Julian Scadden, CEO of Nexstar Network, on why the trades need a clear path from technician to business owner, not just a pitch about six figures.
Everyone says the trades pay well, carry no student debt and don't need a degree. Julian wants to know why kids still aren't lining up. His answer starts with his own story: early in his plumbing apprenticeship, a service manager pulled him aside and said everyone loved how clean he kept the truck and how well he did the paperwork, but he wasn't a good plumber. Julian never planned to be one anyway. He's a high school dropout who learned business through what he calls business apprenticeship, and he asks every employer listening a hard question: if a technician told you they wanted to start their own company, would you help them or fire them?
Julian is president and CEO of Nexstar Network, a member-owned organization that coaches independent plumbing, HVAC and electrical companies, and he was a Nexstar member himself before he led it. Recorded at Nexstar's conference, this conversation covers his Substack post on what comes after "become a plumber," what makes a good mentor, his open letter to the CEO of Lowe's, and why he doesn't think private equity will consolidate the trades.
This episode is for trades business owners who employ technicians, technicians wondering what comes next, and anyone funding or building workforce programs who wants careers to last past the first 90 days.
IN THIS EPISODE
(00:00) – Become a Plumber, and Then What? The Missing Path to Ownership: Julian explains why six figures and no debt aren't pulling kids in, and why the story of ownership gets left out.
(02:40) – From Technician to Owner: The Skills It Takes and Who Is Teaching Them: The service manager who told Julian he wasn't a good plumber, a contractor who built a $4 million business and lost it, and why employers have to start developing owners.
(06:00) – What Makes a Good Mentor: Mentor versus sponsor, balanced accountability, and how his first mentor Ed Coleman let him make a costly mistake without letting it sink the company.
(12:00) – The Letter to Lowe's: Data Center Dollars or Real Trades Careers? Julian and Andrew ask whether the money going into workforce programs is building careers or just filling seats, and why honest expectations about the work matter.
(17:50) – Private Equity and the Trades: Will Consolidation Win? Why Julian reads the trend lines differently than most, why airlines can consolidate and trades can't, and what happens when buyers don't know how to operate the business.
(23:00) – Who Should Join Nexstar Network and Where to Find Julian: Who is a good fit, why Nexstar is more of an accelerator than an incubator, and how to reach him.
Key Takeaways
Pay alone doesn't recruit people into the trades. If the pitch stops at six figures and no debt, it leaves out the career path, including the path to owning a business, that makes someone stay.
A mentor walks you through your own development, while a sponsor is in rooms you aren't and says your name. The best mentors hold balanced accountability and can tell the difference between you building muscle and you sinking.
Be honest about the job. Showing up at 6 a.m. when it's 20 degrees, or crawling into an attic with asbestos, is the reality, and ride-and-decide days let a new hire find out before they commit. Andrew ties this back to the first 90 days, which is where most new hires are won or lost.
Private equity can't take over an industry where anyone with technical skill and a license can start a competing business tomorrow. Julian expects it to stay a challenge but not to consolidate the trades.
About the Guest
Julian Scadden is president and CEO of Nexstar Network, a member-owned organization for independent plumbing, HVAC and electrical contractors. He was named CEO on November 1, 2020, after joining Nexstar as its first implementation coach, then leading training and events and serving as vice president of operations. He started in the trades as a plumbing apprentice and has more than two decades in home services.
Julian writes on Substack about the future of the trades, including an open letter to the CEO of Lowe's about workforce funding and the path to ownership. Nexstar's mission is to help the world's best tradespeople become the world's best business people, and it only works with independently owned companies, not investment-backed ones.
Keywords
skilled trades, path to business ownership, trades business owner, plumbing careers, become a plumber, technician to owner, mentorship in the trades, mentor vs sponsor, balanced accountability, private equity in the trades, data center workforce, Lowe's Foundation, trades careers for Gen Z, first 90 days, retention, HVAC business, electrician business, home services, Julian Scadden, Nexstar Network
RESOURCE LINKS
Julian Scadden on LinkedIn: https://www.linkedin.com/in/julianscadden
Nexstar Network Website: https://www.nexstarnetwork.com
An Open Letter to the CEO of Lowe's (Julian's Substack): https://julianscadden.substack.com/p/an-open-letter-to-the-ceo-of-lowes
SUPPORT THE SHOW
If you found value in this episode, please leave a review on Apple Podcasts and share it with someone who needs to hear it. Your support helps us keep telling the stories of the skilled trades.
My whole story is, I don't have a college degree, I'm actually a high school dropout.
