The construction industry is on the brink of a monumental transformation in its operations and financial management. While the fundamental risks — business, technical, and integration — remain, the rapid introduction of new technologies is reshaping how these risks are understood and managed. Harnessing data-driven processes, reducing waste, and standardizing work can unlock unprecedented efficiencies. This evolution paves the way for newer technologies to be seamlessly incorporated, tailored to the sector’s specific needs.

In this data-centric future, instinct will be quantified, validated, and, ultimately, replaced with hard facts. For construction leaders, this means embracing a paradigm shift toward data-driven decision-making and real-time forecasting.

Data will play a crucial role in shaping succession planning and preparing for the workforce of the future. The strategic use of artificial intelligence (AI) marks a turning point in risk management. The future of prefabrication and off-site construction hinges on this new workforce’s ability to skillfully leverage data and AI.

As we approach this era of accelerated technological advancement and industrialization, the enduring principles of construction financial management are steadfast and will serve as a compass, guiding construction finance professionals through the future. For example, the significant overhaul brought about by the Federal Accounting Standards Board’s (FASB’s) Accounting Standard Codification (ASC) Topic 606, which redefined revenue recognition regulations in 2019 for private entities, hasn’t fully impacted the industry yet.¹

In addition, with the transition from the Baby Boomer generation to Millennials and Gen Z, the industry faces dual challenges: adapting to a new workforce demographic while embracing the ongoing Industrialization of Construction^®. These simultaneous shifts demand a proactive approach to workforce planning, compelling us to rethink the future of construction labor and management.

Future Workforce Requirements

Workforce evolution isn’t just about numbers — it’s about culture, policies, and processes that reflect and shape the people within an organization. Preparing for the future begins with today’s actions: explicitly capturing and transferring knowledge to ensure growth.

While the core principles of management and strategic planning remain unchanged, the rapid evolution of people and technology necessitates a deliberate effort to bridge the knowledge gap, fostering a dynamic and prepared workforce for the future.

Looking ahead to 2030 and beyond, the requirements for the workforce were predicted in forecasts more than a decade ago:

• Technology Integration: Mobile devices and real-time information access is no longer a futuristic concept, but rather a daily occurrence. The introduction of the digital gang box in 2013 — now seen on every jobsite — is a prime example of technology being adapted and adopted into toolboxes.
• Prefabrication: Once deemed improbable, the push for prefabrication has gained significant momentum. While research shows that, at a minimum, 30% of the work could be done off-site, the industry average is currently 3-5%. However, attitudes are changing, as evidenced by MCA, Inc.’s applied research and development of an ANSI-accredited standard for prefabrication (NECA 5-2022).²
• Work Environment Management: Inspired by the Toyota Production System, MCA, Inc. has developed a data-driven framework that enhances project delivery by leveraging inputs from skilled tradespeople. This system focuses on optimizing work, effort, and time through precise measurements (JPAC^® and SIS^®) and a continuous feedback loop.

As these trends are expected to continue, ensuring your current workforce is on board and working to increase the usage of prefabrication, technology, and data will be critical to your company’s future.

Predictions for New Skill Sets

Recognizing how much can and will change quickly, what can you expect for the construction workforce in 2030?

Based on MCA, Inc.’s research and predictions for the Industrialization of Construction®, an expansion in the skill sets required for construction and, most important, an increased focus and familiarity with data-driven approaches to managing projects is expected. The role of the skilled trades will be supported with AI, and building codes and regulations will expand to encompass more than just the physical build to protect consumers in an expanding market.

Industrialization has already provided significant insights into how workforces have evolved over time with several key indicators of change:³

• Shifting employment needs: The types of jobs and the skills required are evolving rapidly as the industry adapts to new technologies and methodologies
• Product evolution: A decoupling of traditional inputs and outputs, leading to more innovative and efficient construction processes
• Labor cost challenges: Inability to compete with historic and current labor cost structures
• Scheduling pressures: Inability to keep up with project schedules and timelines
• Industry consolidation: Increased mergers and acquisitions activity and new types of businesses

These signals underscore the urgency for construction companies to not only adapt, but to also strategically prepare for the future.

The Skills Evolution & Activities

Looking back at industrialization in other industries, the following skills must evolve over time:

• Early industrialization: Basic technical skills and manual labor
• Mid industrialization: Advanced technical skills, problem-solving abilities, and management capabilities
• Late industrialization: Specialized knowledge, data analysis, and strategic thinking

Exhibit 1 presents a model of how skills shift over time during industrialization. Translating this shift to the activities in construction, examples in each sector include:

• Primary activities: Specialized knowledge and expertise from skilled trades
• Secondary activities: Production and production support activities (such as logistics, material handling, prefabrication, and building information modeling), supported by the know-how and supervision of the skilled trades and in support of the final installation quality
• Tertiary activities: Non-production activities (such as customer service, data management, and administrative support) and an increase in industry-wide dedication to and enforcement of standards and limitations

The shift toward a tertiary workforce — one centered on services and information — highlights the increasing importance of knowledge-based skills. With construction currently in step 2 of industrialization, what can the industry proactively do to prepare for a workforce with a mix of skill sets?

Exhibit 2 draws a parallel between construction and the manufacturing industry during the 1920s, which was also in step 2 of industrialization.⁴ At that time, the industry was directly in the crosshairs of secondary and tertiary activities overcoming the primary ones.⁵

In translating this into construction and looking ahead to 2030, the model explains the need to focus on preparing for a future workforce and supporting skill sets for these secondary and tertiary activities.

MCA, Inc.’s CEO Forum, which represents $8 billion in construction revenue,⁶ has been discussing these skills for the past few years. They’ve identified the following key roles and skills to support expanding secondary activities with a smaller number of resources:

• Key roles:
  • Project coordinator: supports data-driven project management
  • Product manager: supports the outcome of construction as a configured product rather than specialized parts and pieces coming together
  • Expanding the organizational structure for Externalizing Work® (beyond just the prefabrication manager) to oversee: production management, process management, quality management with continuous learning and improvement, and logistics and vendor support
• Skills
  • Interdisciplinary workforce
  • Technical aptitude or exposure
  • Data-driven decision-making through the use of statistical process control
  • Critical thinking and adaptability
  • Project management (as more than just a title)
  • Logistics support (e.g., packaging engineering)
  • Interpersonal skills, supporting a dealership model of construction delivery

In addition to these specific skill sets, past CFMA Building Profits articles explained and provided links to various litmus tests to gauge workforce readiness, in terms of:

• Project management⁷
• Prefabrication⁸
• Overall transition to the Industrialization of Construction^®9

These tests assess the ability to transfer and use tacit knowledge with explicit data-driven processes and decision-making structures, while integrating new technologies and adapting to changing demands.