The Economics of Everyday Things: Episode 97 – Elevators

Host: Zachary Crockett
Release Date: June 23, 2025

Introduction to Elevators and Their Ubiquity

In Episode 97 of "The Economics of Everyday Things," host Zachary Crockett delves into the often-overlooked world of elevators. He begins by highlighting the commonplace nature of elevators and how their seamless operation becomes invisible to most users. As Crockett notes, "If your elevator works well, it's easy to take it for granted" (01:09, emphasizing the critical yet unnoticed role elevators play in daily urban life.

The Evolution and Industrial Significance of Elevators

Crockett provides a historical perspective, tracing elevators back to ancient Rome where primitive systems were used to transport animals for gladiatorial games. He explains the transformative impact of Elijah Graves Otis’s invention in the 1850s, which introduced a safety brake to prevent catastrophic falls, fundamentally changing city skylines by enabling the construction of taller buildings. Brian O'Connell, Otis Elevator's Senior Vice President of the Eastern US, remarks, "The elevator was a key driver in being able to continue to have more densely populated areas and expand that construction higher and higher" (03:59). This innovation not only enhanced safety but also fueled urbanization and the rise of skyscrapers.

Modern Elevator Industry and Technical Advancements

Today, Otis stands as the largest elevator company globally, responsible for approximately 20% of all new elevators installed in 2023 and servicing over two million existing units worldwide. O'Connell proudly mentions, "Here one of our marquee buildings is of course the Empire State Building" (04:31), illustrating the company's significant footprint in iconic structures.

Crockett distinguishes between the two primary types of elevators: hydraulic and traction. Hydraulic elevators use pressurized fluids and pistons to ascend, while traction elevators rely on ropes or cables. He explains the intricate process of elevator installation, from architectural planning to rigorous safety testing. O'Connell adds, "Once it's completed, you'll go into contract negotiation, and then construction starts" (06:06), detailing the collaborative effort between manufacturers and builders.

Economic Impact of Elevator Installation and Maintenance

The economic aspects of elevator installation are scrutinized through insights from Stephen Smith, Executive Director of the Center for Building in North America. He points out, "An elevator in the United States costs three to four times as much to install as an elevator in Switzerland for a similarly sized building" (07:28). This significant cost difference is attributed to stringent U.S. building codes and safety regulations, which necessitate larger elevator cabins and more comprehensive safety features. Smith explains, "A new elevator to install in, let's say a six-story building in the United States would be between $150,000 and $200,000" (07:39), highlighting the financial barriers that can limit the number of elevators, especially in smaller buildings.

Maintenance and modernization also play a critical role in the industry's economics. Smith emphasizes, "Most of the money spent on elevators is actually not in installing new elevators. It's in service, maintenance, and what are called modernizations" (08:28). Regular maintenance contracts and periodic upgrades are essential for ensuring elevator safety and functionality, representing a substantial ongoing investment for building owners.

Safety, Maintenance, and the Role of Mechanics

Safety remains a paramount concern in the elevator industry. Brian O'Connell assures users, "People are always worried about elevators falling, and you have nothing to worry about on a lot of these machines" (18:49). Modern elevators are equipped with multiple safety features, including multiple hoist ropes and safety brakes, significantly reducing the risk of accidents.

Shannon Moore, a third-generation elevator mechanic, provides an insider's perspective on maintenance and troubleshooting. He describes the meticulous process of diagnosing and repairing elevator issues, often comparing the elevator's control systems to the human body: "The controller... is typically like the brain" and "the traveler... kind of like your spinal cord" (17:46). This analogy underscores the complexity and precision required in maintaining elevator systems.

Training and Career Pathways in Elevator Mechanics

The path to becoming an elevator mechanic is rigorous and highly specialized. Moore shares, "The apprenticeship program is a five-year program... you'll learn your knots, square knots, bowline knot... and hook your fall protection harness up" (14:24). This comprehensive training ensures that mechanics are well-prepared to handle the technical and safety demands of the job.

Frank Christensen, President of the International Union of Elevator Constructors (IUEC), discusses the evolution of safety standards in the trade. Reflecting on past practices, he notes, "Back when I started off... you very rarely ever wore a harness..." (15:25). However, under his leadership, the union has significantly improved safety measures, achieving two and a half years without a fatality by prioritizing comprehensive safety protocols (16:01).

Economic and Social Importance of Elevators

Elevators are not merely conveniences; they are essential for accessibility, particularly for individuals with limited mobility. Moore emphasizes, "For millions of Americans, elevators aren't just convenient, they're essential" (21:11). The demand for reliable elevators translates to a need for skilled mechanics, ensuring continuous employment and expertise within the industry.

As urbanization continues and buildings reach new heights, the elevator industry is poised for growth. Moore humorously anticipates, "We're going to start our own reality TV show. Instead of Duck Dynasty, it'll be Elevator Dynasty" (21:42), highlighting the cultural significance and recognition that skilled elevator mechanics deserve.

Conclusion: The Future of Elevators and Their Economic Impact

In wrapping up the episode, Crockett underscores the critical role elevators play in modern society and the ongoing economic implications related to their installation, maintenance, and modernization. The conversation between industry experts illuminates the intricate balance between technological advancement, safety, regulatory compliance, and economic feasibility that defines the elevator industry's landscape.

Notable Quotes:

• "If your elevator works well, it's easy to take it for granted." — Zachary Crockett (01:09)

• "We rarely wear a harness when we walked on the job. That was stupid." — Frank Christensen (15:29)

• "Most of the money spent on elevators is actually not in installing new elevators. It's in service, maintenance, and what are called modernizations." — Stephen Smith (08:28)

• "The controller... is typically like the brain." — Shannon Moore (17:46)

Key Takeaways:

• Elevators are integral to urban infrastructure, enabling high-density and high-rise buildings.

• The elevator industry is technologically advanced and economically significant, with substantial investments in safety and maintenance.

• Becoming an elevator mechanic requires extensive training and commitment, reflecting the complexity and importance of the role.

• Ongoing modernization and maintenance are critical for the safety, efficiency, and longevity of elevator systems.

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