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:Are we just getting them in to fulfill building a data center,
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:or are we building careers in the trades?
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:Julian Scatton, president CEO of Nextar Network.
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:The intent right now is to get the workforce to get the data centers built,
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:nothing beyond that, and that's a little troubling to me.
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:What do you see over the next five years?
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:What in your perspective, like what makes a good mentor?
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:Hi, I'm Andrew Brown.
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:You're listening to the Lost Star of the Skilled Trades podcast,
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:a show that shines the spotlight on careers in the skilled trades
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:that are high paying, honorable, rewarding, and fulfilling.
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:The trades are the backbone of the economy that keep us running,
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:and without them, our world would cease to exist.
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:Julian, everybody's talking about getting more people in the trades needed.
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:You kind of raised a different question on your sub stack,
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:become a plumber, and then what?
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:What did you mean by that?
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:Yeah, well, I think about, you know, there's this thing about
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:how come kids aren't coming running when we say
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:you're going to make 100,000 in your first year?
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:How come they're not lining up when we say there's no debt?
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:Well, I started to think about it, and I thought,
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:well, how come they're not lining up when we say there's no debt?
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:Well, I started to think about that, and, you know,
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:I didn't become a plumbing apprentice to become a plumber.
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:I just didn't, to be very direct.
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:It was an option that I had in my life at that time,
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:and I say, okay, well, we're not attracting people
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:to crawl into crawl spaces.
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:We're not attracting people to work in attics.
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:We're not attracting people to work with hazardous materials.
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:I wonder what that is, and what I was reflecting upon
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:in that sub stack is, what's the future?
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:Does someone want to be a technician their whole life,
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:and I love the plumbers that do,
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:and the HVAC technicians, and electricians,
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:and some people, they just, you know, they love schematics,
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:and they love doing the work, and I get that,
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:but I wonder how much of the message we're leaving on the table
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:when we don't talk about the path to ownership,
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:so that's what I was alluding to as we sit here at our conference,
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:you know, 500 businesses, and so many of these people
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:were technicians, and now they're great business owners,
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:and I wanted to start shining some light
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:on that side of the story.
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:Well, what does it take for somebody who's thinking about
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:maybe even going into ownership?
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:It's a different skill set.
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:These people, obviously, at the conference,
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:they started in the field.
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:What was it about, because not everybody's cut out
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:for entrepreneurship.
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:What is it that allows somebody to,
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:yeah, this thing is for them?
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:Yeah, I get it, and I guess the inverse was true with me.
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:I wasn't cut out for technical work.
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:I'll never forget early in my apprenticeship
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:being pulled to the side, not by my mentor,
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:but by the service manager himself,
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:and he just said, everyone you've ridden with
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:loves how clean you are, loves how clean
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:you keep the truck, loves how well you do the paperwork,
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:and all of these attributes that are really good attributes,
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:but you're not a good plumber.
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:You're not real good, man.
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:You're not good with your hands.
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:You know, the work has to be double-checked,
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:and you're taking longer,
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:and I'm taking that approach to tell you,
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:I think I was the inverse,
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:and I think there are skills and attributes
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:that you can start to take away from that,
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:and I do think you can be a great technician.
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:I've seen that, become a great owner,
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:but yeah, the path to entrepreneurship,
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:look, you're gonna have to be open to communication skills,
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:to detail, and to leading others,
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:and we have a prospect here at this event
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:who was just sharing with me,
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:he built a great business, you know,
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:for him as an individual,
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:exceeded about four million annual,
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:and that's impressive within a couple years.
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:He said, I lost it all,
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:and he said, now I'm rebuilding it.
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:He said, you know what I learned
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:is that I actually have to learn how to lead people,
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:not just tell them what to do.
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:So, you know, there's these learnings,
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:and you can read books on it,
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:and the truth is there are some people
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:who are just not built for it,
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:have no desire, no interest,
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:and I don't want to force you into it.
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:I know from my self-experience
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:and the members that we have here today,
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:and the people I've interacted with for,
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:oof, I guess four decades now,
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:there are some people who are really multi-talented,
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:and technically skilled,
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:and they can really become business owners
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:and world changers in the business world.
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:Are we actually setting them up
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:for that type of success?
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:Like, is that, I'm 19 years old, right?
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:I'm just thinking about working with my hands.
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:I can't even imagine owning my own business one day.
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:Are we setting these kids up for like a career
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:into potential entrepreneurship?
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:Here's exactly why I'm pulling out the soapbox.
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:I love that you used we.
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:Who the heck is we?
