The Trade Labor Crisis is Real—Gen Z Has the Solution

February 2, 2025
9 Min Read

Key takeaways

The trade industry is experiencing a great shortage in terms of skilled workforce. From manufacturing to construction, especially in industries like HVAC, electrical, plumbing, and fire safety, the story remains the same. With significant worker demand for these industries, they are facing a hiring crunch for skilled workers in the field. According to Associated Builders and Contractors (ABC), the construction industry faces a gradual shortage of trade workers and will need to attract a minimum of 501,000 employees on top of the standard hiring rate to get back on track in 2024.

This situation challenges not only construction contractors and project managers but also other industry professionals, such as talent acquisition teams, investors, training program leaders, and construction business owners.

Reasons For Labor Shortage In Trade Business

There are many reasons behind this shortage, and it’s all interconnected. To solve this situation, robust and creative measures need to be taken. Technology adoption, attracting workers with the right tools, and forecasting a stable future career trajectory for them are some of the ways you can motivate individuals to join the workforce.

The growing shift in perspective for the young generation is gradually increasing. Earlier, the race was to get a degree and a white-collar job subsequent to it for a sophisticated and prestigious life. But it’s not the same anymore. With the rise in AI and job dissatisfaction among individuals, the recent generation is changing their mindset about their career streams.

The tool belt generation, aka the Gen Z population, is choosing to ditch their college degrees and get into the trades instead of working at traditional nine-to-five desk jobs. These are the individuals who will be coming in next and need to be made to realize the benefits of getting into the construction industry.

Field service management software enables seamlessness and optimizes the majority of the workflow, which can help the newer generation understand that blue-collar jobs are no longer as laborious as they used to be. And providing them with an efficient FSM platform can help them understand the efficiency and automation that come with the jobs in the industry.

Times have changed, and workers are no longer following primitive methods of going about their blue-collar jobs, which include strenuous manual labor and redundant document processing. With advanced technology and cutting-edge integrations into the workforce and business processes, attracting a young crowd is easier than ever. These individuals are more tech-savvy than ever before, which means if offered a stable perspective of where this career can take them, it can enable them to choose the right career path in the construction field.

GenZ Solution To Trade Worker Shortage in Industries

According to job placement companies, the number of job postings for skilled workers outpaces the number of qualified workers required to fill them. Companies are pushing toward technological advancements to make job opportunities lucrative. The worst mistake a construction contractor or business owner can make is not adopting the necessary technologies and cutting-edge solutions to streamline their business operations.

The toolbelt generation is showing considerable interest in joining the trades. However, their expectations are different from those of previous generations. GenZs are tech-savvy individuals who value efficiency in their jobs and look for companies that have adopted and integrated modern technologies into their workforce.

This only means one thing. There is a simple way out of the labor shortage: hire genZ workers. But, businesses need to adapt to the changing digital scenario. They need to push their businesses towards efficiency and automation of redundant business processes. They need to integrate technology solutions that optimize their job and bring in efficiency that prevents these jobs from being considered laborious without a pay that matches the input.

Technology Is The Key To Attracting The Toolbelt Generation

Rather than following the default path of getting a four-year college degree and working at a desk job, the younger generation considers the trades a better alternative to a stable career path. With the advent of AI and the instability of their careers, the trades provide them with ample job satisfaction and a sense of purpose that comes with completing jobs and seeing the after-effects of their hard work.

The GenZ group can be enticed to work in manufacturing or construction. Providing them with lucrative job opportunities that enable the use of advanced technological innovations, allowing them to work faster and better, helps them embrace it and consider it a better opportunity than waiting for their college degree to offer them mainstream jobs.

Moreover, training and apprenticeship in the trades are a cost-effective solution to expensive college degrees that offer them nothing but years of debt and a shaky guarantee of placements after graduation. This is one of the prime reasons why the younger generation is choosing to indulge their time being productive in fields that give them a secured income along with the satisfaction of making a change using their hands that help other individuals.

