When most people think about America’s millionaire class, images of Wall Street bankers, Silicon Valley tech founders, or real estate moguls often come to mind.
But a quieter, less glamorous group is rapidly joining their ranks: skilled tradespeople and small business owners in industries like plumbing, HVAC (heating, ventilation, and air conditioning), and electrical services.
The Private Equity Factor
Over the past decade, private equity firms have turned their attention to the skilled trades sector. Facing a national shortage of qualified tradespeople and rising demand for home services, investors see local plumbing and HVAC businesses as reliable, cash-generating assets.
The strategy is simple: buy out family-owned companies, consolidate them under larger regional or national service groups, and scale through marketing, technology, and logistics.
For many small business owners who have spent decades building a customer base, this wave of acquisitions has created once-in-a-lifetime opportunities to sell their companies for millions of dollars.
Why Skilled Trades Are in Demand
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Labor shortages: The average age of a plumber in the U.S. is about 42, and fewer young people are entering the trades. That scarcity increases the value of businesses with established workforces.
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Recession resilience: Unlike luxury sectors, plumbing and HVAC services are necessities. Homeowners need functioning water systems and climate control regardless of economic conditions.
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Recurring revenue: Many firms now use subscription or maintenance plans, creating steady cash flow that investors prize.
A Shift in America’s Millionaire Profile
According to wealth reports from UBS and Capgemini, the U.S. added hundreds of thousands of new millionaires in 2024, largely thanks to stock market and real estate gains.
But another layer of the millionaire boom is less about asset inflation and more about strategic exits from businesses that keep America’s homes and offices running.
This marks a departure from the stereotype of wealth creation in America. Increasingly, entrepreneurs who spent their careers running service vans and local offices are achieving financial outcomes similar to those of tech entrepreneurs.
Investors Join the Story
Alongside tradespeople, investors are reaping rewards by backing this consolidation trend.
Private equity groups, regional roll-ups, and even individual investors pooling resources are reshaping the home services sector into a lucrative asset class.
The result: both business sellers and financial backers are emerging as unexpected winners of America’s shifting wealth landscape.
The Bigger Picture
This movement underscores a larger truth: the path to wealth in the U.S. is diversifying.
While tech and finance still dominate headlines, it is the plumbers, HVAC owners, and other skilled trade entrepreneurs—partnered with investors—who are proving that essential services can create extraordinary wealth.
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