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:Well, the we is the everyone
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:who's employing these people.
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:Are you doing what that service manager did for me
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:and noticing the skills that the person has
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:or starting to cast a vision
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:or starting to build them?
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:I actually, within that same sub-stack,
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:I offered that, you know,
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:what if you had someone that worked for you
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:as a technician and they told you
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:they wanted to start their own business?
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:Would you help them if you knew that?
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:Or would you fire them?
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:And so I think the we need to start taking them
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:on internships in the same way that we have the,
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:you know, the journeyman to master apprentice.
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:That's true in business.
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:My whole story is I don't have a college degree.
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:I'm actually a high school dropout
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:and everything I have was learned through,
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:for lack of a better term, business apprenticeship.
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:And I think currently in general, by and large,
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:no, we are not doing that.
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:We, the current older business owners,
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:are looking at our exit.
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:We're not considering what's next.
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:And that's where I think we're at today.
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:And I want to change that narrative.
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:Now, how do we get them to be mentors?
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:Because obviously, like you said, they're retiring.
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:They're X amount of years away.
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:You know, how did we get them to pay it forward
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:and to help the younger generation?
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:Because not everybody is set out to be a mentor.
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:Some of the best technicians
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:do not make the best mentors.
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:So what in your perspective, like what makes a good mentor?
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:Yeah, I think I want to say two things here.
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:Number one, what makes a good mentor?
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:I want to answer the question that you asked.
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:You want to create legacy.
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:You see the best in someone
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:and they're willing to hold them accountable
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:to the gaps and to the winds
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:and you're invested in someone.
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:I heard something in corporate America once
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:in a conference I was attending
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:and being as that I didn't come up in corporate America,
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:it was interesting to me.
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:It talked about the difference
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:between a mentor and a sponsor,
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:a mentor and a sponsor.
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:Now, a sponsor is in rooms that you're not
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:and they're mentioning your name.
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:So they have a seat at a table
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:and they're literally sponsoring
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:your professional development.
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:Now, a mentor, though, is the person
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:that will walk you through
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:your own professional development.
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:So it's not focused on the business you're in
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:or the doors you're not behind.
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:They're literally just working on the you,
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:noticing where your gaps are,
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:where your skill sets can be either amplified
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:or enhanced.
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:So yeah, I think a good mentor
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:is really going to have that timeliness.
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:And also for me personally,
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:that high accountability,
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:that high accountability.
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:And the second thing I wanted to say
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:is to the folks that are waiting for a mentor
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:to be the reason why they succeed.
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:I can tell you it was common for me
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:and I hope it's not as common today.
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:But when you were out there in the field,
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:you know, I remember kind of just being the runner,
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:the gopher and even, you know,
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:yelled at things thrown at me.
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:But I wanted to learn it.
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:I wanted to learn it.
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:And nobody was going to get me out of that,
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:out of the field.
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:You know, it was a logic conversation
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:that took me out of the field
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:that had me thinking differently.
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:But as far, and I don't want this for anyone,
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:but I do want to offer this word with context,
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:abuse.
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:Because even professionally,
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:there have been lessons
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:that I've learned professionally
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:from things that I would never do.
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:The things, the ways I would never treat someone
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:the way that a leader treated me
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:or a manager treated me.
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:So for those of you that are,
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:don't wait for a mentor
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:to be the reason why you succeed also.
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:I want you to extract lessons in all you do.
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:Who was that impactful person for you
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:or your first mentor
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:that really kind of changed the game
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:or maybe your trajectory?
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:I want to shout him out
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:and he has passed.
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:And you know, all the best to him.
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:His name is Ed Coleman.
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:And the reason I giggle a little
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:is because he was a bit of both.
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:He was a bit of both.
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:He did things that I would never do
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:and never want to do
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:and talk to people in ways I never would.
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:But he was also super kind.
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:There was also this side to him
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:and you know, for him to take the care.
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:And we were in a growing business
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:that had just been acquired.
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:And you know, nobody's job was promised
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:the next day and the time he took.
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:And as I reflect back what he did
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:in that time to develop me
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:when everybody's job was on the line.
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:And then he sought me out later
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:and recruited me again.
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:And so I kind of had this very weird, bizarre,
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:I don't want to call it love hate,
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:but it was definitely push pull
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:where he could be very harsh in his language
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:and abusive at times and,
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:you know, beyond direct.
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:And there were other times where,
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:you know, we just kind of sit there quietly
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:and he would tell me the good things he saw me
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:and you know, where he wanted me to go.
