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Plumbing & Mechanical Contractor

Why Skilled Technicians Are Harder Than Ever to Keep

Construction hiring has outpaced overall private-sector job growth for more than a decade, but the labor pool hasn't grown fast enough to meet demand.

By Kit Dickinson, Industry Executive
A contractor and apprentice look over documents on a jobsite.
Image courtesy of Pexels.
August 13, 2026

Ask plumbing and mechanical contractors about some of the biggest obstacles to growing their business, and they’ll likely point to people.

According to ADP Research’s Today at Work 2026, Issue 2, construction workers who changed employers in June 2026 received an average 12.9% pay increase. That's nearly double the 6.6% increase for job changers across all industries. For plumbing and mechanical contractors, that statistic reflects the same reality they face every day: experienced plumbers, pipefitters and HVAC technicians have more employment options than ever.

The message is clear.

For plumbing and mechanical contractors, every resignation affects more than just the number of employees on payroll. It can delay projects, reduce service capacity, increase overtime for the rest of the team and force companies to pass on work they would otherwise pursue. Taking the steps to replace an experienced technician or licensed tradesperson also requires time and thoughtfulness to nail correctly.

The numbers help explain why. Construction hiring has outpaced overall private-sector job growth for more than a decade, but the labor pool hasn't grown fast enough to meet demand. The ADP data also found that median annual gross pay for construction job changers reached more than $59,100, compared with $43,200 for job changers across all industries. Technicians and skilled trades professionals know their skills are valuable, and competing employers are willing to pay for them.

Demographic shifts also continue to put pressure on the labor pool. Many veteran tradespeople are now reaching retirement age, and the industry's ability to replace them with younger workers has lagged behind demand. The impact is showing up in workforce data. According to ADP Research, the median age of electricians, plumbers and HVAC technicians has declined by as much as five years since January 2020, reflecting the significant number of experienced professionals who have exited the field.

At the same time, there are indications that workforce growth is beginning to gain momentum. Rising compensation, expanded apprenticeship opportunities and greater investment in skills training are helping bring new workers into the trades. Strong residential construction activity and above-average bonus payouts are also adding to the appeal. In fact, ADP Research reports that workers hired within the previous three months represented 3.6% of construction employment on average between 2019 and 2025. In 2026, that share has climbed to 4.6%, suggesting that hiring activity is accelerating.

Even so, bringing new people through the door is only part of the workforce challenge. As competition for experienced talent intensifies, contractors must focus not only on attracting workers but also on creating reasons for them to stay.

6 Ways to Keep Plumbers and Technicians From Walking Out the Door

  1. Know What Competitors Are Paying Compensation can change quickly, especially when demand spikes in a local market. Organizations should be keeping a pulse on wage levels all the time, not only when annual reviews come around. Leveraging compensation benchmarking tools can provide valuable data around pay, particularly if you're expanding into a new region or competing for specialized talent. A more informed approach to pay ultimately enables your organization to make competitive offers and reduces the chances of losing experienced employees over a preventable pay gap.
  1. Compete On More Than Wages A higher hourly rate may get someone's attention, but it's rarely the only factor in a career decision. Employees also consider healthcare, paid time off, retirement savings, training, career advancement and work-life balance as part of an overall benefits package. These can also vary by age. For example, younger technicians may value education assistance or certification programs, while more experienced employees may place greater value on healthcare benefits. 

The importance of skills development as an employee recruitment and retention tool too is on the rise. According to ADP Research’s Today at Work, workers who believe their education prepared them for the workforce were nine times more likely to say they have the skills needed to advance in their careers, signaling that today’s workers are looking for further learning and development. 

More contractors are now also using retirement plans as another way to retain experienced employees. A strong workplace savings program won't prevent every resignation, but it reinforces a long-term relationship between employees and the company. In a competitive labor market, that can become another meaningful reason to stay.

  1. Build Your Brand  With more information at their fingertips than ever before, today's job candidates deeply research employers before they even submit an application. This provides a great opportunity for employers in the skilled trades to use their website, social media channels and employee testimonials to show what makes their company a good place to build a career. By showing your commitment to workplace safety, investments in AI tools and technology, challenging projects and their impact on the community, you can establish a well-defined employer brand to attract new talent.
  1. Create Clear Career Paths People are more likely to stay when they can see a future with your company. Apprenticeships, manufacturer certifications, cross-training, licensing support and leadership development help employees continue building their skills. With 20% of workers in construction and related trades reporting daily AI usage, there’s also an opportunity for leaders in the skilled trades to integrate the technology into their workflows to prepare workers for the future. They also create a stronger pipeline for future foremen, project managers and service leaders by upskilling them and reducing the need to recruit those roles from outside the organization.
  1. Stay Connected With Your Workforce Employees rarely leave because of a single conversation. More often, disengagement builds over time when workers feel overlooked, unheard or uncertain about where they stand. Regular check-ins, employee feedback programs and recognition of strong performance give managers insight into employee priorities before they affect retention. They also help strengthen trust between employees and leadership. Contractors that communicate frequently, listen actively and demonstrate genuine interest in their employees' success are better positioned to build the kind of workforce people want to remain a part of.

The bottom line

The 12.9% pay increase for construction job changers provides a powerful reminder that skilled workers understand their value in today’s market. It’s now up to employers to meet the moment and evaluate their talent retention strategies. The firms that understand local pay trends, build a strong organizational reputation, invest in training, and offer competitive benefits will be better positioned to retain experienced technicians.

Plumbing and mechanical contractors can't stop competitors from recruiting their employees, but they can make themselves the employer people don't want to leave.

KEYWORDS: construction industry employee retention labor shortage skilled trades

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Kit dickinson

After spending six years at Accenture leading technology and strategy projects, Kit Dickinson moved on to IDI where he was president and responsible for managing strategic partnerships, product innovation, sales, marketing and overall company leadership. Dickinson led IDI to a successful acquisition by ADP where he was responsible for overseeing integrating IDI’s capabilities into ADP technology. Dickinson recently moved into ADP’s Business Development organization as an industry executive to help lead ADP’s industry-focused efforts.

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