New jobs in construction and real estate

The construction and real estate industries are experiencing significant change due to rapid technological advancements and shifting market demands. Once reluctant to embrace innovation, these industries are now leading a technological revolution that is transforming job roles, project management, and the dynamics of the industry as a whole.

Fusion of Contec and Proptech technologies

Traditionally resistant to change, the construction industry is now influenced by the global drive towards sustainability and efficiency and is rapidly embracing advanced technologies such as off-site manufacturing, 3D printing and AI-driven design.

The integration of advanced technologies in the construction industry is giving rise to new job roles. These include robotic equipment operators who monitor machines such as autonomous bulldozers, cranes and excavators on construction sites, and AI architects who design intelligent systems to automate construction processes and improve efficiency. Other roles include digital twin specialists who create and manage digital replicas of physical assets to monitor and optimize performance, and 3D printing technicians who operate and maintain 3D printing equipment to build building components. These roles mirror similar developments in real estate technology, where digital tools are revolutionizing property management and real estate transactions, as highlighted in the CRETI Real Estate Technology Jobs Index.

Additionally, a recent report from Autodesk found that 95% of UK construction companies plan to invest significantly in emerging technologies to streamline operations and enhance project delivery. This change includes adopting new tools and rethinking business models and strategic approaches within the industry. The report found that large companies and contractors are more likely to invest in these technologies than SMEs and subcontractors. Companies need to start preparing now to ensure these plans become reality in the future.

Further research by PHD Media highlights that new jobs will not just be technology-related. Rather, there will be a growing demand for professionals who address sustainability and diversity, equity and inclusion challenges. Job roles such as sustainability managers and green construction analysts will therefore be in high demand. These roles require identifying and monitoring the environmental and social impacts of an organization’s activities, developing and implementing strategies to improve resource efficiency and promote respect for ethics and company values.

Construction Industry Trends

According to data from the European Centre for the Development of Vocational Training (Cedefop), the construction sector is a key part of the EU economy, providing more than 13 million jobs. The sector drives economic growth through state-funded infrastructure projects, especially during the recovery period. The construction sector also plays a key role in the green transition, spearheading initiatives such as Renovation Wave and New European Bauhaus, which aim to create smarter, greener cities across Europe.

Despite being one of the least digitalised sectors in the EU, the demand for highly qualified workers is growing as digital technologies transform the industry. In-demand skills include the use of CAD software, digital collaboration and creative design. Cedefop’s analysis highlights a significant increase in training needs for construction workers, especially those with vocational education and training (VET) qualifications. Furthermore, the skills of many workers are underutilised, especially among the significant number of migrant workers.

Given this, it is clear that the construction industry will need to adapt to a dual digital and green transition while also managing disruptions such as supply chain issues and rising costs, which will require cost-saving technologies and productivity-enhancing construction methods.

With many micro-enterprises in the construction sector’s employment structure, reskilling workers is a challenge. Failure to address new skills needs could limit the sector’s ability to meet current and future challenges. VET stakeholders therefore need to continue developing initiatives to address the challenges posed by digitalization, the green transition and an ageing workforce.

Employment and job demand

Cedefop’s 2023 update highlights the important role of construction workers in tasks such as demolition, construction, renovation and maintenance. In 2022, around 7.6 million people will be employed in these roles, representing around 4% of total employment in the EU.

Moreover, employment trends for construction workers are showing resilience, recovering quickly after declines caused by factors such as the COVID-19 pandemic, and are expected to stabilize between 2022 and 2035, with an increase of around 90,000 jobs. The adoption of digital and green technologies by the industry is also leading to an increased demand for construction workers.

However, the main driver of employment demand will be the need to replace workers who retire or leave the labor market for other reasons, with an estimated 4.2 million job vacancies needing to be filled between 2022 and 2035.

Addressing the skills challenge

Equipping the construction workforce with up-to-date skills is essential to achieve green and digitalization goals. Most construction workers start with ISCED level 3 and 4 vocational qualifications. Efforts are needed to make initial vocational education and training (IVET) attractive and offer continuing vocational education and training (CVET) to reskill and upskill existing workers.

The European Commission is focused on attracting more young people to the construction industry and providing them with the right training, with apprenticeships playing a key role. Short courses, online training and initiatives such as the BuildUpSkills Initiative provide flexible access to training. The Erasmus+ Skills Blueprint for the construction industry identifies key factors that will shape future skills needs, including greater integration of technology, automation and sustainable construction methods.

Navigating current uncertainty: Balancing investments in people and technology

In the face of industry uncertainty, businesses are demonstrating a cautious and strategic approach to investment, particularly in people and technology. Industry insights reveal that around 42% of businesses plan to prioritise the recruitment of new staff, while a similar number (39%) plan to invest in training and upskilling their current employees. Additionally, a third of businesses plan to focus on investing in apprenticeships.

While investment in people is a big focus, technology investments are somewhat less of a priority. Around 27% of companies say they will prioritize investment in construction technology. Large companies (100+ employees) are more likely to prioritize investment in construction technology (36%) compared to smaller companies (24%), highlighting the emphasis on technological advancements among larger companies. Additionally, three in 10 companies plan to invest in zero-carbon initiatives and sustainability and ESG strategies over the next two years, reflecting a strong response to growing customer demand for sustainable construction practices.

These changes are shaping how companies operate and compete in an evolving market environment. A skilled workforce is central to the success of every construction project, company, and national program. Strengthening your talent pipeline by attracting new hires, improving worker skills, and providing employees with the digital tools that increase productivity and satisfaction is essential.

Conclusion

The construction and real estate industries are at a critical crossroads where the integration of advanced technologies and a focus on enhancing human capital will be essential to future success. As these industries continue to evolve, companies that effectively balance the need to innovate with the need to develop a skilled workforce will be more likely to succeed. This transformation promises a future that is more efficient, sustainable, and responsive to tomorrow’s needs. The convergence of technology and traditional practices will bring about major advancements in how we conceive and interact with the built environment and will mark a new phase in construction and real estate technology. Overall, embracing these changes today will lay the foundation for more accessible, sustainable, and high-quality construction projects in the future.