AI-fuelled plumbing boom is luring in private equity
AI has made trades like plumbing alluring not just to jobseekers, but private equity investors, writes Susannah Streeter in today’s Notebook
Plumb jobs in the AI era
Anyone with teenagers revising for exams or choosing a college course will already be fretting about how to insulate them from AI disruption. Hannah the Plumber, now famous as the latest Green Party MP, will find herself in the corridors of power rather than under kitchen sinks in the future. But her career choice was a resilient one, especially as she’s also added plastering to her skills.
Plasterers, alongside plumbers and electricians were recognised by Microsoft as some of the UK’s safest professions, in the world of machine learning. While AI tools are disrupting design, logistics and project management, they will have limited impact in environments relying on dexterity, adaptability and hands-on expertise.
These jobs are not just stable income generators but trades that have stood the test of time. Look up, and almost every ceiling will demonstrate the skills of centuries of work. My grandad was a master plasterer and recalled one of his best jobs, as part of a team that restored ornate ceilings in the Palm Court in Bristol’s Royal Hotel. I still pop in and gaze in wonder at their work.
…and private equity
Meanwhile in private equity, the ‘trades’ are also increasingly sought after as investments continue to build in the net zero transition and demand for affordable housing rises. The latest data from Pitchbook shows that the heating, ventilation and air conditioning industry experienced unprecedented private equity engagement in 2024, with 55 deals recorded – a 72 per cent increase on 2023.
The purchase of repair and emergency services giant Homeserve was one of the biggest in this space, acquired by Brookfield Asset Management.
It’s another example of a listed company going private, but experienced investors can get a slice of the PE action, given that Brookfield Private Equity fund is now available to add to portfolios on the Wealth Club platform.
Mountain opportunities
The entertainment and leisure sectors also look more resilient in the face of AI disruption. While a robotic ski lift attendant can easily sweep the snow from under moving chairs, it wouldn’t be able to pull my 11-year-old from a snowdrift after she disembarked badly, make her laugh and get her back on the slopes. While AI can make music, only a real DJ can lure skiers into dancing in a blizzard, halfway up a mountain. Going on holiday with trance loving teenagers has certainly livened up my après ski experience. In our leisure time, many of us don’t want perfection, we crave creativity, a bit of chaos and shared experiences.
Day rave demand
The need for meaningful connections and escapism in such a fractious world is boosting the popularity of rave culture. It’s also providing a lifeline for struggling venues. City bars used to be deserted at the weekend, but not any longer. Fat Tony’s day rave at the Anthropologist near the Bank of England was a sellout on Saturday. While Gen Z occupy warehouses on the city’s outskirts all night, it’s Gen X keeping bars and clubs busy during the afternoon.
Day raves are in demand right across the UK as empty nesters rediscover free time, friends and the groove many of them left behind in the nineties. It’s another pocket of resistance against AI, with DJs, dancers, mixologists and bouncers all essential to keeping the vibes alive. I’m first in the queue.
Funding flows for startups
Sentiment was already fragile given evidence that the AI steamroller looks set to take out swathes of jobs across workforces. So, it’s even more important that new ventures in growing industries have the funding to succeed and it’s encouraging to see a surge of investment into Venture Capital Trusts as we head towards the tax year end. Investors have ploughed in over three per cent more than last year, and 13 per cent more than the previous one. The upswing may partly be due to tax incentive changes coming down the line. In April, relief is reducing from 30 per cent to 20 per cent, so investors have been piling into the offers before the deadline. The more money going into fast-growing startups, the more jobs they create and the more economic prosperity for the country as a whole.
Investing in turbulent times
Investors have been bracing themselves for rising geopolitical conflict and have to buckle up for another bout of severe turbulence. 70 per cent of investors surveyed by Wealth Club at the start of the year saw global tensions as the biggest risk to portfolios, and that threat has now materialised in war with Iran. It’s certainly a challenge to ‘keep calm and carry on’ when the shock of conflict has shaken the world. But it’s important to remember that valuations have recovered relatively quickly following previous conflicts.
During periods of volatility, time in the market and diversification have consistently been the foundations of successful investing. For investors owning quality companies over the long term, big bumps in the road are part of the journey. Utilities, healthcare firms, companies selling consumer staples and those with reliable, high‑yielding dividends tend to be more resilient in turbulent times.
Susannah Streeter is a financial commentator and the chief investment strategist at Wealth Club