America's new millionaire class: Plumbers and HVAC entrepreneurs

Original Article ↗ Hacker News Discussion ↗

Private equity firms are rapidly buying up local plumbing, HVAC, and other home-services businesses, creating a small cohort of millionaire owners while raising fears of higher prices, worse service, and regulatory capture that locks out new small entrants. Commenters contrast the relatively modest median wages of individual tradespeople with the outsized rewards for those who own and sell firms, and argue that media narratives of “rich plumbers” obscure this gap. Many also frame skilled trades as an attractive alternative to unstable or stressful white‑collar tech work, while warning that consolidation could erode both job quality and consumer choice.

Tech Jobs vs Skilled Trades

  • Many commenters contrast tech workers’ complaints (e.g., RTO, office “stress”) with physically dangerous or disgusting work in trades (plumbing in sewage, chemical plants, construction heights).
  • Others counter that mental stress from high-stakes tech work can be severe, and some find manual labor (e.g., farm work) better for mental health.
  • Several note tech workers are often unaware how good their working conditions are, but also acknowledge office stress is “real, but different.”

Private Equity & Consolidation

  • Strong concern that PE rollups of HVAC/plumbing/electrical firms will:
    • Create local monopolies/monopsonies.
    • Raise prices, cut quality, and overwork employees.
    • Pursue regulatory capture via “safety” certifications that small shops can’t meet.
  • Examples cited from vets, dentists, dermatology, car dealers, and HVAC where PE ownership is perceived to worsen service and increase prices.
  • Some argue this PE “cycle” eventually opens space for new small firms; others fear regulation and search/marketing advantages will block new entrants.

Earnings, Wealth, and “Millionaire Tradespeople”

  • Repeated clarification: big money is usually in owning a trades business, not being an employee.
  • BLS numbers shared show median wages for plumbers/electricians roughly in line with national medians; software developers earn roughly double.
  • Counterpoints:
    • Self‑employed tradespeople can under‑report income, split income with spouses, barter with other trades, and expense vehicles/tools, making official stats understate true benefit.
    • In some regions and niches (union industrial work, data center construction, mining FIFO roles), electricians and similar can clear high six figures, often via overtime.
    • Early homeownership in HCOL areas can make long‑time tradespeople “millionaires” on paper via home equity; how typical this is remains disputed.

Pricing, Overhead, and Small Jobs

  • Sticker shocks (e.g., $500–$700 to run a short thermostat cable or replace a capacitor) spark debate.
  • Tradespeople and some commenters argue:
    • Quotes reflect travel time, scheduling inefficiency, paperwork, licensing, insurance, and opportunity cost of giving up a full‑day, high‑value job.
    • High quotes can be a deliberate way to decline small jobs; if accepted, they at least cover overhead.

Service Quality, DIY, and Information Asymmetry

  • Multiple stories of:
    • Unnecessary full‑system replacements pitched instead of cheap fixes (e.g., capacitors, sensors, wiring).
    • Shoddy installs (miswired stages, misconfigured equipment, unsafe connections).
  • Commenters note HVAC/plumbing are ripe for grift because customers are dependent and lack knowledge.
  • Some advocate moderate DIY (especially for common HVAC failures) and getting certified to reduce vulnerability.

Barriers, Regulation, and Tech “Democratization”

  • Many say trades are already “democratized”: community college programs exist and most firms are hiring; the real barrier is hard, dirty work.
  • Others warn future regulation and licensing (e.g., long apprenticeships, tool standards like SawStop) may be used to restrict supply.
  • Tech’s role seen mostly as back‑office (dispatch, scheduling, AR for planning) rather than “Uber for plumbers,” which many distrust.

Lifestyle and Career Trade‑offs

  • Pros of trades highlighted: defined paths, union pay/benefits, less offshoring risk, camaraderie, possibility of owning a business, lower student debt.
  • Cons: physical wear, risk of injury, outdoor/extreme conditions, and regional/boom‑bust patterns.
  • Some ex‑tech workers report better blood pressure and well‑being after moving into hands‑on work, even with lower income.