Report finds resilient businesses are adopting technology, outsourcing, and focusing on customer relationships 29% of contractors plan to invest in technology this year to increase revenue, customer retention, and customer acquisition. 27% of contractors have outsourced services as a solution to streamline their processes, scale, and grow revenue Repeat customers accounted for 39% of revenue Read more
Industry News
Report finds resilient businesses are adopting technology, outsourcing, and focusing on customer relationships
- 29% of contractors plan to invest in technology this year to increase revenue, customer retention, and customer acquisition.
- 27% of contractors have outsourced services as a solution to streamline their processes, scale, and grow revenue
- Repeat customers accounted for 39% of revenue and 71% of business volume for contractors this year
ServiceTitan, a software platform built to power the trades, has released its first Residential Services Report, providing insight into the challenges and opportunities facing the industry, market outlook, business strategies, and emerging trends. These results highlight survey responses from more than 1,000 residential service contractors around the U.S.
“Residential contractors provide essential services that keep our world running, and that’s not going to change anytime soon”, said Vahe Kuzoyan, president and co-founder at ServiceTitan. “These contractors remain resilient and innovative amidst a year of diverse outcomes, using new strategies and purpose-built technology to allow them to focus on operational excellence and building lasting relationships with customers.”
Tempered sentiments reflect market uncertainty
Economic uncertainty, labor shortages, and reduced access to working capital have created a strain on businesses across the US, and in response, residential contractors have a mixed outlook for the current year. According to the survey, over half (67%) of contractors have neutral expectations for the future, 18% are optimistic, and 14% feel pessimistic.
Strategies to combat supply chain disruption
The tailwind effects of COVID-19, increased natural disasters across the nation, and global warehouse capacity issues are resulting in extended supply chain disruption. Contractors reported difficulty obtaining supplier parts (64%), raw materials (47%), specialty materials (44%), equipment (23%), vehicles (17%), and sustainable “green” materials (14%). Supplier diversification can increase supply chain resilience. 60% of contractors purchase directly from a supply house, 23% directly from the manufacturer, and 17% directly from the vendor.
Outsourcing is one effective strategy for contractors looking to increase stability and growth. Approximately one-third of businesses (27%) have leveraged outsourcing as a solution to streamline their processes. The three most common areas for outsourcing included call centers (76%), customer service (49%), and digital advertising/SEO (32%). Outsourcing allows businesses to centralize their operations and create a more consistent, reliable customer experience while scaling.
Developing trusted, deep customer relationships
Customer relationships, both existing and new, play a major role in business success. Repeat customers accounted for 39% of contractors’ annual revenue, and satisfied customers are also more likely to offer referrals or recommendations, which can help generate new leads. Respondents reported 71% of business volume in the last year came from word-of-mouth referrals. Growing revenue (56%) as well as customer retention (50%) and customer acquisition (46%) were all top priorities for residential contractors in 2023.
Attracting and retaining high-performing technicians and employees is also top-of-mind, as competition for talent remains fierce amidst a skilled labor shortage. In response, businesses are being very intentional with recruitment and retention practices. Over one-third of contractors surveyed (38%) will increase technician salaries between 4% or more as a strategy to attract and keep top talent, while 39% of respondents stated that they plan to increase technician pay by 1-3%.
Continued investment in technology presents new benefits across the business
Through emerging technologies like automation and AI, contractors can offload much of their administrative work and focus their time on boosting productivity, optimizing resources, and doing what they do best: serving customers and building lasting relationships in their communities. Survey results indicate that contractors are leveraging technology primarily for business management (63%), field service management (48%), accounting (42%), enterprise resource planning (38%), payroll (33%), and human resources (33%).
“AI is changing the way we work in the trades,” said Jason Brady, Owner and CEO at Above & Beyond Heating & Cooling. “We’re going to be able to stop focusing on the insignificant things, and really focus on the things that matter to the business. New technology isn’t always perfect, but it’s helping contractors tackle some of the menial tasks of the job so they can focus more on servicing customers.”
Technology is not only freeing up resources, but also improving worker satisfaction, enhancing safety, and creating more attractive career paths and opportunities for professional development. With technology as a key tool to achieve business goals, 29% of residential contracting businesses plan to invest in technology this year to increase revenue (56%), customer retention (50%), and new customer acquisition (46%).
To view the full findings and key takeaways, download ServiceTitan’s Residential Service Report here.
About the research
The survey was conducted on behalf of ServiceTitan by Thrive Analytics, an independent third-party research provider and a leading digital marketing research firm, polling more than 1,000 residential service contractors representing a variety of geographical regions, business growth stages, and revenue levels. For the purposes of this survey, a “residential service contractor” is defined as any business generating 60% or more of their revenue from residential services. This research is for informational purposes only and ServiceTitan provides no assurances (express or implied) with respect to the accuracy of the survey data.
