Artificial Intelligence (AI) has been making waves across many sectors, from healthcare to finance, and now it is starting to influence the skilled trades industry. AI technologies are reshaping how the trades are carried out, offering both challenges and opportunities for workers in the field and staff in the office.
1. Automation and Efficiency in the Trades
In construction, AI tools help automate design processes, estimate material needs, and optimize building methods, making projects more cost-effective and efficient. Drones equipped with AI are also used for site inspections, mapping, and surveying, allowing for safer and quicker assessments of job sites.
2. AI-Driven Tools for Skill Enhancement
AI is not only automating certain tasks but also helping to elevate the skill sets of workers. Augmented Reality (AR) and AI-powered diagnostic tools are revolutionizing the training process in the trades. For instance, AR glasses equipped with AI can project digital information, instructions, or diagrams in real time, guiding workers through complex tasks like plumbing repairs, electrical installations, or machinery maintenance. This can significantly shorten training times and improve the quality of the work.
Additionally, AI software is increasingly used to predict and diagnose issues in machines and systems. In industries like plumbing or HVACR, AI-based diagnostic tools can analyze data from sensors and predict mechanical problems before they become critical. This allows skilled workers to perform proactive maintenance, minimizing downtime and improving efficiency.
3. Workforce Shortages and the Need for Reskilling
One of the major concerns in the skilled trades is the ongoing shortage of workers, particularly in certain regions and sectors. AI is seen as a potential solution to help bridge this gap. By automating routine tasks, AI can reduce the demand for low-skilled labor, allowing workers to focus on more complex, specialized aspects of their jobs.
However, this shift toward AI-powered tools and systems also means that workers in skilled trades will need to adapt to new technology. AI’s growing role in these industries calls for a focus on reskilling and upskilling. Tradespeople will need to acquire new knowledge in robotics, data analysis, and AI systems to stay relevant in the job market. As the industry evolves, employers will increasingly look for workers who are comfortable with both their traditional craft and the digital tools that now complement their work.
4. AI in Safety and Risk Management
AI is playing an increasingly important role in improving safety within skilled trades. In high-risk environments, such as construction, AI-powered sensors and wearables are being used to monitor workers' health and safety in real time. For example, AI can predict potential safety hazards by analyzing data from environmental sensors or worker movements and alert supervisors to take corrective actions before accidents occur.
AI is also being used to develop predictive maintenance systems that can monitor the condition of equipment, ensuring it is always in good working order. Predictive analytics can help reduce downtime, avoid costly repairs, and ensure that machinery is operating safely, which in turn protects workers.
5. Ethical Concerns and Job Displacement
While AI brings many advancements to the skilled trades, there are also concerns about job displacement. Automation may lead to the reduction of some manual tasks, which could put certain jobs at risk. For example, machine learning algorithms may be able to predict mechanical issues more accurately than a human technician, potentially reducing the need for human labor in certain diagnostic roles.
That said, the complete replacement of skilled trades by AI is unlikely in the near future. Human expertise, intuition, and problem-solving abilities remain essential in many of these professions. Moreover, AI is expected to work alongside workers, complementing their skills rather than completely replacing them.
However, these technological advancements mean that workers in skilled trades must continuously evolve with the changing landscape. Maintaining a balance between embracing AI innovations and preserving human expertise will be crucial in avoiding significant job losses.
6. The Future of AI in Skilled Trades
As AI continues to develop, it is likely to play an even larger role in skilled trades. The future of these industries will likely involve a combination of AI-powered tools and human workers. As tradespeople become more familiar with AI technology, they may work more collaboratively with these tools, leading to improved productivity, safety, and quality of work.
Additionally, AI could unlock new opportunities within the trades sector. For example, AI could assist in creating smarter, more sustainable building designs, improving energy efficiency, and reducing environmental impacts. The integration of AI in trades might also encourage innovation, as workers and businesses explore new ways to apply these technologies to improve their craft.
Conclusion
AI's impact on skilled trades is already noticeable, offering both benefits and challenges. From automating routine tasks to enhancing worker safety and improving training, AI is helping to reshape the future of these industries. However, for AI to have a positive impact, it is crucial for workers to be equipped with the skills and knowledge to integrate new technologies into their work. The future of skilled trades will likely be a blend of human expertise and AI-powered tools, leading to more efficient, safer, and innovative ways of working. The key to navigating this transformation will be finding a balance that respects traditional craftsmanship while embracing technological advancement.
