Heavy equipment industry powering through diesel tech shortage

Despite the growing demand for housing, agricultural output and upgraded infrastructure in the U.S.—and hence an increasing need for heavy machinery—equipment dealers can’t find enough workers who are properly trained to service the equipment. That reality has led to a domino effect of consequences: longer repair times, slower project completions, logistics delays and other issues that drag down productivity across the country.

“The shortage of diesel technicians has been a problem for many years,” said Darren Grahsl, director of dealer financial services at BOK Financial®. “When machines need repairs and there’s no one available to fix them, things like farming and road construction slow down, and that has a negative impact on lots of people.”

But the tide may finally be starting to shift. Organizations are working together to drive systemic changes in education and recruitment practices, bringing the promise of rewarding careers to a new generation of technicians.

Current supply of skilled technicians can’t meet high demand
In recent years, the demand for skilled heavy equipment techs has surged for several reasons, including a flurry of new construction projects funded by the federal government’s Infrastructure Investment and Jobs Act (IIJA), as well as increased demand for domestic agricultural products.

“All of this building, growing and harvesting requires a large fleet of heavy equipment and technicians to service it,” said Grahsl. “At the same time, modern trucks and machinery are more complex than ever. Just like passenger vehicles, they’re loaded with new digital technologies that require highly trained technicians to diagnose and repair them.”

Given the rise in demand for diesel techs, it’s especially bad timing that the supply has been trending downward for years. Grahsl said one cause of this shortage has been the educational system’s persistent focus on directing all high school students toward four-year degrees. While well-intended, the “college-or-bust” mindset may have fed the stigma against trade careers (i.e., blue-collar jobs) and undermined the credibility of alternative education options like junior colleges and trade schools. Consequently, interest in roles like that of diesel technician has fallen off among students, and the flow of qualified candidates has slowed to a trickle.

Making matters worse, members of the Baby Boomer generation are now retiring en masse. Their ranks include many of the country’s most experienced technicians, who have no one to train as their replacements.

A great opportunity for students
On the bright side, the troubles facing the equipment industry are opening new doors of opportunity for young people exploring career options.

This comes as many high school students and their families are reconsidering the necessity and value of a four-year degree. According to College Board data, obtaining a degree from a four-year university now costs more than $46,000, on average, for in-state tuition and fees alone (excluding room and board, books and supplies).

“A college degree is no longer the guaranteed path to success that it once was,” said Grahsl. “Many students are finding that less expensive trade school programs better match their interests and have a better return on investment.”

For example, a certification program to become a diesel technician takes two years or less and typically costs less than $15,000. As of 2023, the median diesel technician salary was $58,970, but many experienced technicians employed by dealerships earn over $100,000 a year with full benefits. What’s more, the Bureau of Labor Statistics anticipates about 25,000 job openings in the field each year for the next decade.

Paving the way
The equipment industry is also doing its part to change the narrative around trade careers and grow the pipeline of qualified technicians. In fact, the Associated Equipment Distributors (AED) Foundation was created for the sole purpose of addressing the shortage of skilled diesel technicians within the equipment distribution industry.

The Foundation partners with high schools, colleges and technical schools to deliver high-quality programs that prepare students for technician jobs in the real world. They bring representatives from dealerships, manufacturers and colleges together to ensure the curriculum reflects the needs of today’s modern, high-tech equipment. The foundation also works with employers to give grads a clear path to job opportunities.

“Programs like these provide the bridge to gainful employment that many college grads wish they had,” said Grahsl, who sits on the AED Foundation board. “As they continue to fill the job pipeline with qualified technicians, equipment dealers and operators will be better off, too.”