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:But Ed Coleman, love him a bunch.
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:What makes a good mentor?
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:Like if you could pick two or three things,
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:like what are the characteristics
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:of a good mentor?
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:Oh yeah, for me,
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:definitely with someone in mind,
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:I do think about what maybe
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:I would describe this person
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:as balanced accountability,
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:balanced accountability,
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:very supportive,
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:made sure that I was equipped and empowered,
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:would give me enough room to navigate on my own,
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:but would make sure I wouldn't fall off a cliff
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:and would hold me to timelines,
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:would hold me to, you know,
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:the budget, the scope,
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:and all of those things
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:and the deliverables that he expected.
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:And I even remember in business,
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:because we worked together,
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:he let me make some pretty significant mistakes.
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:He would use the word,
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:it's not a salvation issue
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:is the way that he would say it.
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:And I use a term more like fall off a cliff.
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:And so he would let me go,
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:he would let me go
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:and I made some significant mistakes
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:that once I made them,
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:I was in the one that I think of the most
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:was a financial,
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:it was an investment where he let me
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:keep going a little longer than I should have,
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:I believe as a good steward of the organization,
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:but he knew it wouldn't be enough
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:that it would harm the organization.
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:And as I look back, I'm almost ashamed,
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:but I learned so much
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:and him letting me learn that.
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:And he was such a great steward of the organization
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:to know where those lines were.
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:So let me keep going.
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:And he knew I was, he knew I was good.
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:He knew my heart was good.
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:And I think he knew that was a lesson
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:I needed to learn.
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:So I guess it's one of those things
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:where a good mentor is going to know
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:when you're struggling and building muscle
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:versus when you're struggling and sinking.
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:And I think they put you
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:in those types of environments consecutively
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:and hopefully in a graduated state
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:because everything I learned from that person,
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:it was the next iteration.
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:I wasn't learning the same lessons over and over.
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:And I think as a mentor,
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:that's why he chose to take that time with me
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:as he saw me reflect, learn, apply and be proactive.
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:But I'll just call it balanced accountability
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:was never too emotional, was never too extreme
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:and would call me out if something was out
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:or I use the term a lot
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:and it's a common term, trust and verify.
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:And it was a lot of that.
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:He poured a lot into me and expected a lot of me
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:and made sure I was clear on that.
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:Yeah.
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:And I just want people to know
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:that it's not just one mentor in your life.
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:You can have multiple mentors.
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:This person could take you here.
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:This person could take you here
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:and so on and so on and so on.
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:So you can keep growing
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:because you hit different levels
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:and you need different help.
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:How hard is it to really look at yourself
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:and say, I needed to fix a couple of things?
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:Like if you were reflective
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:and you look at your career,
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:where did you need work?
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:I think at different phases,
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:it's different skills, different things.
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:Today, I have the privilege of sitting with you,
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:leading a member-owned organization.
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:And as the organization has grown,
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:the behaviors that served me well,
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:not only in my previous positions,
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:but in this same position,
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:as the organization has grown,
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:I'm needing to develop a new skill set
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:as the organization grows
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:or they'll need to find someone
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:to fill the title that I hold today
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:that can execute those skill sets.
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:So I do think it's, you know,
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:I don't want to get,
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:I'm not trying not to answer,
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:but I do want folks listening to consider
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:and not only is it situational,
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:but it's also incremental
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:of where you're at in your career.
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:And that's one thing I love about the trade so much
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:is to go from apprentice to journey to master.
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:And, you know, in an instant society,
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:there are so many lessons and muscle
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:and confidence that come from
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:just having to go through the suck.
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:Just got to sit down, just got to take it.
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:It ain't coming tomorrow.
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:It's not microwaved.
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:The suck is, it's not for everybody, right?
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:If you know that, you know,
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:it's going to take a handful of years
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:of going through whatever you have to go through.
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:Not everybody's cut out for that.
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:And you just need to understand
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:that it's not an overnight success.
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:And it takes time.
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:I want to shift over to just talk about
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:the letter to Lowe's
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:because I want to unpack that a little bit.
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:Lowe's is pumping in $250 million
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:over X amount of years.
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:I had a chance to actually sit with Betsy Conway,
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:the executive director of Lowe's Foundation.
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:They're spending a lot of money.
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:Meta is spending a lot of money.
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:The thing is, are we just getting them
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:in to fulfill building a data center
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:or are we building careers in the trades?
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:Well, you know, I really appreciate you calling that out.
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:My intent was to start a respectful conversation
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:towards ownership.
