AI/ROBOTICS vs LABOR

I hope you have had a chance to visit our website and read our most recent blog “Labor Crunch to Tech Catalyst”.  In the blog I expressed how more questions are arising while researching the opinions and expectations of others about how AI/Robotics will affect the AEC Community.  Experts claim productivity will rise with automation and positive safety outcome improvements, which only raises more questions, such as:

• How will wages, job availability and work conditions be changed in certain sectors?

• What trades will be most exposed to automation?

• How will work conditions change in certain sectors?

What will be the impact on wages, job availability and work conditions?

Experts say they are expected to change significantly due to robotics and automation. In the short term, sectors adopting automation are seeing upward wage pressure. 

Construction wages increased about 21% between 2021 and 2024 due to high demand and persistent labor shortages, outpacing broader occupational wage growth. However, employment gains have been smaller than wage increases, indicating fewer new jobs are being created despite increased pay, affecting job availability. 

Studies show manual/field labor will significantly be affected.  Automation could eventually replace or modify up to 49% of all construction tasks, with roles like operating engineers, carpenters, and laborers seeing the greatest risk of reduction or transformation.​ Experts claim that automation potential is 35% for laborers, 50% for carpenters, 42% for electricians, and up to 88% for operating engineers. 

Most forecasts suggest job losses in some manual and repetitive positions, but these losses will be partially offset by growing demands for roles in robot operation, maintenance, programming, BIM, and data analysis. Net global job creation is expected, but the composition of jobs will change significantly toward technical and supervisory functions.​

What trades will be most exposed to automation?

Currently sectors most exposed to automation are showing wage growth roughly twice as fast as sectors least exposed because skills that complement technology are in higher demand.​ However, traditional blue-collar labor costs are declining as a share of total construction costs.   Compensation is shifting towards technically skilled roles and capital investment.​ This may lead to wage polarization: meaning technical and highly skilled workers can expect wage premiums, while displaced workers moving into lower-skilled service or support roles may face decreased pay.​

Automation and robotics are prompting a shift in employment.  While automation may cut some "good middle-class" manual job opportunities over the next generation, it also creates new career pathways for those willing to up-skill in robotics oversight, programming, and digital construction management.​  Companies are actively investing in up-skilling to help current employees move into higher-paying, tech-focused roles, reducing the time and cost to hire new employees and reducing the time to acquire these new skills from years to months in many cases.​ 

 How will work conditions change in certain sectors?

From a global perspective, South Korea, Singapore, China, Japan, Germany, and several Scandinavian nations such as Sweden, Norway, and Denmark.​ are already seeing a significant workforce shift due to robotics adoption. North America is lagging behind.

Asia-Pacific Leaders

• South Korea has become the first country to replace over 10% of its workforce with robots, boasting the world’s highest robot density at more than 1,000 robots per 10,000 employees. Singapore and China closely follow, each embedding automation into national strategies to address labor shortages and economic competitiveness.​

• In five ASEAN countries, automation created jobs for about 2 million skilled workers but displaced 1.4 million low-skilled workers from 2018 to 2022, illustrating both positive and disruptive effects.​

•  Japan’s government actively supports robotics in sectors from elder care to manufacturing, helping stabilize industries as its population ages.​

Europe: Human-Centric Automation

• Germany’s “Industrie 4.0” model uses robots to augment, rather than replace, human workers and offers extensive upskilling programs, limiting outright displacement. Over 60% of German manufacturing firms now provide retraining tied to automation.​

• Scandinavian countries pair high robot adoption with strong unions and social safety nets, helping displaced workers retrain and transition into new sectors such as healthcare or tech. Denmark, for example, offers up to 90% of former salary during retraining.​

USA & Canada

• The U.S. and Canada lag in robot density but are ramping up adoption, with large regional disparities and concentrated impacts in sectors like automotive manufacturing and some sectors of construction.​ 

