Technology Adoption Critical to Combat Rising Costs and Maintaining Business Agility, Reveals New ServiceTitan Commercial Specialty Contractor Data
ServiceTitan (TTAN) has released its Commercial Specialty Contractor Industry Report, surveying over 1,000 specialty contractors in plumbing, HVAC, and electrical sectors. The study reveals significant challenges facing the industry, with 93% of contractors focused on winning new projects despite major hurdles.
Key findings show that 64% of contractors anticipate rising material prices, while 63% cite rising labor and overhead costs as top business risks. The report highlights that only 50% of contractors factor volatile material costs into planning, and 36% regularly adjust budgets mid-project. The average bid conversion rate stands at 17.9%, with 70% of contractors converting less than 20% of their bids.
To combat these challenges, contractors are adopting technology solutions: 80% use communication tools, 51% use project management software, and 40% employ specialized workforce management software. Notably, 17% of contractors report AI already impacting their business, with document management (57%) and reporting (41%) identified as key areas for AI transformation.
ServiceTitan (TTAN) ha pubblicato il suo Rapporto sull'Industria dei Contrattisti Specializzati Commerciali, intervistando oltre 1.000 contrattisti specializzati nei settori della plomeria, HVAC ed elettrico. Lo studio rivela sfide significative che il settore deve affrontare, con il 93% dei contrattisti concentrati sulla conquista di nuovi progetti nonostante gli ostacoli importanti.
I risultati chiave mostrano che il 64% dei contrattisti prevede un aumento dei prezzi dei materiali, mentre il 63% cita l'aumento dei costi del lavoro e delle spese generali come principali rischi aziendali. Il rapporto evidenzia che solo il 50% dei contrattisti considera i costi dei materiali volatili nella pianificazione, e il 36% aggiusta regolarmente i budget durante il progetto. Il tasso medio di conversione delle offerte si attesta al 17,9%, con il 70% dei contrattisti che converte meno del 20% delle loro offerte.
Per affrontare queste sfide, i contrattisti stanno adottando soluzioni tecnologiche: l'80% utilizza strumenti di comunicazione, il 51% utilizza software di gestione progetti e il 40% impiega software specializzati per la gestione della forza lavoro. È notevole che il 17% dei contrattisti riporta che l'IA sta già influenzando la loro attività, con la gestione dei documenti (57%) e la reportistica (41%) identificate come aree chiave per la trasformazione tramite IA.
ServiceTitan (TTAN) ha publicado su Informe sobre la Industria de Contratistas Especializados Comerciales, encuestando a más de 1,000 contratistas especializados en los sectores de fontanería, HVAC y eléctrico. El estudio revela desafíos significativos que enfrenta la industria, con el 93% de los contratistas enfocados en ganar nuevos proyectos a pesar de los grandes obstáculos.
Los hallazgos clave muestran que el 64% de los contratistas anticipa un aumento en los precios de los materiales, mientras que el 63% cita el aumento de los costos laborales y generales como los principales riesgos comerciales. El informe destaca que solo el 50% de los contratistas considera los costos de materiales volátiles en la planificación, y el 36% ajusta regularmente los presupuestos a mitad del proyecto. La tasa promedio de conversión de ofertas se sitúa en el 17.9%, con el 70% de los contratistas convirtiendo menos del 20% de sus ofertas.
Para combatir estos desafíos, los contratistas están adoptando soluciones tecnológicas: el 80% utiliza herramientas de comunicación, el 51% utiliza software de gestión de proyectos y el 40% emplea software especializado en gestión de la fuerza laboral. Es notable que el 17% de los contratistas informa que la IA ya está impactando su negocio, con la gestión de documentos (57%) y la elaboración de informes (41%) identificadas como áreas clave para la transformación mediante IA.
