Leading organisations in the tradie industry have joined forces to produce the Future Tradie Report 2024, that shines a light on the emerging small trade business trends and uncovers the values, ambitions and hurdles facing tradesmen and women today.
The report was developed in partnership with REECE, Middy’s, Dulux, Bluescope, CSR, Buildxact and HazardCo, and produced by Trout and Next.
The research highlights the fact that 38 per cent of tradies under 25 entered their trade with the goal of building their own business. Furthermore, 34 per cent of those who are not current business owners anticipate starting their own enterprise within the next five years. The report noted that the shift underscores a growing trend towards self-employment and business ownership among the younger generation in the trade sector.
The definition of business success varies among tradies – while 33 per cent of respondents view profit margins as the key indicator, 28 per cent consider repeat customers as the true measure of success. According to the study, this view has been influenced by the trade specialisation, with plumbers and builders prioritising profit margins, and carpenters and electricians valuing repeat clientele.
In fact, 100 per cent of the respondents who define success as having a strong business model, use business coaches. More than a quarter of business owners (28 per cent) who used business coaches said they spent more than 30 hours a week on administrative tasks, such as operations, planning, marketing and management. Across the industry, 66 per cent of business owners spend up to 20 hours per week on admin tasks.
Younger tradies are found to be pivoting to new avenues in gathering, as well as sharing, industry knowledge. Tradies aged 35-55 who specialise in niche areas are more likely to use Instagram for industry updates, whereas younger tradies are turning to YouTube, with 22 per cent of tradies aged 18-24 use YouTube to stay abreast of industry trends and product knowledge. Overall, Millenials and Gen Zers are forecasted to make up 75 per cent of the trade workforce in 2033.
Sustainability is becoming increasingly important in the construction industry, with 64 per cent pf tradies under 35 either using or working towards sustainable practices. Innovation is also another rising trend, which is being considered in handling the housing problem. In fact, 29 per cent of tradies are confident in adopting new building methods to address this issue.
Meanwhile, the trend towards commercial work is expected to rise, with 40 per cent of tradies under 45 predicting a shift from residential to commercial projects over the next five years.
Curating a good culture in the trade industry is also notable among tradies. A quarter of tradies under 45 believe that a strong team culture is vital to their company’s success, compared to just seven per cent of older tradies. Personal development is also a priority for younger tradies, with 30 per cent of those aged 18-24 seeking coaching for personal growth, 15 per cent focusing on entrepreneurial skills, and another 15 per cent aiming for a better work-life balance.
The report noted that many companies see this as a mindset shift, with 27 per cent of tradies who prioritise a positive team culture viewing mistakes as learning opportunities, which they believe is essential for fostering a supportive and productive work environment.
