and good-paying jobs for his employees and business to his suppliers. 
•        A guy in my church started as a framing carpenter, became a spec, then a custom (Street of Dreams) home builder. He learned that land development had different cycles for risk and profit potential so he became a land and commercial real estate developer. He and his sons now develop, own, and manage a large and growing portfolio of commercial mixed-use space. He has enough savvy and financial headroom to land-bank property until the market timing is right. He never went to college.
•        Another friend started with a small cabinet shop in his garage and grew it to a $50 million business, providing prosperity to his family (and a foundation), a legacy to his children, (he just passed it on to his sons), and good and valuable jobs for his employees. He also never went to college. 
•        The owners of the electrical engineering and construction contractor where I worked for over 10 years were “mere” electricians who built a $100M business. Also, no college. Not even business school. They hired college-educated accountants, attorneys, and engineers. 

Since I know each of these people, I can tell you they would not likely have done well in formal book learning, test-taking, paper-writing, and academic settings. None of them care about arguing abstract theories, fancy titles, or publishing papers that are cited by their peers. They would never read this blog. They are all optimistic, opportunistic, risk-taking doers. Several of them faced near insolvency at some point and fought their way back with grit and determination (and a little luck).

Okay, we can say these are examples of creative entrepreneurs who had some luck. So, what about the earning potential of the non-college-educated worker-bee? Here are some numbers.  The IBEW Local 46 (electrical union) here in Seattle will take in a starting electrical apprentice with no skills at $24/hour + benefits, health, and pension, growing to $57/hour after 4 years as a journeyman. If they oversee a crew, they can make up to $69/hour. That’s almost $140/k per year for just 40 hours a week. They get paid Time+1/2 over 8 hours and Saturday work and double time on Sundays. It’s not difficult for just a working guy to pull $150k and a general foreman to clear $200k without a sweat. Oh, and all the training is paid for. 

According to the welding trade magazine, Fabricator, the median wage in 2019 for welders is $35/hour. That’s still $70k a year at 40 hours per week, and many companies like Seattle City Light offer free training and certification. It’s not for everyone but it’s a great fit for many who would otherwise be working at Pizza Hut or driving for Uber. Plus there is always ample side work. 

What many people miss is that these kinds of jobs are mostly “off-shore” proof and not easily replaced by automation. There’s a short supply and big demand and it takes years to build the skills needed to be proficient. The talent supply is not fluid.

I remember touring college campuses around the country with my kids, how each school sold itself as “The place” for preparing and unleashing my student’s full potential; preparing each one for a rich and flourishing life – which presumably meant a prosperous livelihood if they choose. We bought it, and while we don’t regret that we underwrote our kids’ educations, I am convinced that it was overhyped and would rethink it today. 

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