Business
Majority of Contractors Report Stable or Rising Revenue in ServiceTitan’s 2025 Commercial Service Market Survey
Commercial Business Continue to Succeed Despite Persistent Labor Shortages and Rising Costs LOS ANGELES, July 14, 2025 (GLOBE NEWSWIRE) -- ServiceTitan
About this update from Servicetitan, Inc.
[{"type":"text","content":"Commercial Business Continue to Succeed Despite Persistent Labor Shortages and Rising Costs\nLOS ANGELES, July 14, 2025 (GLOBE NEWSWIRE) -- ServiceTitan (Nasdaq: TTAN), the software platform that powers the trades, today released its third annual Commercial Service Market Report, which surveyed over 1,000 commercial owners and executives across the trades. The report reveals that 66% of commercial contractors said they entered 2025 with stable or growing revenues, even as they have faced persistent headwinds like a skilled labor shortage (52%), rising labor and overhead costs (45%), and longer material lead times (31%). More than half (53%) expressed optimism about the market. “At the heart of every commercial project is a skilled workforce,” said Alex Kablanian, Senior Vice President and GM of Commercial & Construction at ServiceTitan. “Rising material costs and product shortages are already tough enough, but the commercial industry is also feeling the squeeze from ongoing labor shortages. That’s been made worse by post-pandemic shifts, tighter regulations, and mounting compliance pressures. Contractors have a lot to juggle navigating these challenges, managing risk, and protecting their bottom line. Ultimately, it takes a combination of smart technology adoption and strong customer relationships to stay competitive and drive consistent growth.” Despite positive revenue trends, more than one-third of commercial contractors remain focused on increasing net profit margins (39%), optimizing existing processes (39%), followed by growing recurring revenue (37%) and retaining existing customers (33%), given the recent rise in costs. While many have an optimistic outlook, contractors are likely to still face challenges ahead. In addition to the skilled labor shortage, rising labor and overhead costs, and increasing material lead times, operational gaps in the field, like the lack of fast access to warranty and service agreement data (70%), issues with parts availability (57%), and struggles to retrieve service and repair history onsite (55%), could further limit contractors’ ability to meet their goals. According to the report, nearly three-quarters (73%) of contractors anticipate a rise in material costs. Longer material lead times also pose a significant risk (31%), with over half (54%) of contractors expecting an increase of 2 week...