Skillit raises $5.1M seed round to fix construction labor shortage
Skillit raised a $5.1 million seed round for its LinkedIn-like service that connects labor-starved construction contractors with vetted workers, including for solar and wind projects.
Why it matters: A severe shortage in skilled labor is forcing developers to delay new renewable energy projects, industry sources tell Axios.
- Skillit says its service, by connecting contractors with a vetted labor pool, can help rapidly fill that gap.
What's happening: Building Ventures led the round.
- MetaProp, Holt Ventures, Great North Ventures, 1Sharpe Ventures and Takeoff Capital participated.
How it works: Skillit says it vets workers with trade-specific assessments and provides employers with insights on compensation, training and retention.
State of play: The bulk of the solar and wind workforce is in the field.
- About 89% of solar companies last fall said they simply couldn't find enough of those workers.
- The wind industry is on track to experience a shortfall as soon as 2025.
Meanwhile: Incentives in the Inflation Reduction Act are expected to add roughly 1 million new jobs a year in low-carbon energy — if companies can find skilled candidates to hire.
- Organizations such as ClimateDraft.org are also working to fill the talent pipeline by connecting companies with candidates.
Fun fact: Skillit founder Fraser Patterson is a former carpenter and general contractor.