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Majority of Contractors Report Stable or Rising Revenue in ServiceTitan’s 2025 Commercial Service Market Survey

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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.

ServiceTitan (Nasdaq: TTAN) ha pubblicato il suo terzo Rapporto annuale sul Mercato dei Servizi Commerciali, intervistando oltre 1.000 appaltatori commerciali. Il rapporto evidenzia che il 66% degli appaltatori ha registrato ricavi stabili o in crescita nel 2025, con il 53% che manifesta ottimismo sul mercato nonostante le difficoltà.

Le principali sfide includono la carenza di manodopera qualificata (52%), l’aumento dei costi del lavoro e delle spese generali (45%) e tempi di consegna dei materiali più lunghi (31%). Il rapporto sottolinea che il 73% degli appaltatori prevede un aumento dei costi dei materiali, con il 54% che si aspetta un allungamento dei tempi di consegna dei materiali di oltre 2 settimane.

Lo studio ha inoltre rilevato che gli appaltatori impiegano in media 28 giorni per ricevere i pagamenti, con il 63% che ottiene più della metà della propria clientela tramite accordi di manutenzione preventiva (PMA). Inoltre, il 75% degli appaltatori offre portali clienti online, anche se solo il 26% li utilizza per comunicazioni dirette.

ServiceTitan (Nasdaq: TTAN) ha publicado su tercer Informe anual del Mercado de Servicios Comerciales, encuestando a más de 1,000 contratistas comerciales. El informe revela que el 66% de los contratistas reportaron ingresos estables o en crecimiento en 2025, con un 53% que expresa optimismo en el mercado a pesar de los desafíos.

Los principales retos incluyen la escasez de mano de obra calificada (52%), el aumento de los costos laborales y generales (45%) y tiempos de entrega de materiales más largos (31%). El informe destaca que el 73% de los contratistas anticipa un aumento en los costos de materiales, y un 54% espera que los tiempos de entrega de materiales aumenten en más de 2 semanas.

El estudio también encontró que los contratistas tardan en promedio 28 días en recibir pagos, y que el 63% asegura más de la mitad de su base de clientes mediante acuerdos de mantenimiento preventivo (PMA). Además, el 75% de los contratistas ofrece portales de clientes en línea, aunque solo el 26% los usa para comunicación directa.

ServiceTitan (나스닥: TTAN)은 1,000명 이상의 상업 계약자를 대상으로 조사한 세 번째 연례 상업 서비스 시장 보고서를 발표했습니다. 보고서에 따르면 66%의 계약자가 2025년에 매출이 안정적이거나 증가했다고 보고했으며, 53%는 어려움에도 불구하고 시장에 대해 낙관적인 전망을 보였습니다.

주요 과제로는 숙련된 인력 부족(52%), 인건비 및 간접비 상승(45%), 자재 납기 지연(31%)이 포함됩니다. 보고서는 73%의 계약자가 자재 비용 상승을 예상하며, 54%는 자재 납기가 2주 이상 길어질 것으로 예상한다고 강조합니다.

연구 결과 계약자들이 평균 28일 동안 대금을 받으며, 63%는 예방 유지보수 계약(PMA)을 통해 고객의 절반 이상을 확보하는 것으로 나타났습니다. 또한 75%의 계약자가 온라인 고객 포털을 제공하지만, 그중 26%만이 직접 소통에 사용합니다.

ServiceTitan (Nasdaq : TTAN) a publié son troisième rapport annuel sur le marché des services commerciaux, enquêtant auprès de plus de 1 000 entrepreneurs commerciaux. Le rapport révèle que 66 % des entrepreneurs ont déclaré des revenus stables ou en croissance en 2025, avec 53 % exprimant un optimisme quant au marché malgré les défis.

Les principaux défis incluent la pénurie de main-d'œuvre qualifiée (52 %), la hausse des coûts de main-d'œuvre et des frais généraux (45 %) ainsi que des délais d'approvisionnement plus longs (31 %). Le rapport souligne que 73 % des entrepreneurs anticipent une augmentation des coûts des matériaux, et que 54 % s'attendent à ce que les délais d'approvisionnement augmentent de plus de 2 semaines.

