ServiceTitan
ServiceTitan released its 2023 Residential Market report, covering the state of the industry and emerging trends.
The report includes findings from over 1,000 contractors across different trades, with 65% being HVAC, Plumbing, or Electrical. Most respondents reported between $1 million and $25 million in revenue.
What they found: Contractors identified key risks to hitting 2023 goals; the biggest being an economic recession (70%), the labor shortage (49%), and access to working capital (46%).
In response to cost increases, 28% of contractors will increase service prices by 2-3% through the end of this year, and 23% will increase prices by 4-5%.
To retain good technicians, 39% of contractors will raise salaries by 1-3%, and another 39% will increase wages by 4% or more.
Last year, repeat customers drove 58% of work and 39% of revenue, signaling that marketing efforts focused on customer retention (versus new customers) may offer the best return on investment.
👉 See the full report here.
Of note: In a conversation about the report, ServiceTitan’s Chris Hunter and Angie Snow noted that next year, they expect service and repair to increase and big-ticket projects to decrease.
“Contractors are having to be a little strategic now because we're not seeing the bigger tickets,” said Snow.
Looking ahead: HVAC contractors, in particular, are mostly neutral about 2024 — 20% are optimistic, 62% are neutral, and 18% are pessimistic.
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