{"id":836136,"date":"2025-04-10T09:29:06","date_gmt":"2025-04-10T13:29:06","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/technology-adoption-critical-to-combat-rising-costs-and-maintaining-business-agility-reveals-new-servicetitan-commercial-specialty-contractor-data\/"},"modified":"2025-04-10T09:29:06","modified_gmt":"2025-04-10T13:29:06","slug":"technology-adoption-critical-to-combat-rising-costs-and-maintaining-business-agility-reveals-new-servicetitan-commercial-specialty-contractor-data","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/technology-adoption-critical-to-combat-rising-costs-and-maintaining-business-agility-reveals-new-servicetitan-commercial-specialty-contractor-data\/","title":{"rendered":"Technology Adoption Critical to Combat Rising Costs and Maintaining Business Agility, Reveals New ServiceTitan Commercial Specialty Contractor Data"},"content":{"rendered":"

\nTop Business Risks to Meeting Goals Include Rising Labor and Overhead Costs (63%), Increasing Material Prices (51%), and the Shortage of Skilled Labor or Workforce Availability (40%)
\n<\/h2>\n
\n

LOS ANGELES, April 10, 2025 (GLOBE NEWSWIRE) — ServiceTitan<\/u><\/a> (Nasdaq: TTAN), a software platform built to power the trades, today released its Commercial Specialty Contractor Industry Report<\/u><\/a>, 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 93% focused on winning new projects. Of the factors threatening growth, nearly two-thirds (64%) anticipate material prices to increase, making it harder to forecast job costs and protect margins. The report also found that to stay agile, contractors are focused on diversifying service offerings (43%), improving project execution (59%), and internal processes (51%), which is spurring software adoption.<\/p>\n

\u201cThe commercial sector is in the midst of a perfect storm with a fluctuating economy, regulatory changes, and rising costs,\u201d said Alex Kablanian, Vice President and General Manager, Commercial & Construction Markets. \u201cIn 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.\u201d<\/p>\n

\n Increasing profitability with better cash flow management <\/strong>\n <\/p>\n

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 50% of contractors factor volatile material costs into their planning, and as a result, 36% are regularly adjusting budgets mid-project to deal with unexpected material costs. Approximately 83% of contractors cite budget overruns as a top issue, as well as unplanned risks not covered by contingency funds or change orders (70%). To keep projects on track and financially stable, 57% of contractors are prioritizing cash flow management. In addition, to stay profitable contractors are aiming to secure better material pricing, including using general contractors\u2019 preferred suppliers for discounts (65%) and building stronger supplier relationships for better pricing (40%). To drive profits, contractors must be strategic about the projects they take on with the report revealing a strong focus on optimizing bidding strategy (51%) and three-quarters (75%) of contractors are increasing their client base. A majority of respondents (70%) are converting less than 20% of their bids, with the average bid conversion rate at 17.9%. Bid conversion rates have remained the same year-over-year for 79% of respondents.<\/p>\n

\n Impacts of the labor shortage on business volume and retention strategies<\/strong>\n <\/p>\n

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 (76%) report they are actively hiring. Among the contractors who are decreasing bid volume, 46% say it\u2019s because of workforce and capacity limitations.<\/p>\n

While 63% of contractors cite labor costs as a top risk to meeting goals, as businesses are met with slim talent pools, over half (55%) still plan to raise wages. To recruit and retain top talent, contractors must offer competitive pay and factor employee wage increases into their budget.<\/p>\n

\n Optimizing workflows to drive larger profits<\/strong>\n <\/p>\n

Amidst a competitive talent war and heightened cost pressures, contractors must readily adopt technology to remain agile to alleviate cash flow. Approximately 63% of respondents indicate enhancing budget forecasting and accuracy as a top priority for improving cost management, followed by managing change orders and variances (62%) and streamlining cost tracking and reporting (54%). Only 46% of contractors think they have the necessary tools to effectively manage costs. Timely payments are also critical to driving revenue growth. Nearly 80% of respondents indicated timely billing as a top strategy for being profitable, with the majority of contractors noting 38 days as the average length of time for payment.<\/p>\n

\n Technology investments for more efficient operations <\/strong>\n <\/p>\n

To optimize workflows and drive efficiency, 80% of contractors use communication tools, 51% use project management software, and 40% use specialized workforce management software. Almost half (49%) continue to use spreadsheets, highlighting the potential for wider technology adoption. Thirty percent of contractors are looking to invest in technology to achieve their goals, with 59% hoping to improve project execution and 51% their internal procedures. AI adoption is growing with 17% already seeing it impact their business. Contractors believe document management (57%), reporting (41%), project planning and scheduling (20%), bid management (19%), and equipment and fleet management (17%) will be the most significant way AI transforms their businesses.<\/p>\n

\u201cServiceTitan\u2019s 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,\u201d said Kris Blankenship, Industry Advisor at ServiceTitan for Commercial and Construction. \u201cAI adoption will be critical as these businesses look to increase efficiency and raise their bottom line.\u201d<\/p>\n

To review the full findings and key takeaways, download the Commercial Specialty Contractor Industry Report here.<\/u><\/a><\/p>\n

\n About the research<\/strong>
\n
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. <\/em><\/p>\n

\n About ServiceTitan<\/strong>
\n
ServiceTitan is the software platform that powers trades businesses. The company\u2019s 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.<\/p>\n

\n \u00a9 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).<\/em>\n <\/p>\n

\n Press Contact<\/strong>
\n
Sarah Cantu
ServiceTitan, Inc.
Press@servicetitan.com<\/u><\/a><\/p>\n

\"\"
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\n \"\"\n <\/div>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

Top Business Risks to Meeting Goals Include Rising Labor and Overhead Costs (63%), Increasing Material Prices (51%), and the Shortage of Skilled Labor or Workforce Availability (40%) 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 93% focused on winning new projects. Of the factors threatening growth, nearly two-thirds (64%) anticipate material prices to increase, making it harder to forecast job costs and protect margins. The … <\/p>\n

Continue reading “Technology Adoption Critical to Combat Rising Costs and Maintaining Business Agility, Reveals New ServiceTitan Commercial Specialty Contractor Data”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-836136","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\nTechnology Adoption Critical to Combat Rising Costs and Maintaining Business Agility, Reveals New ServiceTitan Commercial Specialty Contractor Data - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/technology-adoption-critical-to-combat-rising-costs-and-maintaining-business-agility-reveals-new-servicetitan-commercial-specialty-contractor-data\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Technology Adoption Critical to Combat Rising Costs and Maintaining Business Agility, Reveals New ServiceTitan Commercial Specialty Contractor Data - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Top Business Risks to Meeting Goals Include Rising Labor and Overhead Costs (63%), Increasing Material Prices (51%), and the Shortage of Skilled Labor or Workforce Availability (40%) 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. 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The report reveals that amid significant hurdles, contractors are pushing for growth, with 93% focused on winning new projects. Of the factors threatening growth, nearly two-thirds (64%) anticipate material prices to increase, making it harder to forecast job costs and protect margins. 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