The data is clear.

The trades industry is at a major crossroads. During this period of major labor shortages and significant demographic shifts, we're also witnessing substantial investments in emerging sectors and technology.

We're entering a new era, but what will that era look like?

In this report, we take a look at some of the most significant data points and their impact on the day-to-day operations of trades and home services businesses.

500,000+

construction workers are needed in the U.S.

From skilled labor to specialty trades, there's plenty of work (and then some) to go around.Recent studies from the Associated Builders and Contractors[1] and the U.S. Chamber of Commerce[2] estimate a shortage of at least 500,000 construction and trades workers. Much of that shortage is on the commercial side, due to investments and earmarked projects from recent legislation.

However, in residential construction, some trades are reporting major labor needs. According to the Home Builders Institute[3], builders reported the most significant shortages in finished carpentry, masonry, rough carpentry, framing crews, and plumbing.

It's not all doom and gloom.

Employment numbers are beginning to improve as the conversation around the trades and vocational education shifts. More young workers[4] entering the labor market are considering a career in the trades, partly due to uncertainty about taking on student loans and partly because they are seeing positive portrayals of these jobs in their social media feeds.

51%

of U.S. small business owners are aged 55+[5]

In the coming years, a majority of small business owners in the United States will face significant decisions regarding retirement and business succession.

Succession planning involves more than just deciding who will take over the reins[6]. When you've built something on your name for decades, it's difficult to distance yourself from the business. While the traditional approach has been to sell to a partner or pass on to a family member, an increasing number of business owners are opting for alternative exit strategies, such as private equity[7] and employee stock ownership plans, or transitioning to worker ownership.

82%

of Skilled Trades Pros Use Technology Each Day[9]

Technology will be essential in this next phase of the trades, from training employees and documenting jobs to streamlining communication and automating tedious tasks.

Those outside the trades often have an image of the work stuck in a specific time and place. However, digital tools and technology are now as ubiquitous in day-to-day operations as hand tools, with more than four out of five tradespeople stating they use them daily.

Big Opportunities.

The great news is that times of big change often bring with them big opportunities. Those opportunities will come to those who don't shy away from the change, and face it head-on.

Understanding the trends we are seeing gives you an advantage. Protect your business from labor shortages by building your own pipeline of talent—offer trainings, apprenticeships, and a great work environment. Pay attention to technology trends and try out the new stuff whenever you can. Really listen to your customers and offer the greatest experience around.

And above all—do good work. It'll speak for itself.