All these countries exemplify accelerating, but divergent, workforce transitions tied to robotics, with outcomes dependent on national retraining policies, union protection, and social support systems.​

Robotics have begun to significantly affect construction labor in the USA by improving efficiency, reducing physical strain, and helping address ongoing labor shortages. While robots commonly take over repetitive, physically demanding, or dangerous tasks, this has led to both productivity gains and some displacement of jobs, especially in roles that are highly routine or manual.​

Facing an acute shortage of skilled construction workers, companies are leveraging robots such as semi-autonomous drilling units, bricklaying robots, and drones to accelerate project schedules and reduce dependence on manual labor. These technologies have helped firms complete labor-intensive tasks several times faster than human crews, improve safety, and allow workers to focus on more strategic roles on-site.​

Studies show that increased robotic adoption can lower wages for construction workers, particularly in regions or sectors where repetitive manual work is prevalent. Research estimates that for every robot added per thousand workers, local wages may decrease by 0.25% to 0.50%. The most affected groups are often the less-educated or younger workers, and job losses are notably concentrated in positions involving repetitive production tasks.​

Unionized sectors have seen slower adoption of robotics compared to less-unionized regions. Although automation may reduce bargaining power for some unions and displace jobs in certain trades, it also boosts efficiency and safety, supporting jobs that are increasingly complex or technology-driven. In parallel, wage growth in construction is driven both by high demand and the evolving nature of work, with more technological skills required for advanced roles.​

While the widespread use of robotics is still in early stages, rapid adoption is occurring in selected areas such as material handling, layout, site surveys, and prefabricated construction. Pilot programs are increasingly transitioning into routine applications, signaling a notable shift in workforce needs and jobsite operations.​ Which brings us to one final question for this Blog.

What skills will construction workers need as robotics are adopted?

Construction workers will increasingly need a blend of digital, robotic, and traditional trade skills: the most valuable workers will know how to operate, troubleshoot, and coordinate robots while still understanding field conditions, safety, and construction workflows.​

Core technical skills

• Basic robotics and automation: familiarity with sensors, control systems, and how robotic platforms execute tasks (e.g., layout, drilling, earthmoving, inspection).​

• Operation and monitoring: defining tasks, setting work zones, running autonomous cycles, and intervening when systems encounter exceptions (as in Robotic Equipment Operator and ABB operator trainings).​

• Troubleshooting and maintenance: mechanical and electrical aptitude to keep robots running, including diagnosing hardware faults, replacing components, and understanding hydraulics and power systems.​

Digital and data skills

• CAD/BIM literacy: ability to read digital models and plans, understand how BIM or CAD files drive robotic paths, and make field adjustments when reality diverges from the model.​

• Surveying and positioning: working with GPS, total stations, and construction layout software to set up reference frames and guide autonomous equipment.​

• Basic data skills: using tablets and software dashboards to review productivity, error logs, and safety or efficiency metrics tied to robotic operations.​

Safety and regulatory competence

• Advanced safety protocols: lockout/tagout, emergency stop systems, geofenced work zones, and co-working rules for humans and robots are becoming baseline expectations on robotic jobsites.​

• Certification culture: OSHA-30–level safety plus new micro‑credentials in construction robotics, automation, and equipment operation (e.g., REO programs and university/CE certificates) will matter more for employability.​

Evolving soft and trade skills

• Problem-solving and adaptability: diagnosing whether an issue is in software, hardware, site logistics, or design, and then adjusting workflows accordingly.​

• Collaboration and communication: coordinating among field crews, VDC/BIM teams, and technology vendors, which is highlighted as essential in general robotics skill frameworks.​

• Deep trade knowledge: legacy skills like reading drawings, understanding constructability, and recognizing jobsite constraints remain critical because robots depend on workers who understand how work should be sequenced and what “good work” looks like in the field.​

The long and the short of it is........We better get ready, because the Robots are coming!