There have always been 'blue collar' engineering jobs. When I started in the tech industry I was making $13 an hour writing HTML and a bit of SQL here and there.
There are probably tens of thousands of "Software Engineers" putting together PHP sites, doing front end JS work at an entry level, hacking together some minor software customizations. I think you're right, this will become more prevalent. The world needs a lot more engineers to do this kind of work.
>There is a disinterest among business to pay higher, and higher salaries.
Evidence points to the contrary, salaries have skyrocketed in the last ten years... have you been paying attention?