Blue Collar Business Consolidation

Kevin Van Trump discusses the opportunity in rolling up blue collar and trade businesses, particularly focusing on acquiring and consolidating businesses where owners are retiring and fewer young people are entering the trades.

Key Points:

• Market Opportunity:

  • Large number of trade business owners are retiring
  • Fewer young people went into trades in recent decades
  • Shortage of skilled workers in the space
  • High demand for quality service providers

• Business Model:

  • Buy existing trade businesses
  • Roll them up into larger operations
  • Package them together
  • Sell the consolidated business

• Key Success Factors:

  • Focus on customer retention
  • Provide good quality service
  • Create effective onboarding processes
  • Build scalable operations

• Target Markets:

  • Plumbing unions
  • Electrical unions
  • Pipefitter unions
  • Other skilled trade businesses

• Growth Potential:

  • "Sky's the limit on growth" due to:
    • Ongoing retirement of owners
    • Consistent demand for services
    • Limited competition from new entrants
    • Ability to improve operations through consolidation