As AI wipes out white-collar jobs, one Alabama high school and Toyota are training students for roles that pay $40 an hour and can't be automated

The United States is facing a significant shortage of skilled tradesworkers, prompting a high school in Huntsville, Alabama, to take action to cultivate the next generation of talent—one student at a time.

The Huntsville Center for Technology (HCT) is a newly established $40 million facility where 700 students spend part of their day away from traditional high school curriculum to receive training aligned with industry standards. The facility will produce its first graduating class this spring, offering a unique "Inditech" program that is a result of a strategic partnership with Toyota Alabama, bolstered by a $1 million investment from Toyota's philanthropic foundation.

Principal Zac Mcwhorter explained to Fortune that the initiative was born out of a clear identification of local employment needs. Toyota's plant in Huntsville is among their largest facilities in the U.S., responsible for assembling nearly half of the company’s engines in North America.

"We asked what specific program or pathway you need, and we can address it," Mcwhorter noted. "They indicated a demand for more industrial maintenance workers. Thus, the Inditech program was developed in collaboration with Toyota Alabama."

The Looming Skilled Trades Shortage

An alarming number of skilled tradesworkers are nearing retirement age, and estimates suggest that the U.S. faces potential losses of $1 trillion annually due to this shortage. According to data from the National Association of Manufacturers, approximately 1.9 million manufacturing workers will be needed by 2033.

This urgency is exacerbated by the increasing demand for skilled electricians and construction workers as data centers expand their infrastructure for AI technology.

Ford CEO Jim Farley has mentioned that the U.S. currently lacks over a million workers in what he describes as the "essential economy," which encompasses blue-collar fields responsible for moving, building, or repairing. Specifically, he cited shortages of 600,000 factory workers and 500,000 construction workers.

Conversely, the supply of college-educated white-collar workers exceeds demand in the current market. The encroachment of AI automation threatens numerous roles that young graduates traditionally seek. As a result, many members of Generation Z are reassessing their career trajectories, considering gig or freelance opportunities, and opting for vocational training in skilled trades.

How to Fill a Critical Talent Shortage

HCT is not alone in its efforts to address the shortage of skilled tradespeople. Other companies, such as Lowe's and BlackRock, have allocated resources to facilitate worker training in skilled labor professions. Furthermore, initiatives like those led by Dirty Jobs host Mike Rowe, who is distributing $10 million in scholarships, aim to inspire youth to pursue careers in the skilled trades.

Compensation for skilled tradesworkers is on the rise, particularly as data center developers strive to attract qualified candidates. According to Skillit, an AI-driven hiring platform catering to construction professionals, data center construction workers can expect an average annual salary of approximately $81,800.

While HCT's Inditech program focuses on preparing students for industrial maintenance, instructor Jack Crowley emphasized that the potential earnings are significant regardless of the specific career path. He noted that pursuing these positions typically requires only a two-year degree coupled with a few years of experience, which can lead to substantial income early in a career.

"You could be earning over $40 an hour with minimal to no student debt, making it an attractive income proposition at an early stage," Crowley commented.

A Broader Strategy: ASCTE and Defense Sector Training

Just a few miles from HCT lies the Alabama School of Cyber Technology and Engineering (ASCTE), a magnet high school dedicated to integrating cyber technology and engineering across various academic disciplines.

ASCTE has forged its own public-private partnerships with local corporations, including Deloitte, Airbus, and Raytheon. Raytheon was the initial partner to launch the school's internship program, which allows students to engage in hands-on work experience for four days a week during their senior year, tackling projects that range from research to coding.

ASCTE Executive Director Matt Massey shared with Fortune that this program extends beyond a typical internship experience. The goal is to equip students for careers at companies like Raytheon and to cultivate a skill set that is well-suited for an AI-driven job market.

"We're striving to prepare them for careers and positions that may not even exist yet," he remarked.

Increased training in defense technology has become more pressing, particularly in light of rising needs for critical weapon stockpiles, such as Tomahawks, Patriots, and other munitions used recently by the U.S. and Israel in the conflict involving Iran. Failure to address this issue could leave the nation vulnerable.

"These practical experiences enhance essential skills such as systems thinking, creativity, and collaboration, all while contributing to the development of a robust aerospace and defense talent pipeline," noted Nate Jones, Raytheon Huntsville site executive, in communication with Fortune.

The Real Draw: Financial Security

Although participation in these programs does not guarantee employment with partnering companies post-graduation, providing students with practical experience is crucial for preparing them for dynamic industries that offer lucrative salaries.

For many students, the allure of a tangible financial future is a primary motivator for joining these programs.

"When they learned about a 21- or 22-year-old team member who had recently married, purchased a home, owned a car, and had a boat, you could see their excitement about the possibilities this career path could offer," shared Sydney Martin, a corporate communications analyst and leader in the Inditech program at Toyota Alabama.