Wednesday, February 12, 2025 | By Cate Charron, Indianapolis Business Journal
INDIANAPOLIS - The creation of a new state office dedicated to improving the small-business environment in Indiana was passed by members of the House Tuesday.
House Bill 1172 would establish the Office of Entrepreneurship and Innovation, which would manage several new and existing programs to support small business owners and aspiring entrepreneurs.
Bill author Rep. Jake Teshka, R-North Liberty, said the office would consolidate state government programming to make it more accessible for business owners. The office would be a standalone agency and housed under Secretary of Commerce David Adams, who also oversees the Indiana Economic Development Corp., or IEDC, the Department of Workforce Development and Indiana Destination Development Corp.
Several lawmakers and state leaders, including Gov. Mike Braun, have said the IEDC is too focused on bagging major company investments and development is overly concentrated in certain areas. Braun has repeatedly said he wants to spread economic development to all four corners of the state.
Teshka alluded to these concerns Tuesday on the House floor. “This isn’t about adding an additional layer of government. It’s not about bashing the IEDC,” he said. “It’s about a focus and a renewed intentionality on our state’s best and brightest innovators and entrepreneurs.”
The bill has broad support from the business community, including the Indiana Chamber of Commerce, Indy Chamber of Commerce, the Indiana chapter of the National Federation of Independent Business and individual business owners. The bill mirrors one of the governor’s detailed priorities too, though Teshka previously told IBJ he drafted the bill before learning about his agenda. Teshka said he has since worked with the Secretary of Commerce’s staff to update the language.
The Governor’s Office included funding for the new office in its budget proposal. It would need about $1.8 million in state funding in its first year for staff salaries and operations, according to the bill’s fiscal note. That amount does not include program funding. The bill was passed 85-7 with bipartisan support Tuesday. It now moves to the Senate for consideration.
The seven opposing votes hinged on concerns of further expanding government. In a commerce committee, several Republicans pushed for the office to have a sunset clause, so lawmakers would be required to return to evaluate whether the office is impactful after a certain date. Approved amendments have not included such language.
One amendment that did pass rolled back some of the bill’s specificity. It cut requirements for specific programs currently hosted under the IEDC to be moved to the new office, and it scrapped requirements to produce a report about the state of entrepreneurship. “The administration is trying to work on getting their feet underneath them and wanted some flexibility,” Teshka said on the floor Tuesday.
Rep. Heath VanNatter, R-Kokomo, questioned whether it would be create redundancy, given existing efforts. The Indiana Small Business Development Center has 10 regional offices throughout the state and provides services similar to what proposed in the bill. Josh Richardson, Secretary Adams’ chief of staff, during a Jan. 29 hearing that this office represents a consolidation of services rather than an expansion. Instead, he said pulling out programs into this office would inspire more efficiency.
“The real key here,” Richardson said, “is just making sure that we’re providing streamlined services for Hoosier entrepreneurs and businesses to grow and to be successful in Indiana.” If the bill is passed by the General Assembly and signed by the governor, the earliest the office can begin operating is July 1.
You can also read it at BizVoice Magazine - Indiana Chamber Bimonthly on Business
In today's fast-paced and ever-changing business landscape, small and mid-sized companies often face unique challenges when it comes to managing human resources (HR). From recruiting top talent to ensuring compliance with labor laws, maintaining an efficient HR operation can be a resource-intensive task. This is where the concept of fractional HR comes in as a game-changer, offering a cost-effective solution to meet the HR needs of growing businesses.
Fractional HR refers to the practice of hiring an experienced HR professional or team on a part-time or contract basis, rather than having a full-time, in-house HR department. This model allows businesses, particularly those in their early or growth stages, to access the expertise and strategic leadership of seasoned HR professionals without the overhead of a full-time hire.
Fractional HR services can cover a range of HR functions, including:
By engaging fractional HR providers, businesses can scale their HR operations as needed, while only paying for the services they actually require.
One of the biggest advantages of fractional HR is cost savings. Small to medium-sized businesses (SMBs) typically don’t have the budget to hire full-time HR staff or build an HR department from scratch. By leveraging fractional HR, businesses can get access to expert HR services for a fraction of the cost, making it a budget-friendly option for growing companies.
