The U.S. labor market is heading toward a blue-collar resurgence. Projections show that nearly 17 million new blue-collar jobs will be added by 2032, highlighting a pressing need for investment and modernization in this space. These numbers signal a structural shift in how America builds, maintains, and powers its communities. Charles Covey, Founder of Valorem Capital, is at the center of that shift. Having begun framing houses at 16, he has spent nearly 30 years in blue-collar industries, first as a worker, then a business owner, and now as an acquirer and innovator. His vision blends an appreciation for the grit of skilled labor with a tech-oriented mindset, applying capital and systems to scale traditional businesses in a way few have attempted.
“I have such a special emotional tie to the blue-collar space,” Covey shares. “I started working there as a teenager, and most of my career has been spent building and running companies in that sector. That history gives me a real connection with how these businesses operate.” Covey sees blue-collar businesses as foundational, and undervalued, pillars of society. With the projected surge in blue-collar employment, his strategy with Valorem’s Blue Collar Business Fund and Secured Land Fund promises to be central to America’s next growth chapter.
Why Blue-Collar Work Matters
Blue-collar work generally refers to occupations rooted in skilled trades or manual labor, often performed outside traditional office settings and requiring hands-on expertise. While often overlooked in the public spotlight, these trades are indispensable. “If the trash doesn’t go to the dump, we’ve got a big problem. If no one can fix a car or build houses, how could our American survive?” he said. These companies may not scale at the lightning pace of tech startups but they provide the essential services that underpin daily life. The challenge, Covey says, is that interest in the sector has waned. While venture capital pours into AI and digital platforms, the businesses that ensure society functions are left behind. For Covey, this gap is precisely why the Blue Collar Business Fund at Valorem Capital exists: to invest in companies with staying power, whose products and services cannot easily be replaced by automation or multinational corporations. “These are very important businesses to the way that we live our lives,” he adds. “They deserve focus and innovation.”
Scaling with Technology and People
While blue-collar enterprises may be unlikely to achieve 100x growth in a year like a tech unicorn, scaling is possible. “I’ve taken companies from 1 employee to 100 or 150 employees in three or four years,” he says. “That’s breakneck speed for this space, and technology is the reason it’s possible.” His playbook for success emphasizes three principles. First, invest in people. “It’s a people business at its core. If you take care of your people, they will take care of you,” he says, crediting the blue-collar sector with producing some of the hardest-working, most dedicated employees he has ever encountered. Second, integrate technology. Covey often sees businesses with strong revenues but little digital infrastructure. Something as simple as a website, an automated training program, or scalable web based systems can unlock untapped potential. Finally, he pushes for innovation and efficiency, recounting an acquisition story of a traditional owner who preferred to meet at the cafe with chicken fried steak and sweet tea, discussing family and fishing before talking business. “It’s a beautiful mindset,” Covey says, “but their company had been operating the same way for over 40 years. You see so much potential if you just think a little differently.”
The Role of AI in the Next Generation of Blue-Collar Companies
Artificial intelligence stands to play an important role in modernizing blue-collar businesses, though its adoption will look different from other industries. “AI is going to change the world, but in this space it will be slower,” he says. “You still need a human and a piece of equipment to get the work done. AI can still make those tasks more efficient.” He has observed that resistance often comes from management rather than frontline workers. “The team in the field usually welcomes tools that make their jobs easier. It’s leadership that sometimes puts up the walls.”
Beyond operations, AI is already proving transformative in back-office functions such as payroll, bookkeeping, estimating and document review. Most importantly, he insists, it can deliver the visibility that many blue-collar owners have historically lacked. “When you ask some founders how their business is doing, they’ll say, ‘Well, more money’s coming in than going out.’ That’s not good visibility,” he says. “One example is through AI powered dashboards we can track margins, profitability, and up to the minute performance measures in ways that are extremely valuable for high quality decision making.”
Building Wealth and Community
Through Valorem Capital, Covey leads two funds with complementary missions: the Blue Collar Business Fund, which acquires and scales companies serving essential needs, and the Secured Land Fund, which develops rental housing projects in Texas growth markets. Both seek to generate strong returns while addressing pressing societal challenges such as housing affordability and workforce stability. For Covey, this work is about more than capital. It is about preserving the legacy of blue-collar trades, ensuring communities thrive, and building generational wealth for investors and workers alike. “Creating with purpose, through innovative solutions,” he says, remains his core mission.
To learn more about Charles Covey and his work at Valorem Capital, follow him on social media on Facebook, Instagram, LinkedIn, and X (formerly Twitter), or visit his website.
