America’s largest counties have undergone profound transformation in recent years. The new hybrid normal ushered in by COVID freed many employees from the grind of a five-day-a-week commute. And with fewer workers needing to put in daily face time at the office, many left big cities in favor of smaller towns and suburbs. This, in turn, accelerated domestic relocation trends which had already begun to emerge before the pandemic.
Why do moving trends matter? The impact of state population migration, both individually and in combination with other factors, can significantly influence various aspects of the Trades Services industry.
Demand for Trades Services
Population migration can lead to shifts in population density across states. When a significant number of people move into a new state or region, it can increase the demand for housing and commercial buildings, which, in turn, drives the need for various trades services. More residents and businesses require a wide range of services, such as construction, electrical work, plumbing, HVAC solutions, and more, to accommodate their needs. This surge in demand presents trades companies with expanded opportunities to increase their installations, replacements, repairs, and maintenance services, leading to unexpected levels of growth.
Climate Variation
Population migration, alongside the diverse climates across states, significantly influences the demand for trade services. Regions characterized by extreme cold or hot climates often necessitate unique solutions like specialized heating or cooling systems. Specifically, when individuals transition from cooler climates to hotter areas, their personal preferences generate increased demand as they grapple with the challenges of adapting to the new climate (e.g., relocating from SoCal to Phoenix). This migration-driven demand arises from the need to find suitable solutions tailored to the contrasting climates. Their limited tolerance for higher temperatures may require the adoption of new and potentially costlier solutions to ensure comfort and adjustment. The expanding population within a state, in combination with climate conditions, shapes the demand for goods and services, particularly in areas such as housing, infrastructure, and essential needs. Climate conditions further shape these demands, as specific regions may necessitate specialized solutions to accommodate the local climate.
Innovation and Technology
The movement of population often results in increased urbanization and the development of smart cities. As cities grow, there is a demand across all trades for cutting-edge technologies and innovative solutions. For example, the HVAC sector may see a need for smart thermostats, energy-efficient systems, and automation. Similarly, other trades must also keep pace with emerging market trends. Whether it's construction, electrical, plumbing, or other trades, staying updated with the latest technologies and advancements is crucial to maintain competitiveness in these evolving markets. Adapting to the demands of smart cities requires a continuous commitment to incorporating new technologies and innovative approaches across all trades.
Labor Force and Skills
Population migration exerts a notable influence on the Trades’ labor force. Initially, as a population swells and demand surges, there may be a lag in acquiring sufficient skilled professionals, making it more challenging to fulfill service requirements during periods of high demand. However, over time, the relocation of more people to specific regions leads to an increased availability of skilled workers and professionals and the labor force begins to improve. This upsurge enhances the accessibility and quality of labor services in those areas. Trade professionals, families with a trade professional member, business owners, relocate or collocate to a preferred migration state and increase the skilled professional pool. Conversely, states experiencing significant outmigration may encounter labor shortages across multiple trades, posing potential difficulties in meeting diverse service demands. The movement of the population directly impacts the supply and availability of skilled workers across all trades, thereby influencing the level of expertise and the capacity to satisfy the needs of distinct regions.
Economic Growth and Investment
The migration of population can act as a driver for economic growth in specific states, resulting in heightened construction and commercial development across all trades. This upsurge in growth offers enticing prospects for various trades to secure contracts for large-scale projects, thereby fostering their expansion and overall success. With an increasing population, there is a greater demand for infrastructure and services to support the growing communities. Whether it's construction, electrical work, plumbing, HVAC, or any other trade, the inflow of population and subsequent economic development create a flourishing market with abundant opportunities for tradespeople and businesses to thrive.
Population migration significantly impacts trade services, driving demand for housing, commercial buildings, and specialized solutions. Adapting to diverse climates, embracing innovation, and securing skilled labor are vital for success in this dynamic market. With individuals relocating and requiring various trade services, the industry must stay updated and prepared to meet evolving needs. By understanding the influence of population changes, the Trades can thrive in this ever-changing landscape. Don't miss the Special Report on US Population Changes powered by Titan Intelligence - read it now.
Sources:
https://www.pods.com/blog/moving-trends
https://www.nationalvanlines.com/national-van-lines-domestic-migration-report/
https://www.unacast.com/post/united-states-migration-patterns
https://www.azeconomy.org/2023/04/economy/maricopa-county-leads-the-nation-in-population-growth/
https://www.census.gov/library/stories/2023/03/domestic-migration-trends-shifted.html
https://www.rent.com/research/migration-nation/
https://www.redfin.com/news/housing-migration-trends-q1-2023/
https://www.forbes.com/home-improvement/moving-services/2023-moving-statistics-trends/