HR professionals with years of experience can offer valuable insights that might be difficult to find in-house, especially for smaller companies. Fractional HR providers bring expertise in various areas of HR—from navigating complex legal compliance to optimizing recruitment strategies—allowing businesses to make more informed decisions.
As business needs evolve, so too can the HR services provided. Whether you’re expanding into new markets, hiring new employees, or changing your organizational structure, fractional HR allows businesses to scale their HR needs accordingly. You can engage fractional HR for specific projects or for ongoing support, depending on the situation.
Outsourcing HR to fractional professionals allows business owners and leaders to focus on the core aspects of their business—such as product development, marketing, and sales—while still ensuring HR functions are handled efficiently. This reduces the administrative burden on internal teams, allowing them to prioritize high-impact tasks.
HR compliance is a crucial area where many small businesses fall short, often unintentionally. HR regulations are constantly evolving, and staying up-to-date with the latest laws is time-consuming. Fractional HR providers are skilled at navigating compliance, reducing the risk of legal issues related to employment law, wages, benefits, and workplace safety.
Fractional HR allows businesses to tailor the HR services they need based on their specific goals and challenges. Whether it's crafting a company culture or creating employee training programs, fractional HR services can be customized to suit the unique needs of your organization.
Before engaging a fractional HR provider, assess your business’s HR needs. Are you struggling with hiring, employee management, or benefits administration? Having a clear understanding of your specific needs will help you find the right fractional HR partner.
It’s important to select a fractional HR provider with the experience and expertise that aligns with your business goals. Consider their track record, industry experience, and ability to scale services as your company grows.
When working with a fractional HR professional, clear communication is key. Establish expectations regarding deliverables, timelines, and key performance indicators (KPIs) to ensure that both parties are aligned on the objectives of the engagement.
Just like any partnership, regular communication and feedback are important. Monitor the effectiveness of the HR services provided and adjust the scope as necessary to ensure you're getting the most value from your investment.
Fractional HR is particularly beneficial for:
Fractional HR is an innovative solution that enables businesses to tap into expert-level HR support without the financial burden of hiring a full-time HR department. For small and mid-sized businesses looking to streamline HR processes, ensure legal compliance, and foster employee engagement, fractional HR is an excellent way to scale operations effectively while focusing on growth. By leveraging the expertise and flexibility of fractional HR, businesses can position themselves for long-term success without the overhead and administrative headaches.
Whether you need help with recruitment, compliance, or strategic HR planning, fractional HR offers the right mix of experience, cost-efficiency, and scalability to meet your evolving business needs.
by Beth Rovazzini - Director of Revenue for Sandler DTB and Owner of B&W Plumbing Heating Cooling and Drains
Have you ever stopped to consider whether customer service should be treated as an administrative/office function or a vital component of your sales strategy? The answer might surprise you. Most companies generate the bulk of their revenue from existing customers. Yet, how many businesses truly have a consistent and effective system in place to nurture these relationships?
Keeping Your Existing Customers
How do you keep your existing customers engaged and satisfied? Do you have a systematic approach for showing appreciation? A simple gesture, like a thank-you note or exclusive offer, can go a long way in building loyalty. If your customers feel valued, they are more likely to stay with you and continue using your services.
Offering Additional Services
Do you have a strategy for introducing your customers to services they aren’t currently using? Many companies overlook this opportunity, yet it’s a proven way to increase revenue. Educating your customers about the full range of your offerings shows that you understand their needs and are ready to meet them.
Reconnecting with Past Customers
What about previous customers who have drifted away? Do you have a system for reaching out to them? A well-timed call, email, or even a postcard can remind them of the value your company provides and encourage them to return.
The Frustration of Being Overlooked
Think about how you feel when your cable provider or another company offers massive discounts to attract new customers while providing nothing for their loyal, long-time customers. It’s frustrating, isn’t it? Don’t let your own business fall into that trap. Treating your existing customers as a priority can significantly impact your bottom line.
The Power of a 10% Increase
What if you increased revenue from existing customers by just 10%? Would that be significant for your business? Most companies already have all the contact information for their current and past customers. The real question is: what are you doing with it?
The Customer Service Mindset
After running a plumbing and heating company for over 35 years, I can tell you this—when you start looking at customer service as a sales function, a funny thing happens: your sales increase. Customer service is not just about solving problems or answering questions; it’s about building relationships, fostering trust, and creating opportunities to serve your customers better.
