How Tech, AI, And Leadership Are Shaping The Future Of Skilled Trades

As part of the Forbes Leadership Strategy series, Path Robotics Chief Evangelist Joe Onderko was asked his thoughts on #AI #Robotics and its impact on bringing manufacturing back to America. The following article was recently published in?Forbes?Leadership.

Brent Gleeson, Contributor

Jan 16, 2025,07:43 pm EST

Long regarded as the backbone of industries such as construction, manufacturing, and infrastructure development, the skilled trades sector is undergoing a profound transformation. Electricians, plumbers, construction pros, welders, and other tradespeople have long been the unsung heroes of economic progress, yet the industry now faces a daunting labor shortage. According to the U.S. Bureau of Labor Statistics, construction and extraction occupations alone will require 663,500 new workers annually between 2023 and 2033 due to both employment growth and workforce attrition.

Bridging the Labor Gap Through Automation

The mass retirement of Baby Boomers is accelerating workforce shortages across multiple skilled trade sectors, causing skills gaps and culture challenges, and forcing companies to adopt automation as a strategic imperative rather than a mere efficiency booster. Here’s something I found quite interesting. The rise of Robotics-as-a-Service (RaaS) is fundamentally altering the economics of automation, shifting it from a high-risk capital expenditure to a scalable, subscription-based model. A subscription model for robots. Amazing.

"The unique thing about RaaS is that it allows companies to access cutting-edge robotics technologies without the risky, cash-intensive, capital investment previously required. As a result, we’re seeing innovation and scalability like never before in manufacturing and the skilled trades," explains Joe Onderko, Chief Evangelist for Path Robotics.

"Leaders must shift perceptions of automation from something to fear into something workers can get excited about—because they see how their own capabilities can continue to contribute,” explains Aamir Paul, U.S. Country President of Schneider Electric. The challenge, therefore, is not just implementing technology but articulating its value, ensuring that workers understand how automation enhances—not eliminates—their roles.

The Digital Transformation of Skilled Trades

Despite incremental progress, the skilled trades sector lags in digital adoption, creating inefficiencies that cost time and resources. A 2018 survey of U.S. construction executives found that nearly half still relied on manual data collection, an outdated approach that hampers decision-making and slows productivity, according to AEC Business. Beyond the statistics, we’ve witnessed this reality firsthand in every construction organization we partner with for leadership development and organizational transformation. For instance, when implementing our software platform—designed to enhance rapid learning and cross-functional collaboration—we take a measured, phased approach to integration. Rolling out new technology in small, incremental stages is essential to mitigating technology fatigue and preventing disruptions that could inadvertently reduce efficiency. This strategic implementation ensures seamless adoption, empowering teams to leverage innovation without overwhelming existing workflows.

"The pandemic accelerated digitization across industries, yet the skilled trades have not yet found an effective, automated, and widely attainable alternative. AI-powered autonomous systems, combined with the RaaS business model, are finally changing this," says Onderko.

One of the most transformative innovations is the rise of collaborative robots (cobots), which work alongside human operators to perform repetitive, hazardous, or precision-intensive tasks. This human-machine synergy enhances productivity, safety, and quality, giving businesses a competitive advantage over traditional, labor-intensive models. However, these systems still require human oversight, programming, and strategic integration. Aligned and effective leadership at every level of any organization utilizing this type of technology will be critical for success.

Robots are not replacing human workers but filling the labor gap, allowing skilled tradespeople to focus on complex, judgment-driven tasks that technology cannot yet replicate. This shift creates a competitive edge for businesses willing to embrace automation, turning an existential workforce challenge into a growth opportunity. As for engagement, this shift also moves the workforce into less repetitive and more complex roles which increase employee satisfaction.

Attracting the ‘Toolbelt Generation’ Through Innovation

This has been a big topic with our client. How do we continue to attract the younger workforce when they have many other options? But there is now good news. While automation and AI are reshaping the industry, the most pressing challenge remains human capital—skilled workers are still needed to build, maintain, and evolve these technologies. Fortunately, Generation Z is rising to the occasion.

"The college affordability crisis and the rise of alternative career pathways have helped transform Gen Z into the so-called ‘Toolbelt Generation," says Ted Jenkin, CEO and Founder of oXYGen Financial.

Rather than following the traditional college trajectory, many high school graduates are choosing vocational training and trade schools, recognizing that these careers offer faster, more affordable education and stable, high-paying jobs. This trend is evident in surging enrollment across construction, HVAC, and automotive repair programs.

Today's emerging skilled workers embrace technology as a catalyst for their careers. Far from seeing AI-powered automation and RaaS as threats, they recognize these tools as powerful allies that amplify their capabilities. This synergy between human expertise and advanced technology is creating remarkable new career pathways in the trades—opportunities that were unimaginable just a few years ago.

To attract and retain this new wave of talent, business leaders must actively reposition the skilled trades—not as a fallback option, but as a technology-driven, high-growth career path. By leveraging automation, AI, and digital tools, they can create workplaces that are both appealing and sustainable, ensuring that trade careers remain an attractive and viable choice for future generations.

The Future of Skilled Trades: A Leadership-Driven Transformation

The convergence of technological innovation and strategic leadership is reshaping the skilled trades in profound ways. Companies that embrace automation, AI, and Robotics-as-a-Service are not just overcoming labor shortages—they are pioneering a new era of efficiency, scalability, and workforce empowerment.

However, technology alone cannot drive change. Success depends on leaders who communicate the value of innovation, invest in workforce development, and cultivate a culture where human expertise and automation thrive together.

The skilled trades are no longer simply about manual labor—they are evolving into technology-powered industries that will define the future of economic growth. Those who embrace transformation today will lead not only in efficiency and competitiveness but also in shaping a more resilient and dynamic workforce for generations to come.

Writer - Brent Gleeson

Gleeson is the founder and CEO at EXCELR8, 2x bestselling author of Embrace the Suck and Taking Point, and a Navy SEAL combat veteran. EXCELR8 is a talent development and employee retention Saas company. Learn more at EXLR8.ai

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