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What You’ll Get: Insight into the future trends of the construction industry for 2024.
In 2023 we saw continued growth in the construction industry spurred by the passage of legislation including the Infrastructure Investment and Jobs Act, CHIPS Act and the Inflation Reduction Act. While this growth is promising it also shines a light on the challenges we face – especially the lack of skilled workers and the challenges faced by construction staffing professionals.
As we look ahead to 2024 innovation will drive the construction industry forward as contractors and workers alike find new ways to seize opportunities, build a more sustainable future and continue to be reminded of the critical skills that are the foundation of our built world.
1. Data will dominate.
Thanks to the introduction of more digitally-enabled technology in construction including drones, sensors and wearables, the ability to capture real-world data from job sites is becoming effortless. This data will prove invaluable as the industry becomes better at analyzing, interpreting and using that intelligence to accelerate construction.
In 2024, construction companies will not only capture more data but look for new ways of using that data to make more informed decisions, reduce risk and increase efficiency.
2. The industry will transition to a skills-based hiring model.
As labor participation rates continue, the industry will continue its struggle to hire and retain craft labor. By flipping traditional trades on their head to instead identify craft workers with needed skills instead of specific job titles or experiences the industry will start to reframe the talent classification. This will be a focus on clusters of required skills rather than proxies of skills like education, past employment and experience. This new approach in combination with mainstream adoption of sophisticated HR technology will breathe new life into construction staffing, and skilled trade acquisition and retention, encouraging a change in how companies value workers.
In 2024, construction companies will leverage skills-based hiring, stripping job descriptions of self-limiting requirements and removing the barriers to entry for highly capable craft workers of all backgrounds.
3. Self-perform will be the new go-to model for hiring and retention.
Pay is a critical lever when hiring and retaining workers, but it’s not enough. People want stability, benefits, upskill opportunities and so much more. As the industry continues to face labor shortages, GCs serious about finding long-term solutions will switch to self-perform, enabling them to secure premium margins with increased control over safety, quality, schedule, budget and culture.
From a construction staffing perspective, the full-time permanent workforces that come with self-perform will enable and in fact, demand that contractors focus more on culture, stability and long-term benefits, all of which are increasingly critical to today’s skilled worker.
4. AI will become a no-brainer, but robots not so much.
Automation in the built world has made great strides with digital tools like sensors that notify skilled workers if measurements differ from blueprints. With the ability to improve project timelines and safety while reducing costs, developers will be quick to invest in technology that can help achieve those results.
And while we may start to see robotics used to support preparation work and certain simpler elements of construction, in one of the most heavily regulated industries with myriad complications, unknowns and safety issues we will remain lightyears away (realistically, at least 50 years) from a fully autonomous self-directed craft robot that can start swinging hammers on dynamic job sites.
5. LEED-certified approaches will become omnipresent.
There is no denying the shift towards greener construction practices. The green building market is projected to grow to 1.3 trillion by 2030, with a compound annual growth rate (CAGR) of 9.50% from 2022-2030.
With this focus on sustainability, certifications like Leadership in Energy and Environmental Design (LEED) that provide the tools and infrastructure to ensure the buildings of tomorrow are equipped to meet the needs of a greener future will become more valuable industry-wide.
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