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The construction and proptech industries are undergoing significant change due to rapid technological developments and changing market demand. Once reluctant to embrace innovation, these sectors are now leading a technological revolution that is transforming job roles, project management and overall industry dynamics.
The Convergence of Technology in Construction and Undergraduate
Traditionally resistant to change, the construction sector is now rapidly incorporating advanced technologies such as offsite manufacturing, 3D printing and AI-driven design, influenced by global efforts towards sustainability and efficiency.
This incorporation of advanced technologies in construction leads to the creation of new jobs, some of which include Operators of robotic equipmentthat supervise machines such as autonomous bulldozers, cranes and excavators on construction sites and AI Architects, who design intelligent systems to automate manufacturing processes and improve efficiency. Other roles include; Digital Twin Specialistswho create and manage digital copies of physical assets to monitor and optimize their performance, and 3D printing technicians, who operate and maintain 3D printing equipment for the manufacture of structural components. These positions reflect similar developments in proptech, where digital tools are revolutionizing property management and property transactions, as highlighted in CRETI Proptech Jobs Index.
In addition, a recent report from Autodesk notes that 95% of UK construction companies are planning significant investment in emerging technologies to streamline operations and improve project delivery. This change includes adopting new tools and rethinking business models and strategic approaches in the industry. According to the report, larger businesses and contractors are more likely to invest in these technologies compared to smaller companies and subcontractors. Companies need to start laying the groundwork now to ensure these plans are realized in the future.
Further research by PHD Media underlines that the new professions will not be exclusively related to technology. Instead, there will be greater demand for professionals to respond to sustainability and diversity, equity and inclusion challenges. Positions such as Sustainability Managers and Green Construction Analysts will, therefore, be in great demand. They should identify and monitor the environmental and social impacts of an organization’s activities and develop and implement strategies to improve resource efficiency and promote respect for ethics and corporate values.
Trends in Construction
Data from European Center for the Development of Vocational Training (Cedefop) shows that the construction sector is a vital part of the EU economy, employing over 13 million people. This sector drives economic growth, particularly during periods of recovery, through government-funded infrastructure projects. Construction is also playing a key role in the green transition, spearheading initiatives such as the Renovation Wave and the New European Bauhaus, which aim to create smarter, greener cities across Europe.
Despite being one of the least digitized sectors in the EU, construction is witnessing a growing demand for highly skilled workers as digital technologies transform the industry. Skills in high demand include use of CAD software, digital collaboration and creative design. Cedefop’s analysis highlights significant training needs for construction workers, particularly those with vocational education and training (VET) qualifications. In addition, many worker skills are underutilized, especially among the sizable immigrant workforce.
In light of this, it is clear that the sector needs to adapt to the dual transition — digital and green — while responding to disruptions such as supply chain problems and rising costs. This adaptation will require technologies that reduce costs and manufacturing techniques that enhance productivity.
Given the employment structure of the manufacturing sector, with many small businesses, reskilling workers is a formidable task. Failure to meet emerging skills needs could limit the industry’s ability to meet current and future challenges. VET stakeholders must therefore continue to develop initiatives to address the challenges posed by digitalisation, the green transition and an aging workforce.
Employment and labor demand
Cedefop’s 2023 update highlights the critical role of construction workers in tasks such as demolition, construction, renovation and maintenance. In 2022, around 7.6 million people were employed in these roles, representing around 4% of total employment in the EU.
In addition, employment trends for construction workers have shown resilience, recovering quickly from declines such as those caused by the COVID-19 pandemic, and are projected to remain stable from 2022 to 2035, with an expected increase of approximately 90,000 jobs. The industry’s adoption of digital and green technologies has also driven demand for additional construction workers.
However, the main driver of job demand will be the need to replace workers leaving the labor market due to retirement or other reasons, with around 4.2 million jobs needing to be filled between 2022 and 2035.
Addressing the skills challenge
Equipping construction workers with up-to-date skills is critical to achieving green and digital transition goals. Most construction workers start with vocational qualifications at ISCED levels 3 and 4. Efforts are needed to make initial vocational education and training (VET) attractive and to provide continuing vocational education and training (CVET) to reskill and upgrade existing workers.
The European Commission is emphasizing attracting more young people to the construction sector and providing appropriate training, with apprenticeships playing a vital role. Short training and online training, together with initiatives such as the BuildUpSkills Initiative, provide flexible access to training. The Erasmus+ Skills Blueprint for the Construction Industry identifies key factors shaping future skills needs, including the increasing integration of technology, automation and sustainable construction practices.
Navigating Current Uncertainties: Balancing Investments in People and Technology
In the face of industry uncertainty, businesses are taking a cautious but strategic approach to their investments, particularly in human resources and technology. Industry information shows that approx 42% of companies plan to prioritize hiring new staff, and almost as much (39%) they will invest in training and upgrading their current workforce. Additionally, one third of companies plan to focus on investing in apprenticeships.
While there is a significant emphasis on investing in people, investing in technology is ranked slightly lower in priority. Approximately 27% of businesses say they will prioritize investment in manufacturing technology. Larger businesses (those with more than 100 employees) are more likely to do so (36%) compared to their smaller counterparts (24%), suggesting a stronger focus on technological advancement in larger firms. Additionally, three out of ten businesses plan to invest in zero-carbon initiatives and sustainability and ESG strategies over the next two years, reflecting a strong response to growing customer demands for sustainable construction practices.
These changes are shaping how companies operate and compete in the evolving market landscape. Skilled employees are key to the success of every construction project, company and national program. Strengthening the talent pipeline by attracting new hires, upskilling employees and providing employees with digital tools to improve their productivity and satisfaction is essential.
conclusion
The construction and procurement technology industries are at a critical juncture where the integration of advanced technologies and a focus on strengthening human capital are essential for future success. As these fields continue to evolve, companies that effectively balance the need to innovate with the need to develop a skilled workforce will likely succeed. This transformation promises a future that is more efficient, sustainable and responsive to tomorrow’s needs. The fusion of technology and traditional practices is likely to lead to significant advances in the way we perceive and interact with the built environment, signaling a new phase in construction and real estate technology. Taken together, adopting these changes today will set the stage for more affordable, sustainable and high-quality construction projects in the future.