RIDGID® Experience Goes Global: European Guests Visit Elyria, Ohio Headquarters—Participants from eight countries received a behind-the-scenes tour during the three-day trip to Elyria, Ohio. RIDGID®, a part of Emerson’s professional tools portfolio, recently hosted the first RIDGID Experience Europe Edition 2023, an all-expenses-paid, three-day VIP trip to the company headquarters in Elyria, Ohio. The event Read more
RIDGID® Experience Goes Global: European Guests Visit Elyria, Ohio Headquarters—Participants from eight countries received a behind-the-scenes tour during the three-day trip to Elyria, Ohio.
RIDGID®, a part of Emerson’s professional tools portfolio, recently hosted the first RIDGID Experience Europe Edition 2023, an all-expenses-paid, three-day VIP trip to the company headquarters in Elyria, Ohio. The event welcomed a total of nine trade professionals from France, Germany, Greece, Italy, Norway, Poland, Romania, and the United Kingdom.
RIDGID Experience Europe included exclusive opportunities and team building events that highlighted the brand’s commitment to the trades. Hands-on experiences included a factory tour that invited each guest to build their own iconic RIDGID customized pipe wrench, and time in the research test lab working with innovations in the product development pipeline. “Our guests got a sneak peek at what’s coming from RIDGID, and we loved hearing their opinions on how these tools can help them maximize their time on jobsites,” said Michael Lucas, marketing manager RIDGID Europe. “Getting this global perspective is so important and hearing it in person is really special to our teams.”
The trip was modeled after the North American RIDGID Experience now heading into its seventh year in2024.RIDGID selected attendees from a pool of hundreds of professional tradespeople.
“Our annual RIDGID Experience event is a highlight of our year, and being able to bring some of Europe’s biggest RIDGID fans to our headquarters for a similar experience was a thrill for us,” said Becky Brotherton, director of brand and engagement marketing, RIDGID for Emerson. “RIDGID tools are used on jobsites around the world, but there’s something special about stepping on the manufacturing floor and talking with the people who make them. Our guests are always impressed with how much pride goes into manufacturing the tools they use every day.”
Emerson’s professional tools business, which includes RIDGID as well as the Greenlee® and Klauke® brands, provides the industry’s broadest portfolio of advanced, reliable tools and technologies for the mechanical, electrical and plumbing trades globally.
Visit www.emerson.com/professionaltools for more information. RIDGID®, Greenlee® and Klauke® are trademarks of Emerson or its subsidiaries. All other trademarks belong to their respective holders.
• Facilities in San Antonio, Texas, Wichita, Kansas, and Waynesboro, Pennsylvania, will expand to scale production, creating approximately 1,000 new U.S. jobs • Updated plants will produce an estimated 200,000 residential, commercial and industrial heat pumps combined – a production increase of 200% • Increased production will cut an estimated 25 million metric tons of CO² per Read more
• Facilities in San Antonio, Texas, Wichita, Kansas, and Waynesboro, Pennsylvania, will expand to scale production, creating approximately 1,000 new U.S. jobs
• Updated plants will produce an estimated 200,000 residential, commercial and industrial heat pumps combined – a production increase of 200%
• Increased production will cut an estimated 25 million metric tons of CO² per year
“We are thrilled to participate in this program and help drive the enormous impact it will have on energy security, reliability and affordability while achieving unprecedented progress in slashing carbon. We also are excited to create 1,000 new family sustaining jobs – a great boost for the communities we call home,” said Katie McGinty, vice president and chief sustainability and external relations officer, Johnson Controls.
The grant is part of the first award from DOE’s authorization by the Biden Administration to utilize the Defense Production Act (DPA) to increase domestic production of five key clean energy technologies, including heat pumps. The Johnson Controls’ project expands production of its York product line at its plants in San Antonio, Texas, Wichita, Kansas, and Waynesboro, Pennsylvania. Within these communities, Johnson Controls is partnering with local unions, economic development groups, and community colleges to expand internship, apprenticeship and long-term full time job opportunities.
Upon completion, Johnson Controls estimates the initiative will save 1.63 million metric tons of CO² emissions from residential heating and 25 million metric tons from commercial and industrial heating per year – the equivalent to greenhouse gas emissions from more than 5.5 million gasoline-powered vehicles driven for one year. The investment also will highlight the versatility of heat pump applications, which, in North America, have historically been concentrated in the residential sector.