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:And I will be very direct with you
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:that part of my discomfort
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:in wanting to broaden the conversation
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:for the young ears and eyes
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:that are listening and looking at us
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:is I do have some,
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:and I think there's very clear data
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:that shows the intent right now
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:is to get the workforce to get the data centers built
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:and nothing beyond that.
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:And that's a little troubling to me.
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:That's concerning.
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:I'm not saying that that is Lowe's intent
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:and I'm not saying that that's their strategy
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:or their execution, but I am saying
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:they have a need
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:and I do see very deep pockets that can fill that need.
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:And we've even seen with Meta
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:the amount of money they're willing to throw
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:with the attrition that comes with it
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:and they don't care
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:because the retention rate
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:is all that they need to focus on.
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:And many of us don't have that level of dollar
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:that we can just release and lose
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:to have a very small retention rate.
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:So yeah, that's part of what my response was
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:in that letter
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:is I really want to open the conversation beyond
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:are we now throwing,
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:and this term is used a lot in business,
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:golden handcuffs almost.
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:Am I just going to throw so much money at you
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:that you feel restricted or cuffed to this outcome
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:versus painting a virtuous future
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:and a career that serves the communities,
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:that enhances their lives,
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:their family's lives,
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:and it can be something legacy building for our nation.
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:I mean, without the trades,
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:you know very well that it's not just comfort,
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:that's how we view it today,
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:but it is health and safety at its core.
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:And I feel like we're kind of skipping a step
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:and just once again,
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:talking about the money
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:or not talking about the holistic outcome
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:to the community.
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:Yeah, and there's a, you know,
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:attractiveness of the money.
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:You have the Mike Rose saying,
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:well, you can make $200,000 today.
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:Look, what about overtime?
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:Let's set the expectations correctly.
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:Like, you're showing up 6 a.m.,
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:it's 20 degrees down on a job site.
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:Like, be realistic about what you're going into
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:because if you aren't,
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:you're not having the expectations.
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:People will show up and they don't know why they're there
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:and then they end up leaving.
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:And that's why I think also the first 90 days
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:is the most important piece
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:and then keeping them past there
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:to build a career in the trades.
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:I don't know if these organizations
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:have a plan for that.
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:Maybe they do.
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:I'm not seeing it.
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:I'm not saying you're promoted.
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:You make me think of,
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:so very fortunate to have five children
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:and our true middle child,
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:Darrell Ethan.
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:Since he was a kid,
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:played with little cars,
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:played with Hot Wheels.
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:But then as he got older,
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:we even bought him,
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:it's like a plastic engine that you can build
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:because he just loved cars
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:and then he built that little engine
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:and he loved it.
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:And he would tell us all the time,
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:you know, he's going to be a mechanic.
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:He wants to work on cars.
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:That's all he wants to do.
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:Well, I've had a saying that
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:I said in different ways,
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:but it really landed with him.
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:Son, I love you.
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:That's great.
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:Until you bang your knuckles,
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:we'll find out what you're going to be professionally.
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:And, you know, with a mechanic,
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:mechanics understand what that means
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:and us in the trades know what that means.
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:And that's what I hear you saying
486
:when we say,
487
:what is the real picture?
488
:What does it really look like?
489
:I love when I hear different businesses
490
:say they have four aspiring technicians
491
:ride and decide.
492
:I like that language.
493
:Show up when it's 40 below.
494
:This house doesn't have heat.
495
:It's a hundred-year-old boiler.
496
:We got to crawl into it.
497
:It's best those covered at 100,000,
498
:you know, that kid's going to start saying,
499
:I can live off of 50,000 in Chick-fil-A.
500
:You know, I want to serve the,
501
:you know, serve some chicken sandwiches
502
:and be a manager there.
503
:You're right.
504
:I really like the way you framed that.
505
:I don't know that we're painting
506
:that picture clear enough.
507
:And that's my fear.
508
:We tantalize you with money to join.
509
:And then when you find out
510
:the reality of the work,
511
:it's not something you're at all interested in.
512
:So what's the framing
513
:that we're putting out there
514
:is really important.
515
:And consider it.
516
:I like the way you did that.
517
:Well, you travel the country
518
:and you meet with different
519
:next door members, right?
520
:Each company is struggling
521
:with different things.
522
:Like how much of this
523
:is the employer problem
524
:at the end of the day?
525
:I love earlier you said,
526
:what are we doing about this?
527
:They're the we.
528
:They are the we.
529
:You know, we're very fortunate
530
:in the organization that I represent,
531
:that we talk a lot about coaching,
532
:but we don't just talk
533
:about your financials.