L'étude a également révélé que les entrepreneurs mettent en moyenne 28 jours pour recevoir les paiements, avec 63 % d'entre eux obtenant plus de la moitié de leur clientèle via des accords de maintenance préventive (PMA). De plus, 75 % des entrepreneurs proposent des portails clients en ligne, bien que seulement 26 % les utilisent pour une communication directe.

ServiceTitan (Nasdaq: TTAN) hat seinen dritten jährlichen Bericht zum kommerziellen Servicemarkt veröffentlicht, basierend auf einer Umfrage unter über 1.000 gewerblichen Auftragnehmern. Der Bericht zeigt, dass 66 % der Auftragnehmer für 2025 stabile oder wachsende Umsätze melden, wobei 53 % trotz Herausforderungen optimistisch für den Markt sind.

Zu den wichtigsten Herausforderungen zählen Fachkräftemangel (52 %), steigende Arbeits- und Gemeinkosten (45 %) sowie längere Materiallieferzeiten (31 %). Der Bericht hebt hervor, dass 73 % der Auftragnehmer mit steigenden Materialkosten rechnen und 54 % erwarten, dass sich die Materiallieferzeiten um mehr als 2 Wochen verlängern.

Die Studie ergab außerdem, dass Auftragnehmer im Durchschnitt 28 Tage für Zahlungseingänge benötigen, wobei 63 % mehr als die Hälfte ihrer Kundenbasis durch präventive Wartungsverträge (PMAs) sichern. Zudem bieten 75 % der Auftragnehmer Online-Kundenportale an, doch nur 26 % nutzen diese für direkte Kommunikation.

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

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 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 weeks or more. Equipment shows similar trends, with 56% expecting an increase in lead times. Of those surveyed, 59% of contractors are concerned these rising costs will significantly impact profitability.

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 (37%), checks (30%), and credit cards (14%) are the top methods contractors are utilizing to collect payments. The findings underscore a critical need for meticulous AR management and diversified payment collection strategies to protect cash flow.

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 (65%) and word-of-mouth referrals (60%) remain the primary drivers of business volume. To effectively manage and scale these vital connections, 70% of commercial service contractors are already leveraging customer relationship management (CRM) systems, with nearly half of the remaining contractors (47%) considering implementing a CRM. Contractors ranked increasing customer retention (58%), lead conversions (58%), and close rate (57%) nearly equally as their top CRM goals.

Current trends and market sentiment indicate that preventative maintenance agreements (PMAs) are effective tools for boosting recurring revenue. A significant 63% of contractors report that over half of their customer base is secured through PMAs. For customers on a PMA, 75% of contractors report they’re getting over 20% of additional revenue from pull-through work.

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 (39%) recognize its moderate or emerging potential, indicating a growing readiness to adopt AI capabilities.

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 (44%) consider it extremely important to improve the customer experience through online portals. That said, 75% of contractors offer an online customer portal, but only a small fraction (26%) utilize it for direct communication. For customers, this presents an opportunity to embrace greater digitization for a more efficient, professional, and engaging journey. For businesses, it’s an opportunity to continue modernizing their offerings and better meet customer needs.

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).


FAQ

What percentage of contractors reported stable or growing revenue in ServiceTitan's 2025 survey?

According to ServiceTitan's survey, 66% of commercial contractors entered 2025 with stable or growing revenues.

What are the main challenges facing commercial contractors in 2025 according to ServiceTitan (TTAN)?

The main challenges include skilled labor shortage (52%), rising labor and overhead costs (45%), and longer material lead times (31%).

How long does it take contractors to get paid according to ServiceTitan's 2025 report?

The average time to get paid is 28 days, despite contractors typically sending invoices within 2 days.

What percentage of ServiceTitan contractors use Preventative Maintenance Agreements (PMAs)?

63% of contractors report that over half of their customer base is secured through PMAs, with 75% getting over 20% additional revenue from pull-through work.

How many contractors are using CRM systems according to ServiceTitan's 2025 survey?

70% of commercial service contractors are currently using CRM systems, with 47% of the remaining contractors considering implementation.

What are contractors' expectations regarding material costs in 2025?

73% of contractors anticipate a rise in material costs, with 54% expecting material lead times to increase by 2 weeks or more.
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