“As we move toward achieving nation-wide reductions in greenhouse gas emissions, it is critical that our commercial, institutional and industrial sectors have the technologies necessary for effective decarbonization,” McGinty added. “Some of our heat pumps will help homeowners cut their energy bills, while others can play a major role in commercial industries. For example, we already are working with large scale institutions on heat pump deployments that will cut emissions by more than 70% and costs by more than 60%.”
Johnson Controls’ heat pump customers have seen incredible results and are making immense progress toward their sustainability goals, not just in terms of carbon emissions, but also in reducing water use. Johnson Controls’ heat pumps use electricity to efficiently move heat, rather than burn fuel. This makes heat pumps, which transfer three to eight times more working energy than they consume, a critical tool for reducing greenhouse gas emissions and cutting costs. Johnson Controls offers the world’s most comprehensive range of heat pumps across residential, commercial, and industrial applications, and was recently recognized on Fortune’s 2023 Change the World list for innovative and transformative heat pump technology.
Additionally, Johnson Controls’ ongoing workforce development programs across the country are helping inspire and prepare tomorrow’s talent for these high-demand and critical careers, like electric heat pump production, installation and servicing. This includes the company’s largest philanthropic initiative, the Community College Partnership Program, which is investing $15 million in 30 colleges across the United States to graduate students from historically underrepresented groups and support them in preparing for and embarking on career paths in sustainable building practices.
To learn more about Johnson Controls heat pump technology, visit: johnsoncontrols.com/whatisaheatpump.
Covers Performance Requirements and Details Comparisons The Plastics Pipe Institute, Inc. (PPI) recently announced the publication of a new document that provides the technical basis for comparing PE 100-RC to PE4710 pressure pipe. Called PPI TN-68, Historical Review of the PE 100-RC Concept – How PE4710 Compares to PE 100-RC, it will provide a perspective Read more
Covers Performance Requirements and Details Comparisons
The Plastics Pipe Institute, Inc. (PPI) recently announced the publication of a new document that provides the technical basis for comparing PE 100-RC to PE4710 pressure pipe. Called PPI TN-68, Historical Review of the PE 100-RC Concept – How PE4710 Compares to PE 100-RC, it will provide a perspective on the Slow Crack Growth (SCG) resistance requirements for the PE 100-RC designation in comparison with the North American PE4710 designation. This publication offers a common basis and understanding to industry. PPI is the major North American association representing the plastic pipe industry.
“The PE 100-RC concept has been around since 2009,” stated Patrick Vibien, P.Eng., technical director, PPI, “but there is a lack of clarity to the implications of the designation and a lack of consensus on whether a comparable designation has value for the North American industry given the already elevated SCG resistance requirements of PE4710. The development of the PE 100-RC designation was not due to documented performance issues with PE 100. This grade designation has been promoted internationally by the PE 100+ Association and is now being introduced into ISO and CEN standards. Although PE compounds are fairly similar, the test methods and requirements for assessing the performance of the designations differ significantly. Our new document goes into detail about this plus provides a comparison chart and other data that can be helpful and useful.”
TN-68 can be found on the Technical Notes page of the PPI website www.plasticpipe.org.
Leading manufacturer continues partnership with local community organization and its ongoing efforts to eradicate food insecurity Bradford White Corporation, an industry-leading American manufacturer of water heaters, boilers and storage tanks, is providing critical support for the fight against hunger this holiday season with a $10,000 contribution to Philabundance. The donation will help Philabundance’s year-end food distribution Read more
Leading manufacturer continues partnership with local community organization and its ongoing efforts to eradicate food insecurity
Bradford White Corporation, an industry-leading American manufacturer of water heaters, boilers and storage tanks, is providing critical support for the fight against hunger this holiday season with a $10,000 contribution to Philabundance.
The donation will help Philabundance’s year-end food distribution program, which provides holiday food items to individuals and families struggling with food insecurity in the Greater Philadelphia area. Bradford White also donated to the Philabundance Camp Out for Hunger food drive event and will also be hosting food drives throughout the year to support the urgent need in the region.
“The holidays can be stressful for members of our community who are struggling financially,” said Rebecca Owens, senior manager of communications at Bradford White. “Philabundance works hard to ensure that all of our neighbors have the opportunity to share a happy, healthy holiday season with their families and friends. We’re proud to support them and their mission during this special time of year.”
Philabundance was founded in 1984 with the simple belief that no one should go hungry while healthy food goes to waste. The organization’s mission is to drive hunger from our communities today and to end hunger for good.
For more information about Philabundance, visit https://www.philabundance.org/.
For more information about Bradford White Corporation, visit https://www.bradfordwhitecorporation.com.