ServiceTitan (TTAN)은 상업 전문 계약자 산업 보고서를 발표하였으며, 플럼빙, HVAC 및 전기 분야의 1,000명 이상의 전문 계약자를 조사하였습니다. 이 연구는 93%의 계약자가 새로운 프로젝트를 수주하는 데 집중하고 있다는 것을 보여주며, 주요 장애물에도 불구하고 산업이 직면한 중대한 도전 과제를 드러냅니다.
주요 발견에 따르면 64%의 계약자가 자재 가격 상승을 예상하고 있으며, 63%는 상승하는 노동 및 간접비용을 주요 비즈니스 위험으로 언급하고 있습니다. 보고서는 오직 50%의 계약자만이 변동하는 자재 비용을 계획에 포함시키고 있으며, 36%는 프로젝트 중간에 예산을 정기적으로 조정한다고 강조합니다. 평균 입찰 전환율은 17.9%로, 70%의 계약자가 20% 미만의 입찰을 전환하고 있습니다.
이러한 도전에 대응하기 위해 계약자들은 기술 솔루션을 채택하고 있습니다: 80%가 커뮤니케이션 도구를 사용하고, 51%가 프로젝트 관리 소프트웨어를 사용하며, 40%는 전문 인력 관리 소프트웨어를 사용합니다. 특히 17%의 계약자가 AI가 이미 그들의 비즈니스에 영향을 미치고 있다고 보고하고 있습니다, 문서 관리(57%)와 보고(41%)가 AI 변환의 주요 영역으로 확인되었습니다.
ServiceTitan (TTAN) a publié son Rapport sur l'Industrie des Entrepreneurs Spécialisés Commerciaux, en interrogeant plus de 1 000 entrepreneurs spécialisés dans les secteurs de la plomberie, du CVC et de l'électricité. L'étude révèle des défis significatifs auxquels l'industrie est confrontée, avec 93 % des entrepreneurs concentrés sur l'obtention de nouveaux projets malgré des obstacles majeurs.
Les résultats clés montrent que 64 % des entrepreneurs prévoient une augmentation des prix des matériaux, tandis que 63 % citent l'augmentation des coûts de main-d'œuvre et des frais généraux comme les principaux risques commerciaux. Le rapport souligne que seuls 50 % des entrepreneurs prennent en compte les coûts des matériaux volatils dans leur planification, et 36 % ajustent régulièrement les budgets en cours de projet. Le taux moyen de conversion des offres est de 17,9 %, avec 70 % des entrepreneurs convertissant moins de 20 % de leurs offres.
Pour faire face à ces défis, les entrepreneurs adoptent des solutions technologiques : 80 % utilisent des outils de communication, 51 % utilisent des logiciels de gestion de projet et 40 % emploient des logiciels spécialisés de gestion de la main-d'œuvre. Il est à noter que 17 % des entrepreneurs rapportent que l'IA impacte déjà leur activité, la gestion des documents (57 %) et la création de rapports (41 %) étant identifiées comme des domaines clés pour la transformation par l'IA.
ServiceTitan (TTAN) hat seinen Bericht über die Branche der gewerblichen Spezialunternehmer veröffentlicht, in dem über 1.000 Spezialunternehmer aus den Bereichen Sanitär, HVAC und Elektro befragt wurden. Die Studie zeigt erhebliche Herausforderungen für die Branche, wobei 93 % der Unternehmer darauf fokussiert sind, neue Projekte zu gewinnen, trotz großer Hürden.
Wesentliche Ergebnisse zeigen, dass 64 % der Unternehmer mit steigenden Materialpreisen rechnen, während 63 % steigende Arbeits- und Gemeinkosten als die größten Geschäftsrisiken anführen. Der Bericht hebt hervor, dass nur 50 % der Unternehmer volatile Materialkosten in ihre Planung einbeziehen und 36 % regelmäßig Budgets während des Projekts anpassen. Die durchschnittliche Angebotskonversionsrate liegt bei 17,9 %, wobei 70 % der Unternehmer weniger als 20 % ihrer Angebote umsetzen.