If you don’t have a system for retaining customers, showing appreciation, or reactivating past relationships, let’s talk.
Leave it to the Gen Zers to pull another surprise out of their bags. According to recent reports, Gen Z is showing interest in skilled trades careers, shifting away from the current emphasis on corporate work. Globally, blue-collar jobs and skilled trades are treated as the inferior option to building a career in engineering or HR, and this attitude has significantly reduced the number of individuals interested in working a hands-on job.
The unlimited power of social media has now revived Gen Z’s interest in skilled trades, bringing us back full circle to witness a renewed interest in this field. Many Gen Zers are skipping college in favor of trade schools, and considering the price of college education and the burden of student debt that many Millennials are left with, it appears to be a much better economic choice for many.
An Increasing Number of Gen Z Workers Are Turning to Skilled Trades
The Future of Skilled Trades Report from technology company Thumbtack found that 55% of Gen Z is now considering a career in the skilled trades and the number goes up to 72 percent for Gen Zers who already have a college degree. The rise in Gen Z’s interest in the skilled trades has been tied to social media, particularly TikTok and Instagram. Short-form video content often showcases workers in these settings and has drawn the attention of the young population, enough that they are currently considering building their future in these areas.
Social media platforms are the primary indicators of what’s “trending” in the present day, and while this is typically seen as a negative phenomenon, many positive changes can be observed as well. Openly discussing mental health and normalizing self-care for the average consumer has been one of the primary benefits of social media so far, but Gen Z’s interest in blue-collar jobs is just as noteworthy.
The study also found that there is no longer a stark gendered difference in the preference shown by Gen Z towards skilled trades. Women from this age group show almost as much interest in these professions as men do—52% vs 57%. Skilled trades also appear to offer much greater job satisfaction compared to other career paths like lawyers and doctors.
Admittedly, this shift likely has to do with the rise of workers in these fields filming content at their jobs and showcasing the perks of their professions. Social media content in relation to blue-collar jobs has showcased how they offer everyone the opportunity to feel more empowered and give them the freedom to express themselves more comfortably compared to a stiff corporate setup.
An NPR report from back in April spoke to different individuals who have made their careers honing their skills in the trades, and these workers explained that they were able to start their own businesses after gaining experience working for a few years. The freedom to “call the shots” is not something a desk job can guarantee.
The shift towards a more positive perception of these trades also has to do with economic security, and it isn’t limited to Gen Z. Parents of these workers, nearly 80% of them, also state that learning a skilled trade could be a better path towards a stable job that pays well in the long run. Many of these parents still encourage their kids to get a four-year college degree as it provides a sense of security they can fall back on if they need it.
College degrees started as a way to gain a more “reputable” job and it has continued as a status symbol or a milestone that we continue to tick off of a checklist. For many years now, the real-world relevance of a college degree has lost its shine. Many workers fail to find employment on the basis of their degrees and find themselves working in an unrelated profession.
Paying for college has also become increasingly expensive and many no longer feel the burden of student loans is worth it. More frequently, Gen Zers are skipping college and opting for trade schools instead.
Blue-collar jobs and Gen Z do not appear to be an ideal match-up at first, but this section of the population has never been one to shy away from trying something new. Over the last few decades, corporate jobs have been seen as the more stable path toward finding long-term success but that is no longer true. Skilled trades come with their own list of challenges but despite that, they have a lot to offer.
There has been a very noticeable shortage of workers in these alternate professions and even if the interest does come from social media, Gen Z workers entering skilled trades could be good for the workers and the economy as a whole. Jobs that require a college degree are already inundated with workers trying to make it in the field and this spread of resources could be just what we need as a community.
By Leslie Bonilla Muñiz, Indiana Capital Chronicle
Source: Gov.-elect Braun puts forth first-term agenda – Inside INdiana Business
INDIANAPOLIS - Indiana Gov.-elect Mike Braun on Tuesday pitched his first policy agenda since his November electoral victory—largely reemphasizing his commitment to campaign promises.
Braun’s “Freedom and Opportunity Agenda” focuses on tax relief, government efficiency, economic development, public health and quality of life factors like public safety, energy affordability and water cleanliness.