The demand for workers is ever-rising, and the shortage faced currently ensures that trade jobs will still uphold their value and importance in the future. With businesses embracing advancements and upgrading their operations and how they conduct their business, this seems to the younger lot a better way to upskill themselves and choose a career path that pays well and provides a sense of satisfaction.

Embracing Operational Efficiency With Technology

Leveraging the infinite benefits of technology for your business not only helps you attract more workers but also helps you improve your business. Traditional methods of conducting business slow down your processes, delay work and services unwillingly, promote unproductivity to enable redundant tasks to take over and keep your workers busy for long hours without actually getting any substantial work done.

Let’s take the example of field service management software. The software enables the automation of redundant tasks and streamlines all business processes in one place. The software enables you to minimize the use of pen and paper and be totally reliant on digital tools to keep your business running at a smoother pace and earn more revenue with better customer service.

Now, enabling field service management software for your business could mean that you have taken the initial steps to boost your business and get it all set for the toolbelt gen workers to be confident about working for your company. Considering your business is open to change and embracing technological innovations as and when it is deemed necessary to better your business helps them relate more to your business and consider your values aligned.

Not just attracting skilled workers but, nevertheless to say, it helps your business a great deal with improving its operations and processes. For starters, there’s an increased boost in productivity across all employees. On top of that, this software integrates the features and benefits of other systems like ZRM and ERP, which ensures a seamless flow of data across departments. Intelligent features such as scheduling and dispatching make optimizing job assignments for technicians easier based on their skills, location, and availability.

Furthermore, FSM software enables mobile applications, which are helpful tools, especially when working in the field. With real-time sync and access to job details, technicians can update their status on the go instead of manually updating the back office after each job completion.

All of the above combined contribute to effective customer service, leading to better satisfaction levels among clients. This could lead them to book your business for a second time and even convert into long-time loyal customers.

Should Investors Care About The Upcoming Developments?

Investors and PE firms are investing in such companies to adopt and promote tech-friendly environments, which can help them position their portfolios and take advantage of the growing talent pool.

Companies that are quick to integrate and utilize digital tools for seamless automation and efficiency will definitely enjoy the benefits of attracting and retaining the toolbelt generation of workers. PE firms and investors that promote such advancements will not only address the labor shortage but also future-proof their companies by creating a tech-driven workforce.

They also enable workforce productivity by modernizing operations with technology. This does not just help young workers but also makes the job of older employees easier and helps them do more work with less effort.

PE firms and investors are usually looking for high returns, which can only be received with increased profitability and efficiency—something that comes with integrating technology and adopting modern tools for better workflows.

Moreover, companies that recruit the toolbelt generation gain a competitive advantage in the market. As entities that support forward-thinking companies and encourage smart business growth, improved margins, and better market positioning, they position themselves better than companies that lack in providing tech-driven work solutions.

In summary, PE firms and investors have a unique opportunity to back companies that invest in technology to attract Gen Z, tackle worker shortages, and create sustainable, high-growth businesses.

Get your business started with the best FSM software.

Trusted by most business owners and technicians, ZenTrades provides the best software solution for all trades—Fire safety, HVAC, plumbing, and electrical. Manage your entire business in one place and streamline all your operations, from inspection appointments to sending out invoices and collecting payments.

For the icing on the cake, ZenTrades provides software solutions that use the latest technology to help you with your job, enhance productivity, and double your revenue in no time! It automates your redundant tasks and frees up your schedule so that you can focus more where you need to the most.

Software solutions by ZenTrades focus on modularity – which means you can choose the features you need and leave out the ones you don’t need. Not only does this help you cut back on costs, but it also enhances eficiency and value for money.

Don’t take our word for it. Try it out on your own!

Book a free personalized demo with us and learn the various possibilities for bringing out the best in your business. Loved by contractors of all generations, ZenTrades is your partner in business success.

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