534
:We talk about talent.
535
:We talk about the technical aspects as well.
536
:Yeah, I just don't see it.
537
:I don't see it enough
538
:that these,
539
:the owners of the businesses,
540
:the managers of the businesses,
541
:the leaders of the businesses,
542
:we're in a very challenging
543
:industry right now
544
:where there are factors of businesses
545
:that are scaling money
546
:to grab market share
547
:and independent businesses
548
:are concerned about
549
:where their next technician
550
:will come from.
551
:They're concerned about
552
:their profitability
553
:as they watch these larger,
554
:these larger businesses
555
:enter their markets
556
:and can leverage buying equipment,
557
:can leverage buying marketing.
558
:They're really trying to flex
559
:and take over the marketplace.
560
:And I think that they are,
561
:you know, they may be reacting
562
:from a stress response
563
:and not thinking long term about
564
:how do I pour into these employees
565
:that I'm attracting?
566
:How am I pouring into the people
567
:that I'm wanting to retain?
568
:And what's the reason?
569
:And it's a perfect recipe
570
:for an unsavory meal,
571
:meaning that as all these stresses
572
:and tensions rise
573
:on the business owner
574
:that's around my age
575
:and these folks are looking to exit,
576
:well, it's probably easier
577
:to just get a multiple
578
:for the business and walk away.
579
:And yeah, it's just a recipe right now
580
:that is, you know,
581
:it's bubbling, it's brewing
582
:and it's simmering.
583
:Yeah, I mean,
584
:you have private equity coming in
585
:and knocking on people's doors
586
:of wanting to take over the business.
587
:What do you see
588
:over the next five years
589
:if they really start to gobble up
590
:more of these small businesses?
591
:Like what happens at the end of the day
592
:in the trades?
593
:It'll be interesting to watch.
594
:I'll tell you what I'm seeing now
595
:and we just had the opportunity
596
:to sit with an economist
597
:from ITR economics
598
:and I do call them out by name.
599
:I would encourage folks
600
:to consider economics.
601
:I have a bad joke
602
:and guess what?
603
:You're going to get it
604
:when folks ask either my religion
605
:or my politics.
606
:I say none of that.
607
:I'm an economist.
608
:And I don't mean that
609
:in the financial sense,
610
:what economy teaches you
611
:is there is no good or bad.
612
:There's only trade-offs.
613
:That's it.
614
:If you're going to do one thing,
615
:you cannot do another.
616
:And so, you know,
617
:as I think about that,
618
:you know, I think we really have to focus
619
:on where are we spending our time?
620
:What are we focused on?
621
:Where are we putting in our endeavors?
622
:And now to tie that back
623
:to private equity though,
624
:I think about that
625
:and what I'm seeing today.
626
:So the economics give us trend lines
627
:to predict the future
628
:and they always say
629
:have at least five different indices
630
:you're watching
631
:before you believe any one of them.
632
:And if three of them are trending,
633
:that's what you believe.
634
:I'll tell you the trend
635
:I'm seeing right now.
636
:I'm already watching private equity
637
:because of the way
638
:that it was handled most recently.
639
:Party releasing assets,
640
:dissolving assets,
641
:because things were being purchased
642
:at a rate that didn't make sense.
643
:These were being purchased
644
:without enough operators.
645
:If we don't have enough technicians,
646
:I can promise you right now,
647
:we don't have enough operators
648
:that know how to run this business.
649
:And that's part of their issue
650
:where these financially backed
651
:investment businesses
652
:do not know the industry or the trade.
653
:Now, are they learning quickly
654
:and professionalizing it
655
:and scaling it?
656
:Yes, that's true.
657
:But you need operators.
658
:I want to be very clear in that term.
659
:And what that means is
660
:not only the leadership of the people,
661
:but how to run a business like this
662
:and how to run it
663
:so it sustains.
664
:I'm not running it
665
:for a three year horizon to turn it.
666
:And when you do that,
667
:the business starts to deteriorate.
668
:And what I've seen is
669
:no one wants to be the last person
670
:holding that asset.
671
:They just cut cost, turn,
672
:cut cost, turn, cut cost, turn.
673
:What I'm starting to see now already,
674
:as I mentioned,
675
:these assets are dissolving
676
:or going away or devalued.
677
:I'm watching many, many people
678
:leave those types of organizations
679
:and starting again, starting over,
680
:starting independent businesses
681
:or leaving as employees
682
:and wanting to consult
683
:or start their own businesses.
684
:So I don't know.