Taxes
A news release indicated Braun wants to bring “historic” tax relief to Indiana families.
“As Hoosiers contend with inflation, the State should provide comprehensive tax relief that protects taxpayers from runaway property taxes, supports retirees and families with targeted relief, and reduces the burden on Main Street businesses,” it read.
The agenda includes limiting property tax increases 2%-3% annually and “resetting homeowner bills” to pre-pandemic levels.
But the state can’t get too heavy-handed. It must abide by a decades-old ruling declaring Indiana’s previous tax system, which wasn’t based on the market, unconstitutional.
Braun also wants to ditch state taxes on retirement income, establish farm savings accounts, change the formula used to assess farmland for property taxes, and introducing new sales tax holidays on things like back-to-school supplies.
Efficiencies
Braun leaned into his business roots in the agenda’s second priority: efficiency.
“Unlike the private sector, where real economics incentivizes effectiveness and lower overhead, government at every level has grown unchecked,” the agenda reads.
It goes on to suggest new performance metrics and trims of “unnecessary or underperforming” positions and programs. Indiana should also review its regulations to cut outdated requirements and lighten the load for agencies, it says.
Braun also hopes to get agencies digital: automate eligibility verification procedures for veteran health care, streamline document processing at the Bureau of Motor Vehicles and create a one-stop portal for farmer services.
He’s already gotten started on another bullet point in the list—last month, Braun unveiled plans for a reorganized cabinet focusing on eight policy areas.
He also hopes to present a balanced budget that “addresses the state’s deficit while reforming Medicaid spending,” per the release.
Economy
Braun’s agenda views Indiana’s future prosperity as dependent on educating and developing a skilled workforce.
He proposed implementing universal school choice, although Indiana is almost there. A recent hike in the income requirement means all but the state’s wealthiest families qualify for vouchers to private schools.
The release also includes increases in teacher base pay, new performance-based pay, a focus on better literacy and math skills, and a dedicated school safety office.
Braun also wants to push workforce development, with: a new workforce investment tax credit, a “restructured” Indiana Economic Development Corp, and more regional cooperation for creating jobs.
Health
Braun, who was active in the health care arena in the U.S. Senate, hopes to take aim at high prices and increase accessibility—while promoting industry innovation.
Indiana faces expanding Medicaid costs and lower-than-expected revenues, however. Braun’s team said there weren’t plans to cut services. Instead, the gov.-elect hopes to find efficiencies to save money.
Though states have little control over private employer-employee insurance deals, Braun’s team said he could still impact costs with more aggressive price transparency requirements, prior authorization reforms and pharmacy benefit manager regulations.
The agenda also highlights rural health, calling for new incentives to draw health care facilities to rural areas—including obstetrics access—and better telehealth coverage.
And it emphasizes continued coverage of pre-existing conditions, proposed a new primary care access revolving loan funding to support new facilities, and mental health treatment reforms intended to lift weight from the criminal justice system.
Other quality of life
Braun continued his focus on public safety in Tuesday’s agenda.
“Hoosier families and communities deserve to know that their safety and security are the top priority of the state government,” it reads. “In today’s interconnected world, national issues like illegal immigration and the flow of illegal drugs like fentanyl and methamphetamine have a real impact on communities across the state and country. Because of the complexity of modern public safety, it is imperative that the State supports our law enforcement officers in the line of duty.”
Law enforcement offices could win higher salaries and better benefits packages, more training opportunities and non-discretionary minimum bail requirements for violent crimes. Braun also promised to protect qualified immunity.
He also hit at drug trafficking and unauthorized immigration, with proposals for stronger drug distribution penalties, more interdiction powers for state police, sanctuary city ban enforcement and more.
The agenda concludes with a push for lower energy costs.
“Over the last decade, Hoosiers’ electricity bills have increased dramatically, outpacing the national average,” it says. “Indiana needs strong leadership to navigate these challenges and improve energy accessibility. The Braun administration will ensure that the State has enough affordable and reliable electricity to meet the needs of residents and attract new economic development.”
Braun reemphasized commitment to an “all-of-the-above” energy strategy, deregulation and still-development small modular nuclear reactor technology.
His team expects combine executive actions, agency-level reforms and legislation to accomplish his priorities, according to the release.
The Indiana Capital Chronicle is an independent, not-for-profit news organization that covers state government, policy and elections.
