Five Construction Trends Shaping the Industry in 2024

Despite starting a New Year, the trends we saw late in 2023 continue to impact the construction industry. Towards the end of 2023, we saw increased public spending and shortened material times, which boosted the industry and offset any decrease in the residential sector. However, projects also had to cope with financial challenges and fluctuating material and labor costs due to shifting economic conditions – which we expect to continue through the first half of 2024.

See what other trends we anticipate will impact the evolving industry of construction in the year ahead, and what you can do to offset them.

Navigating a Shift Towards Advanced Technologies  

The construction industry has been slower to adopt emerging technologies than initially forecasted. Technology adoption that has been prioritized has been focused on those methodologies that drive productivity, efficiency, and safety with the goal of hedging against the chronic labor shortage the industry continues to face.

The use of drones, site monitoring technology, information tracking dashboards, and robotics for repetitive tasks are all advancing. We anticipate this, along with the rise of generative AI, will mark a pivotal movement in the industry’s digital transformation.  

To remain competitive in such a market, organizations are looking at how they can adopt these technologies to suit their business needs and drive improved profit, efficiency, and project delivery. As this adoption increases, we anticipate employers will soon be looking to hire candidates who hold the skills to utilize and drive such technologies.

Upskilling Workforce  

One thing that remains pertinent to the construction industry's success is employees holding the necessary skills. While this need has not changed, where we have seen a shift is in organizations’ ability to meet this need as they face the challenge of a widening generational gap and aging workforce, with more than 20% of the workforce expected to reach retirement in the next 5 – 10 years.  

As a result, it is estimated that the industry will need to attract more than half a million new workers in 2024 in addition to the average pace of hiring to meet the labor demand this year, bringing a significant challenge to hiring managers.  

The combination of a retiring workforce, historically low unemployment in the industry for two straight years, several public and private mega projects, and the likelihood of lowering interest rates this year which will boost certain market segments combine to create an unprecedented skill shortage. As a result, it is imperative organizations look to upskill their younger and emerging workforce to offset this challenge.  

Flexibility

Another area poised to increase attraction and retention of top talent is flexibility and agility. Compared to other industries, construction largely requires a physical presence, and in-person work is a requirement— something we predict is not likely to change soon.  

However, with the competition for talent in the industry so fierce, construction companies are looking at any opportunity they can to add to their benefits and flexible working policies to both attract and retain talent. As a result, work-life balance has become an increasingly crucial factor in determining whether a new position, or an existing role is the right fit, and is a contributing factor to skilled labor leaving the industry to seek more flexible environments, specifically at the junior to mid-level.  

This desire for an increased level of flexibility is already apparently amongst office-based positions such as project management and estimating, with employees looking for a more balanced lifestyle with fixed hours, no weekend work, and reduced commute times.  

Sustainability and Efficiency  

The construction industry continues to evolve in this space and drives best practices prioritizing projects that are more environmentally friendly and resource-efficient.  

Sustainability and efficiency in the construction sector applies to processes and materials used. While adoption of technology is still growing, we see the use of techniques that drive energy and cost efficiencies. Likewise, from the design phase through construction, candidates with experience in delivering "green building" projects are in high demand. Experience in procuring green materials, optimizing supply chains to construction sites to reduce the carbon footprint, management of "green building" projects, and sustainable construction methods are all skill sets that are increasingly sought after.

Demand for Field and Office Staff

With an increasing demand for field and office staff across all levels, we see candidates with niche, valuable project experience in healthcare, education, senior and assisted living, manufacturing, and data centers are particularly in demand.  

Due to the investment in these sectors and projected growth in 2024, we predict the demand will not slow down any time soon. Since most general contractors have felt the underlying pressure related to cost in recent years, candidates who have strong construction and estimating experience will likely remain highly sought after.  

How can Michael Page Construction help your business?  

Our consultants work closely with leading general contractors and developers to help with their talent needs, including attraction, retention, and professional development in a competitive market. To arrange an introductory conversation, get in touch with us.