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The Workforce Crisis in Building Automation

Building Automation Systems (BAS) are the unsung heroes of modern infrastructure, seamlessly integrating HVAC, lighting, security, and more. These systems improve efficiency, comfort, and safety, with technologies like AI and IoT driving innovation. Yet, while the industry rapidly evolves, a growing workforce crisis threatens its potential.

Image dedicated to the ongoing talent shortage in the trades, with specific focus on the electricians

A Shortage That Can't Be Ignored

The skilled labor shortage in trades has reached a critical juncture, deeply affecting building automation. This shortage stems from several factors: the aging workforce, insufficient training programs, and a declining interest among younger generations in trade professions. With baby boomers retiring en masse—30% of the trade workforce by 2030—the gap continues to widen.

Globally, 85 million jobs could remain unfilled by 2030 due to a lack of skilled workers. In the U.S. construction sector alone, an estimated 546,000 positions needed to be filled in 2023, with similar outcomes faced in 2024. Building automation, dependent on skilled technicians, faces severe ripple effects.

The Impact on Building Automation Projects

Delays and Cost Escalations

The labor shortage disrupts timelines, forcing companies to extend project deadlines or pay overtime to a shrinking pool of qualified workers. Increased wages further strain budgets, driving up the cost of construction projects. Meanwhile, the client is forced to carry the financial burden of the ongoing timeline, facing scrutiny from its stakeholders which may lead to reputational damage for all involved.

Compromised Quality and Safety

Understaffed teams often lead to rushed work, increasing the likelihood of errors or subpar installations. Quality and safety suffer, risking equipment malfunctions or safety breaches in critical systems like security and HVAC.

The Backlog Challenge

At Functional Devices, we frequently hear from customers about substantial project backlogs, often citing workforce shortages as the main culprit. These challenges underscore the pressing need for solutions to sustain the industry's momentum.

Building Automation’s Resilient Demand

While new commercial construction is showing signs of softening across the U.S., certain sectors are propelling the demand for building automation systems to unprecedented levels. Among the most prominent drivers are the following:

Data Centers: The Energy Efficiency Mandate

The surge in data center construction, with the North American data center inventory growing by 24.4% year-over-year in Q1 2024, has created a new frontier for building automation. Data centers are energy-intensive, with power demands that rival small cities. Automation plays a pivotal role in optimizing energy use, from precise climate control to real-time monitoring of equipment efficiency. As global reliance on cloud computing, rapid AI adoption, and digital infrastructure grows, data centers are becoming a cornerstone of building automation innovation.

Retrofitting Existing Structures

Retrofitting older buildings with modern automation systems is a growing trend. As businesses and property owners strive to enhance energy efficiency and meet sustainability goals, updating HVAC, lighting, and security systems in legacy buildings offers a cost-effective alternative to new construction. Retrofitting also aligns with efforts to reduce urban carbon footprints by bringing aging structures up to current efficiency standards.

Sustainability and Carbon Reduction Goals

Governments and organizations worldwide are intensifying their focus on sustainability. Regulations promoting energy efficiency and carbon neutrality, such as those outlined in global climate agreements, directly impact the demand for building automation. Automation systems enable real-time energy management, predictive maintenance, and integration of renewable energy sources, aligning with broader decarbonization efforts.

An Unwavering Demand Curve

Despite shifts in construction trends, the need for building automation remains robust. The combined impact of data center growth, retrofitting initiatives, and sustainability imperatives ensures continued demand for skilled professionals and cutting-edge automation technologies. At Functional Devices, we witness firsthand how these trends keep our customers pushing forward, even amid workforce shortages.

Adapting to the Workforce Shortage

Embracing Technological Innovation

Automation and AI are no longer futuristic concepts—they're lifelines. Robotics, advanced software, and predictive maintenance tools optimize resources, reduce manual workloads, and streamline complex tasks. These technologies help companies navigate the workforce crisis while maintaining high-quality standards.

Reimagining Training Programs

Education remains a cornerstone of the solution. Organizations like the Smart Buildings Academy and Siemens offer targeted training programs, equipping the next generation with essential skills for building automation. Expanded investment in these programs could reshape the industry's workforce landscape.

Leveraging Apprenticeships

Apprenticeships and vocational training provide an invaluable combination of classroom instruction and hands-on experience. These programs not only attract new talent but also address the industry’s immediate skill gaps. For example, local initiatives offering dual education and certification in trades are critical to fostering future leaders in building automation..

A Future of Opportunity

The workforce shortage in building automation presents undeniable challenges, but it also highlights opportunities for innovative solutions that empower the industry to thrive. Functional Devices is uniquely positioned to help customers address these obstacles through thoughtfully designed building automation components and a commitment to user-focused innovation.

Simplified Installation for a Complex Industry

Functional Devices’ components are engineered with ease of installation in mind. For a workforce stretched thin, this simplicity translates to significant time savings on the job site, reducing the need for extensive technical expertise during setup. By making installation more accessible, we help bridge the skill gap and support our partners in overcoming workforce constraints.

Industry-Leading Quality for Confidence and Peace of Mind

Our products boast an industry-leading quality rate, ensuring reliability from day one. High-quality components reduce callbacks, minimize maintenance, and prevent costly project delays. For customers facing labor shortages, this reliability means fewer interruptions and greater project efficiency—critical for maintaining momentum in today’s environment.

Direct Access to Engineering Expertise

At Functional Devices, we believe that our customers deserve more than just great products—they deserve a direct connection to the experts who design them. Our customer service and engineering teams are readily available to provide guidance, answer questions, and assist with troubleshooting. This level of support empowers technicians and contractors to resolve challenges quickly, keeping projects on track even when experienced personnel are in short supply.

Customer-Centric Innovation

A key aspect of our approach is customer-centric innovation. We engage directly with the people who use our products—installers, system designers, facilities managers, and more—to understand their evolving needs. By maintaining an ongoing dialogue with our customers, we ensure our solutions are practical, adaptable, and aligned with real-world challenges. This proactive feedback loop helps us deliver products and features that address pressing issues like the talent shortage, while also anticipating future demands in the industry.

Functional Devices is not just a manufacturer; we’re a partner in building automation success. Through our focus on simplicity, quality, and customer collaboration, we’re helping to mitigate workforce challenges and drive the industry forward.

Confidence and Peace of Mind

Functional Devices, Inc., located in the United States of America, has been designing and manufacturing quality electronic devices since 1969. Our mission is to enhance lives in buildings and beyond. We do so by designing and manufacturing reliable, high-quality products for the building automation industry.  Our suite of product offerings include RIB relays, current sensors, power controls, power supplies, transformers, lighting controls, and more.

We test 100% of our products, which leads to less than 1 out of every 16,000 products experiencing a failure in the field.