Um diesen Herausforderungen zu begegnen, nutzen die Unternehmer technologische Lösungen: 80 % verwenden Kommunikationswerkzeuge, 51 % verwenden Projektmanagementsoftware und 40 % setzen spezialisierte Software zur Verwaltung der Arbeitskräfte ein. Bemerkenswert ist, dass 17 % der Unternehmer berichten, dass KI bereits ihr Geschäft beeinflusst, wobei Dokumentenmanagement (57 %) und Berichterstattung (41 %) als zentrale Bereiche für die Transformation durch KI identifiziert wurden.
- 93% of contractors focused on business growth through new projects
- 80% adoption rate of communication tools showing strong digital transformation
- 57% of contractors prioritizing cash flow management
- 75% of contractors expanding their client base
- 64% expect material prices to increase, threatening profit margins
- 83% face budget overrun issues
- Only 50% factor volatile material costs into planning
- Low 17.9% average bid conversion rate
- 46% reducing bid volume due to workforce limitations
- Only 46% have necessary cost management tools
Top Business Risks to Meeting Goals Include Rising Labor and Overhead Costs (
LOS ANGELES, April 10, 2025 (GLOBE NEWSWIRE) -- ServiceTitan (Nasdaq: TTAN), a software platform built to power the trades, today released its Commercial Specialty Contractor Industry Report, a study of over 1,000 specialty contractors primarily in plumbing, HVAC, and electrical, that focus a significant part of their business on construction. The report reveals that amid significant hurdles, contractors are pushing for growth, with
“The commercial sector is in the midst of a perfect storm with a fluctuating economy, regulatory changes, and rising costs,” said Alex Kablanian, Vice President and General Manager, Commercial & Construction Markets. “In this challenging landscape, adopting innovative technology, including artificial intelligence, is essential for streamlining operations and driving profitable growth even in uncertain times. Historically, we've seen the best operators use periods like this as a catalyst to harden their business and build long-term durability and it's our job to help our customers make that happen.”
Increasing profitability with better cash flow management
Specialty contractors are optimizing operations to grow revenue, but in parallel with rising material prices, rising labor, and overhead costs are top challenges that could impact revenue growth this year. Only
Impacts of the labor shortage on business volume and retention strategies
The ongoing labor shortage continues to impact the commercial construction sector, forcing specialty contractors to re-strategize areas for business growth. Forty percent of respondents indicate labor shortages as a primary risk to meeting goals and over three-quarters (
While
Optimizing workflows to drive larger profits
Amidst a competitive talent war and heightened cost pressures, contractors must readily adopt technology to remain agile to alleviate cash flow. Approximately
Technology investments for more efficient operations
To optimize workflows and drive efficiency,
“ServiceTitan’s end-to-end platform fuels the growth of billion-dollar businesses, empowering commercial construction companies with enterprise-level capabilities to scale to their full potential,” said Kris Blankenship, Industry Advisor at ServiceTitan for Commercial and Construction. “AI adoption will be critical as these businesses look to increase efficiency and raise their bottom line.”
To review the full findings and key takeaways, download the Commercial Specialty Contractor Industry Report here.
About the research
This research was conducted by Thrive Analytics on behalf of ServiceTitan, polling more than 1,000 commercial specialty contractors representing a variety of geographical regions, business growth stages, and revenue levels. This research is for informational purposes only, and ServiceTitan provides no assurances (express or implied) regarding the accuracy of the survey data.
About ServiceTitan
ServiceTitan is the software platform that powers trades businesses. The company’s cloud-based, end-to-end solution gives contractors the tools they need to run and grow their business, manage their back office, and provide a stellar customer experience. By bringing an integrated SaaS platform to an industry historically underserved by technology, ServiceTitan is equipping tradespeople with the technology they need to keep the world running.
© 2025 ServiceTitan. All rights reserved. ServiceTitan, the ServiceTitan logo, and all ServiceTitan product and service names mentioned herein are registered trademarks or unregistered trademarks of ServiceTitan, Inc. in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).
Press Contact
Sarah Cantu
ServiceTitan, Inc.
Press@servicetitan.com
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