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America's new millionaire class: Plumbers and HVAC entrepreneurs

(www.wsj.com)
185 points hhs | 8 comments | 13 Oct 24 15:35 UTC | HN request time: 0.203s | source | bottom
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jacknews ◴[13 Oct 24 16:36 UTC] No.41829377[source]▶
"The wave of investment is minting a new class of millionaires across the country, one that small-business owners say is helping add more shine to working with a tool belt."

How naive. PE does not enter a market in order to make existing workers into millionaires, but to create a monopoly/monopsony where they can gouge both customers and employees, to extract maximum profit. Quite often, the goal is not even to run the market sustainably, but just to produce optical profits for a quick resale.

A few local contractors may get bought out and become millionaires, but everyone else will be impoverished.

We can probably even predict some next steps. They will recommend and lobby for various 'safety' regulations or certifications that would be difficult for smaller shops to meet, and then pressure commercial landlords, housing associations, etc to require those certifications.

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halfcat ◴[13 Oct 24 16:40 UTC] No.41829426[source]▶
Exactly. Eventually regulatory capture begins and eventually enshittification.

No one can start a new plumbing/HVAC small business. Your only option is to go work for Walmart (metaphorically speaking).

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1. SoftTalker ◴[13 Oct 24 16:43 UTC] No.41829448[source]▶
> No one can start a new plumbing/HVAC small business.

This isn't true at all, I know several people who have done it.

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2. khrbrt ◴[13 Oct 24 16:49 UTC] No.41829501[source]▶
They meant after consolidations.
3. raziel2701 ◴[13 Oct 24 16:51 UTC] No.41829512[source]▶
I understood OP's comment as once PE comes in, monopolizes and regulatory captures, then no one can start a new plumbing/HVAC small business.
replies(1): >>41830346 #
4. halfcat ◴[13 Oct 24 16:54 UTC] No.41829532[source]▶
Not unless you know time travelers. It’s a statement about the future, and how this kind of industry consolidation tends toward regulatory capture.

So in 5 years or so, we suddenly see laws everywhere that require expensive certifications, new kinds of insurances, audit requirements, and so on in the name of “safety” no one can start a new small business in those industries without a team of consultants, lawyers, big auditing firms, and so forth.

5. Aradalf ◴[13 Oct 24 16:57 UTC] No.41829560[source]▶
Are they also as bad at reading as you?
6. Kon-Peki ◴[13 Oct 24 18:34 UTC] No.41830346[source]▶
Yeah, I think that’s the sentiment. I do wonder how true it can be, however.

I wonder how it is in various states, but at least where I live the actual plumbers get licensed, not the plumbing company. So what can they do to stop it? NDAs? Non-Competes? The state also takes a dim view on such things until you are paying someone a significant amount of W-2 money.

SEO? Brand recognition?

Well anyway, a few months ago I shared a table at a restaurant with someone that worked at a family office, and was buying up landscaping companies. I asked some questions in a polite and friendly manner; nothing too pointed or invasive. But came away with the idea that there is a lot of money out there looking for something to do, and not a lot of good ideas.

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7. sokoloff ◴[13 Oct 24 21:12 UTC] No.41831642{3}[source]▶
Creating ever more onerous/costly/time-consuming requirements for lengthy apprenticeships or other licensing gatekeeping is one common way to restrict supply, all while appearing to be serving the public interest.
8. TrueSlacker0 ◴[13 Oct 24 23:33 UTC] No.41832700{3}[source]▶
"where I live the actual plumbers get licensed, not the plumbing company."

Which then leads to plumbing shops were the licensed plumber doesn't even work there and just rents out the license to the business so it can operate. Plumbing certs are a complete pyramid scheme.