Four predictions for 2024
Posted by: electime 10th January 2024
Maria Davidson, the CEO of materials management platform Kojo, has some bold predictions about what’s in store for 2024 and can speak to:
#1
In 2024, the labor shortage in construction will become more acute. The Bureau of Labor Statistics estimates that employment of electricians will grow 6 per cent from 2022 to 2032, double the average for all occupations. There are already 650,000 construction workers missing from our workforce to meet current demand, and next year, we expect there to be around 75,000 new job openings for electricians alone. At the industry’s current hiring pace, it will be very challenging to fill those jobs at the rate that we need.
With growing demand for labor but not enough people entering the trades, the pressure on our existing workforce to get more done will grow. As a result, I expect to see more investment in attracting younger people into the construction trades, especially in apprenticeship programs and recruiting initiatives in high schools.
To get this right, we’ll need to make construction, especially the electrical sector, an industry that students in high schools are excited about. We’ll need to make it an industry that’s seen as modern, that embraces exciting technology, that does hugely impactful work, and that offers stable, long-term careers.
#2
There will be a major shift in focus from vertical construction to horizontal construction. I expect additional focus to shift from residential high rises and skyscraper buildings in city centers to horizontal projects. These will include energy infrastructure projects such as solar farms that cover larger geographic areas. The challenges of managing deliveries, schedules, and equipment on job sites that are many miles long are distinct. In 2024, we’ll see more companies develop solutions to solve these.
#3
In 2024, we will see continued pressure on our supply chain. As we move towards ‘electrifying everything,’ we’ll need to make grid modifications and install new electrical capacity. Research shows that most single-family homes will need to upgrade their electrical panels to accommodate a fully electrified house. Next year, households will be replacing their natural gas stoves, installing solar panels, and buying electric cars. New buildings will be built with more sophisticated energy usage monitoring, older buildings will need to be upgraded, and American-made materials will need to be sourced for infrastructure projects. With items like transformers still frequently being delayed by 52+ weeks, the strain on the supply chain will continue to mount.
#4
In 2024, we’ll see more digitization than ever before. Whether using AI to find alternate materials or create building renders, using apps to track deliveries and log hours, or using software to keep large teams on the same page – the tech adoption rate will only accelerate. Data will be increasingly leveraged for deciding what to order and help inform everything from scheduling to cash flow decisions. In 2024, we’ll see companies lean into digitization more than ever before to help their teams be more productive and avoid costly rework