685
:My trend lines tell me right now
686
:that they're not going to go.
687
:I've heard so much.
688
:And this was around 2020, 2021
689
:when the multiples were ridiculous
690
:and folks were saying,
691
:Julian, I think your industry
692
:is going to be consolidated
693
:like airlines and waste management.
694
:I said, I don't think so.
695
:I don't think so.
696
:Because someone can't go out
697
:and buy their own plane
698
:and start their own airline.
699
:Someone's not going to go purchase a truck
700
:and start their own waste management.
701
:But here every day,
702
:everyone listening to this podcast
703
:right now that has
704
:any technical proficiency
705
:and doggone sure a license,
706
:you can start your business tomorrow.
707
:And I'm going to encourage you
708
:to start having those conversations
709
:and thinking about it.
710
:That's why I believe that
711
:no one force will consolidate us.
712
:And I don't believe
713
:that private equity will consume.
714
:Will it be a challenge?
715
:And will it be here?
716
:I think from here on out, yes, I do.
717
:And what folks don't realize
718
:is it was around for some time,
719
:really well done by a few groups.
720
:But in any business
721
:where you have hubris and greed,
722
:that's your downfall.
723
:So I think the ones
724
:that are good operators,
725
:long-term vision, long-term decisions,
726
:or at least in some form,
727
:as long as people like money,
728
:they'll be around.
729
:But I don't know
730
:that it's going to be as present
731
:or as tense as it is now.
732
:Yeah.
733
:And I've seen companies change
734
:that were taken over by private equity.
735
:The cultures changed,
736
:the people changed.
737
:A lot of people left
738
:and it was all about margin, margins, margins.
739
:You know, it wasn't necessarily
740
:about the people.
741
:And I think if you want
742
:to build a good business,
743
:put a lot of stock in your people,
744
:get the right people on the bus
745
:and build your business.
746
:You know what that makes me think of
747
:is I remember,
748
:now this was early on
749
:and I'll own that I'm outdated,
750
:but I remember early on in my career
751
:when SharkBite fittings came out.
752
:So as a plumber,
753
:you know, we were very proud
754
:to solder and connect and copper.
755
:And then SharkBite fittings,
756
:these little clamp down fittings
757
:that came out,
758
:when they first came out,
759
:they were cost effective.
760
:It was a very quick solution.
761
:But at that time,
762
:they weren't the best solution
763
:in all cases.
764
:But I was watching similarly,
765
:businesses push for that.
766
:You were in and out of a job faster.
767
:The materials were lower.
768
:And so that's what I think about
769
:when I hear you talk about,
770
:you know, we're chasing margin
771
:all the time.
772
:That leak's going to come back.
773
:And here's the dangerous thing.
774
:I know I'm speaking about plumbing.
775
:I love my other trades.
776
:I love you all.
777
:I promise I do.
778
:Carpenters, all of you.
779
:I love you, painters.
780
:I love all of you guys on the roof.
781
:I'll never do that.
782
:I could never do that.
783
:But here's what I'm saying.
784
:The thing with plumbing,
785
:and I explain this to people
786
:all the time.
787
:Number one,
788
:the work that we do is behind the walls.
789
:Nobody gets to see our craftsmanship.
790
:But with plumbing,
791
:when a leak happens,
792
:it usually runs down the pipe
793
:and the place where you see it
794
:by the time you see it,
795
:number one,
796
:it's probably become mold,
797
:become dangerous and a bigger issue.
798
:Number two,
799
:you can't even find the origin of it
800
:or the source
801
:because it'll run along that copper pipe
802
:and then it finally drips
803
:where a turn or a drop is.
804
:That doesn't mean that's the source
805
:of the problem.
806
:And that's where I'm tying back
807
:to any business that's looking
808
:for quick turnaround,
809
:quick solutions.
810
:They're not thinking long term.
811
:That drip is going somewhere
812
:and someone's going to pay someday.
813
:And that's why I see
814
:some of these businesses
815
:not wanting to be the last one
816
:holding the asset.
817
:Who's a good candidate
818
:to join the Nexstar Network?
819
:Like if I'm thinking
820
:I'm listening to this right now
821
:and I have a struggling business,
822
:what do I do?
823
:Yeah.
824
:Yeah.
825
:Well, first,
826
:join some type of best practice group.
827
:OK, so Nexstar is great.
828
:I love it.
829
:I was a member
830
:and I get to lead the organization today
831
:and very biased towards that.
832
:But I think the first thing is
833
:this kind of goes back to mentorship,
834
:but also say it's networking community.
