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- Younger generations, particularly Gen Z, are attracted to trades and services due to rising education costs, a desire for stability, and purpose-driven work.
- Technologies such as AI, IoT, and automation are transforming operational efficiencies, training, and service delivery in the trades and services industry.
- The flexibility and autonomy of the gig economy, combined with advancements in mobile technology and cloud-based platforms, are enabling more tradespeople to work independently and remotely.
This article is based on the Allwork.Space Future of Work Podcast episode featuring Joseph Pascaretta, Chief Operating Officer at WorkWave. Click here to listen to the full episode.
The trades and services industry, traditionally seen as the backbone of local economies, is experiencing a new phase driven by technological innovations and a repositioning in workforce demographics. How will these changes shape the future of this critical sector?
In a recent Allwork.Space Future of Work Podcast conversation, Joseph Pascaretta, Chief Operating Officer at WorkWave, provided insightful commentary on these changes. With his extensive expertise in business operations, program management, and customer service, he is a valuable voice in discussing the impact of technology on the trades and services industry.
In our conversation he explained how younger generations are gravitating towards these fields and how technology is revolutionizing industry practices.
Transforming Workforce Demographics
Pascaretta highlighted a pivotal trend: a growing interest among younger generations, specifically Gen Z, in pursuing careers in the trades and services sectors. Unlike their predecessors, who often gravitated towards traditional corporate roles or pursued higher education degrees, Gen Z individuals are demonstrating a keen interest in hands-on, rewarding careers that offer tangible outcomes.
“We believe that the services industry is starting to appeal more to these younger generations, to these new entrants that may have pursued a four year degree or gone into large corporate business,” Pascaretta said on the podcast.
Motivations Behind the Shift:
- Rising Costs of Higher Education: The prohibitive costs associated with higher education have steered many young individuals away from four-year degrees, prompting them to explore more cost-effective career paths in trades.
- Desire for Stability and Tangible Achievements: Trades and service roles offer a sense of stability and immediate gratification, elements highly valued by Gen Z. Completing a project, solving a problem, or assisting a customer provides tangible, rewarding experiences.
- Purpose-Driven Work: This generation shows a marked preference for work that aligns with their personal values and ethics.
Technology is Reshaping the Trades and Services Industry
One of the most compelling points made by Pascaretta revolves around the central role of technology in reshaping the trades and services industry. He emphasized the adoption of advanced technologies like AI and Internet of Things (IoT) to optimize various aspects of the business, from remote monitoring to dynamic routing.
Technological advances have brought significant improvements to various sectors, including pest control, logistics, and operational processes. In pest control, AI and IoT are being leveraged for remote monitoring of pests, even in hard-to-reach areas such as attics, with satellite technology establishing connectivity.
For logistics, geo-tracking combined with AI dynamically routes service vehicles, enhancing efficiency and reducing operational costs. There is a notable change from manual processes to digital-first solutions, encompassing the adoption of paperless systems, automated dispatching, and remote customer interactions.
Middle-Market and Small Business Adoption
Pascaretta’s insights into the adoption of technology are especially intriguing. He pointed out that not only large corporations but also mid-sized and smaller companies are integrating advanced technological tools to streamline operations. This broad adoption is facilitated by software-as-a-service (SaaS) companies, such as WorkWave, which provide scalable, accessible solutions irrespective of company size.
This technological integration has significant impacts on small businesses. Hiring trends are shifting, with smaller businesses, including those in the lawn and landscape sector, now hiring roles like Chief Information Officers (CIOs) and Chief Technology Officers (CTOs), positions historically associated with larger firms.
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Additionally, companies of various sizes are increasingly relying on data-driven decision-making processes to optimize their operational strategies. The adoption of new technologies is not just about efficiency but also about creating a competitive edge. Companies that integrate modern payment systems and offer enhanced customer service options are setting themselves apart in the marketplace.
The Future of Trades and Services
Looking forward, Pascaretta sees a significant transformation in the trades and services industry, driven by both generational shifts and technological advancements. The convergence of a tech-savvy younger workforce with evolving digital tools promises a future where trades and services are not only more efficient but also more attractive career options.
