State projects tens of thousands of skilled trades openings as data centers, power projects and manufacturing expansions compete for workers

LANSING — Michigan leaders want the state to become a major player in the artificial intelligence economy.

Developers are proposing massive data centers. Utilities are planning billions of dollars in grid upgrades. The Palisades nuclear plant is moving toward restart. Electric vehicle and advanced manufacturing projects continue to expand across the state.

But there is one question that receives far less attention than electricity demand, tax incentives or economic development subsidies:

Who will build it all?

Michigan is facing a growing shortage of electricians, welders, pipefitters, HVAC technicians, line workers and other skilled trades workers at the same time demand for their services is accelerating.

According to the Michigan Department of Labor and Economic Opportunity (LEO), professional trades account for more than 520,000 jobs statewide and are expected to generate approximately 45,000 annual openings through 2030.

The shortage is becoming more than a workforce issue. It is increasingly an economic development issue.

KEY FACTS: MICHIGAN’S SKILLED TRADES SHORTAGE

45,000 projected skilled trades openings annually through 2030

520,000+ professional trades jobs statewide

255,000 current skilled trades workers

$90,000 median annual earnings one year after apprenticeship completion

$4.7 Billion Gordie Howe International Bridge opening this week

Billions More planned for AI data centers, grid upgrades, manufacturing plants and energy projects

The Challenge: Many of these projects require the same electricians, welders, pipefitters, HVAC technicians and line workers.

AI Is Creating Demand For More Than Software Engineers

Artificial intelligence is often portrayed as a battle among technology companies, software developers and computer scientists.

In reality, AI is also creating a construction boom.

Every large-scale data center requires teams of electricians to install power systems, HVAC technicians to build cooling systems, welders and pipefitters to assemble infrastructure, and line workers to connect facilities to the electric grid.

The proposed data center development in Saline Township, additional projects under consideration elsewhere in Southeast Michigan, transmission upgrades planned by utilities and new power generation facilities will all require many of the same workers.

Nationally, the labor crunch is already becoming evident.

Reuters reported in May that the rapid expansion of AI data centers, power plants and transmission infrastructure is intensifying competition for electricians and other skilled trades workers across the country.

“The insatiable demand for data centers has greatly increased the demand for electricians,” Associated Builders and Contractors Chief Economist Anirban Basu told Reuters.

The news organization also reported that roughly 41 percent of the nation’s construction workforce could retire by 2031, creating additional pressure on employers already struggling to find qualified workers.

Could The Gordie Howe Bridge Ease The Shortage?

One wildcard is the opening this week of the $4.7 billion Gordie Howe International Bridge connecting Detroit and Windsor.

The bridge employed thousands of skilled trades workers over its nearly eight-year construction period, including electricians, iron workers, operating engineers, laborers, pipefitters and cement masons.

Its completion raises an intriguing question for Michigan employers:

Will those workers now become available for the next wave of major construction projects?

Possibly.

But the answer may not be that simple.

Many of those workers are already being recruited for other infrastructure projects across Michigan and neighboring states. Some may choose retirement. Others may relocate or move into different sectors.

At the same time, Michigan is pursuing data centers, transmission projects, manufacturing expansions, utility upgrades and energy infrastructure investments that could quickly absorb much of that labor force.

In other words, the completion of the Gordie Howe Bridge may provide some relief, but it is unlikely to eliminate the broader shortage facing Michigan employers.

Retirement Wave Adds To The Challenge

Demographics are also working against employers.

Many skilled trades workers who entered the workforce during earlier construction and manufacturing booms are approaching retirement age.

At the same time, for decades many students were encouraged to pursue four-year college degrees rather than apprenticeships and technical training programs.

As a result, the pipeline of replacement workers has not always kept pace with demand.

The issue has become significant enough that Meta recently announced a $115 million workforce training initiative designed specifically to prepare workers for jobs building and operating AI data centers across the country.

The initiative underscores a growing reality: Technology companies are now competing not only for software engineers, but also for electricians, technicians and skilled construction workers.

The New High-Paying Careers

The labor shortage is creating opportunities for workers willing to enter the trades.

Michigan officials note that many skilled trades careers offer strong wages, benefits and advancement opportunities without requiring a traditional four-year degree.

Registered apprenticeship programs allow workers to earn a paycheck while receiving training, avoiding the student debt often associated with college.

Many apprentices earn while they learn, and median annual earnings for workers one year after completing a registered apprenticeship approach $90,000.

Experienced electricians, industrial maintenance technicians, HVAC specialists and power systems workers frequently earn salaries that rival or exceed many white-collar professions, particularly when overtime and benefits are included.

For younger workers entering the labor market, the trades increasingly represent a pathway to middle-class and upper-middle-class incomes.

Can Michigan Build Its Future?

Michigan’s economic development strategy increasingly depends on projects that require large numbers of skilled workers.

Data centers need electricians and HVAC technicians.

Grid modernization projects need line workers and electrical contractors.

Manufacturing plants need welders, millwrights and industrial maintenance specialists.

Power plants need pipefitters, electricians and operating engineers.

All are competing for the same labor pool.

Michigan’s challenge may no longer be whether it can attract billion-dollar investments.

The bigger question may be whether it can find enough skilled workers to build them.

WHAT’S NEXT?

In Part Two, MITechNews will examine:

  • What the Michigan Building Trades Council says about labor shortages
  • Whether IBEW apprenticeship programs are keeping pace with demand
  • How community colleges are expanding skilled trades training
  • What utilities need to build future grid infrastructure
  • Whether labor shortages could delay Michigan’s AI and energy ambitions

The answers may determine whether Michigan can successfully build the projects it hopes will power its next economic boom.