835
:So when you join any group,
836
:you're going to be around other people
837
:that are going through
838
:the struggles you're with.
839
:You're going through,
840
:hopefully, a coaching perspective
841
:or a consultative perspective
842
:that's a little separate from you
843
:that can stay objective.
844
:Because, look,
845
:I still have a coach to this day.
846
:I can coach people all day long
847
:and then I can have a conversation
848
:with my coach and not see things
849
:that are right in front of me as well.
850
:And I do appreciate the tip.
851
:So I will dive into that.
852
:I'll tell you,
853
:if you're considering Nexstar Network,
854
:please just reach out.
855
:I'll start with that.
856
:I will tell you that
857
:we're more of an accelerator
858
:than an incubator.
859
:And what I mean by that
860
:is if your annual revenues
861
:in the trades are below,
862
:you know, 1 million, 2 million,
863
:you're not going to really
864
:have the time to implement
865
:what we're cooking up for you.
866
:So, you know,
867
:build the organization a little bit more.
868
:And the other thing I'll say,
869
:I wonder if there will be a day
870
:where, you know,
871
:there are members,
872
:I'm seeing a little bit of it,
873
:once they pass a certain
874
:revenue threshold per location,
875
:that they might graduate.
876
:And I'm OK with that.
877
:I'm OK with that.
878
:Because what they do
879
:is they start to take,
880
:you know,
881
:they have their internal coaching,
882
:they have their internal training.
883
:There's things at scale
884
:that they just need to do.
885
:And I think that's
886
:a wise business decision.
887
:And then the other thing is
888
:that you must be independently owned.
889
:We do not bring on anyone
890
:that is investment backed
891
:or venture capital backed.
892
:And what we want to do
893
:and our mission as written
894
:and what we shall do
895
:is honor our mission as written,
896
:which is we will help
897
:the world's best tradespeople
898
:become the world's
899
:best business people.
900
:I love that.
901
:If people want to find out
902
:more information or join Nextar,
903
:where do they go?
904
:Yep, nextarnetwork.com.
905
:Find us on the socials,
906
:find us on the webs,
907
:find me in the street.
908
:I can't wait to tell you
909
:more about it.
910
:Julian, you've got
911
:an interesting perspective
912
:on the industry.
913
:Thank you so much
914
:for what you're doing here.
915
:And thanks so much
916
:for being on the show.
917
:I want to take a moment
918
:to give you your flowers,
919
:what you're doing right now,
920
:the lost art of the trades
921
:and, you know, shop class,
922
:the soul craft is a great book.
923
:And I think about the work you do.
924
:And I tie those things together.
925
:I appreciate you bringing ears
926
:to the voices that are
927
:not well heard right now
928
:in the way that you do it,
929
:the depth touch.
930
:And yet the loud whisper
931
:that you're using
932
:and when I use that term,
933
:what I mean is that
934
:you do it professionally.
935
:Thank you for that.
936
:Respectfully.
937
:But you're making sure
938
:it's getting into
939
:the right audiences.
940
:And as I say that,
941
:I'll say one more thing.
942
:And I see you
943
:being a great representative
944
:of the thing
945
:that I wish we had more of.
946
:And I think it's minimizing.
947
:But people used to say things like
948
:they would say a cuss word
949
:or they would kind of
950
:be really gruff.
951
:They go, oh, it's OK.
952
:We're from the trades.
953
:And to have that inference
954
:that we're not professional
955
:or can't be professional.
956
:And my point in spinning
957
:all of that up is to say
958
:the way you're doing things today,
959
:Mr. Brown,
960
:you are showing people
961
:an aspirational view
962
:of the trades
963
:and the craft that we hold.
964
:And I really appreciate you for that.
965
:We don't have to,
966
:you know, say naughty jokes
967
:or be dirty to try to be funny.
968
:These are professionals.
969
:And I really see you
970
:bringing that to your podcast.
971
:And I just want to honor you
972
:and thank you for that.
973
:That means a lot.
974
:That means lots of passion for me.
975
:I see you mean a lot.
976
:Yes, sir.
977
:Julian, thanks so much
978
:for being on the show today.
979
:Anytime.
980
:Thank you so much for the platform.
981
:Thank you, sir.
982
:Thanks for listening
983
:to The Lost Art
984
:of the Skilled Trades.
985
:Visit us at andrewbrown.net
986
:for more resources and tips.
987
:Join us next time
988
:for real stories
989
:and meaningful initiatives
990
:as we celebrate our men
991
:and women in the skilled trades
992
:and shape the future together.