Majority of Contractors Report Stable or Rising Revenue in ServiceTitan’s 2025 Commercial Service Market Survey
Rhea-AI Summary
ServiceTitan (Nasdaq: TTAN) has released its third annual Commercial Service Market Report, surveying over 1,000 commercial contractors. The report reveals that 66% of contractors reported stable or growing revenues in 2025, with 53% expressing market optimism despite challenges.
Key challenges include skilled labor shortages (52%), rising labor and overhead costs (45%), and longer material lead times (31%). The report highlights that 73% of contractors anticipate rising material costs, with 54% expecting material lead times to increase by 2+ weeks.
The study also found that contractors average 28 days to receive payments, with 63% of contractors securing over half their customer base through preventative maintenance agreements (PMAs). Additionally, 75% of contractors offer online customer portals, though only 26% use them for direct communication.
Positive
- 66% of contractors reported stable or growing revenues
- 63% of contractors secure over half their customer base through PMAs
- 75% of contractors get over 20% additional revenue from PMA pull-through work
- 70% of contractors already use CRM systems
- Fast invoice processing averaging 2 days
Negative
- 52% face skilled labor shortage challenges
- 73% anticipate rising material costs impacting operations
- 28-day average payment collection time indicates cash flow challenges
- 54% expect material lead times to increase by 2+ weeks
- Only 26% utilize customer portals for direct communication
News Market Reaction – TTAN
In the trading session that priced this news, TTAN gained 1.11%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Commercial Business Continue to Succeed Despite Persistent Labor Shortages and Rising Costs
LOS 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
“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 (
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 (
According to the report, nearly three-quarters (
Smart AR and collections strategies safeguard cash flow
Technology plays a pivotal role in safeguarding profits and reducing operational risk—especially by helping contractors issue invoices quickly. While they are swift with billing, averaging two days to send invoices, the real pressure point lies in the collection process: the average time to get paid is 28 days. The findings reveal that ACH (
PMAs and strategic CRM adoption fuel growth
Driving sales and nurturing client relationships are also critical to revenue growth. For commercial contractors, the findings indicate that repeat customers (
Current trends and market sentiment indicate that preventative maintenance agreements (PMAs) are effective tools for boosting recurring revenue. A significant
Emerging AI and digital customer portals unlock value for customers
As commercial service contractors invest in technology, artificial intelligence is transitioning from a conceptual tool to a tangible asset. A large segment of contractors (
While commercial service contractors are advancing internally with technology, an opportunity exists to enhance the external customer experience through digital platforms. The report indicates that almost half (
To review the full findings and key takeaways, download ServiceTitan’s Commercial Service Market Report here.
About the research
This research was conducted by Thrive Analytics on behalf of ServiceTitan, polling more than 1,000 commercial owners and executives, primarily in mechanical, electrical and plumbing, who primarily perform work on commercial buildings. The survey was conducted from May 5 to May 23, 2025. This research is for informational purposes only and ServiceTitan provides no assurances (express or implied) with respect to the accuracy of the survey data. Forward-looking economic and industry outlooks represent the views of the survey respondents, and may not represent the view of ServiceTitan or its affiliates.
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.
Press Contact
Max Wertheimer
ServiceTitan, Inc.
Press@servicetitan.com
© 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).