The convergence of a tech-savvy younger workforce with evolving digital tools promises a future where trades and services are not only more efficient but also more attractive career options.
The Intersection of Technology and Financial Flexibility
A major highlight of Pascaretta’s discussion on the Future of Work podcast revolves around how technology and financial services (fintech) are increasingly enabling flexibility in payment options.
Historically, businesses and consumers engaging with trades and services—be it HVAC installations or landscaping—faced significant upfront cash requirements. Such financial barriers often resulted in delays or dissatisfaction.
However, leveraging modern fintech solutions, businesses no longer need to act as financial intermediaries. Instead, they can provide customers with a variety of credit options, loans, and flexible payment plans.
This trend is particularly significant given the rising financial volatility and geopolitical uncertainty. By offering such flexibility, businesses can enhance customer experiences and satisfaction, leading to increased demand.
Growth in Skilled Trade Jobs and Its Economic Implications
Transitioning from fintech to workforce dynamics, Pascaretta pointed to the remarkable growth in skilled trade jobs.
“The reality is the number of what I would consider skilled trade jobs between 2020 and 2030 are projected to grow in excess of 10%, which is one of the only industries out there where you’re seeing that double digit growth. So that’s about a million new jobs in the United States, let alone worldwide,” he said.
This growth is driven, in part, by increased average salaries for skilled trades, such as electricians, plumbers, and HVAC technicians. The shortage of skilled workers, exacerbated by the pandemic, has allowed tradespeople to command higher wages, making these careers more attractive to younger generations.
AI’s Role in Training and Operations
Traditionally, mastering a trade required years of apprenticeship under seasoned veterans. Today, however, AI-driven training tools, accessible via mobile devices, are democratizing knowledge acquisition. Detailed video tutorials and AI-powered instruction manuals allow new workers to quickly learn complex tasks, such as installing or repairing equipment with unique challenges.
Such technological empowerment not only heightens the efficiency but also enhances the appeal of trade jobs, making them less daunting and more accessible. This democratization of knowledge benefits both new tradespeople—by reducing the learning curve—and customers—by ensuring work is completed swiftly and competently.
Moreover, AI and automation are set to profoundly impact operational efficiency.
“We believe by 2025 — so by next year — AI and automation is going to impact specifically in field services in the trade industry, over 45% of the tasks, which is huge,” Pascaretta told Allwork.Space.
This transition could optimize margins and improve service delivery. Integrating IoT devices with AI further enhances these capabilities, enabling real-time monitoring and maintenance of equipment.
The Gig Economy and Entrepreneurial Opportunities
The gig economy’s flexibility and autonomy have attracted a growing number of individuals who prefer operating independently rather than building traditional businesses.
“We see a projection of over 450 billion globally in the next year. And that’s if you do the math, in the United States alone, that’s over 70 million gig economy workers,” Pascaretta said.
This is particularly advantageous for those in the trades sector. Technological advancements reduce the overhead associated with running a solo or small-scale operation, making it feasible for tradespeople to start and manage their own businesses without significant initial investments. Platforms that connect gig workers with potential clients are proliferating, creating new avenues for entrepreneurship within the trades.
Remote Work in Field Services
Pascaretta also touched on the evolving nature of remote work within field services. He projected that by 2025, over 30% of the field services workforce could be working remotely. This is facilitated by mobile technology and cloud-based platforms that allow field technicians to operate seamlessly from various locations.
Remote work not only offers flexibility to employees but also enhances operational efficiency for businesses. It allows for better resource allocation and real-time updates, translating into improved service delivery and customer satisfaction.
The Trade Industry Looks Promising
Pascaretta’s insights reveal that the trades and services industry is in a sort of metamorphosis, driven by fintech solutions, AI, automation, and the gig economy. As technology and financial innovations reshape this sector, creating new opportunities and overcoming traditional challenges, businesses are poised to offer more efficient operations and enhanced customer satisfaction.
The future of trades and services promises fulfilling, technology-driven careers. Keep an eye on these trends—they are set to redefine the industry landscape and may just inspire your next career move or business innovation.
