Industry News

New report reveals that Commercial Service providers remain resilient and agile in business operations despite recent revenue challenges

• 66% of contractors consider digital transformation important to their operations
• 24% of businesses have incorporated AI technology, with 80% of those businesses seeing performance improvement from automation
• In 2022, repeat customers generated the highest volume of work (69%) and revenue (44%) for contractors
• Only 30% of contractors saw an increase in revenue in 2022, and only 37% saw an increase in profits

ServiceTitan, a software platform built to power the trades, today released its first Commercial Service Report, providing insight into the challenges and opportunities facing the Commercial Services industry, as well as the strategies that businesses are employing by leveraging digital tools to stay competitive. These results highlight survey responses from more than 1,000 Commercial Service contractors around the U.S.

“Instead of looking to multiple disjointed software solutions, Commercial providers need tools that can adapt and grow with their needs,” said Vahe Kuzoyan, president and co-founder at ServiceTitan. “By embracing digital transformation, Commercial businesses can stay competitive by leveraging software to become more efficient and reduce costs, increase revenue, and provide a meaningfully better customer experience. As technology plays a larger role in business management, finding the right solution is more important than ever.”

Weathering the Storm from 2022

Macroeconomic events in 2022 created a challenging year for the industry, leaving Commercial Service contractors with a mixed outlook for 2023. According to the survey, 70% of contractors did not see an increase in revenue in 2022 — 31% of respondents reported no revenue change and 39% suffered a decrease in their revenue. With only 37% of contractors seeing an increase in margins, it’s no surprise there’s some uncertainty around expectations for 2023. 56% have neutral expectations for business in 2023, while 22% feel positive and 22% have negative views.

Commercial contractors cited a variety of risks impacting the sector; from economic recession (59%) and labor shortages (52%), to growing competition (18%) and lagging digital transformation (18%). Persistent supply chain issues still present challenges in securing materials, with 65% of respondents saying lead times for equipment have increased, and 52% reporting that material lead times for some items have increased anywhere from one week to more than two months. In terms of costs, most contractors (66%) stated that material prices have stabilized or decreased, while pricing for equipment increased (73%). As the delay in the “return to office” continues to reduce building maintenance needs, 53% of contractors have experienced an increase in cancellations or holds for their service agreements.

Focusing business goals around the customer

Even with new and continued challenges for the sector, contractors remain resilient by focusing activities on top revenue drivers like maintaining their existing customer base. The survey found that repeat customers generated the highest volume of work (69%) and revenue (44%) for Commercial contractors during this economic downturn, versus other ways of finding new customers like marketing and SEO or facilities and property management solutions. In response to this trend, owners are focusing business goals on customer retention (49%) and revenue growth (46%), whilst also putting emphasis on increasing margins (38%) and modernizing the customer experience (34%).

AI presents an opportunity for growth

The industry continues to explore artificial intelligence (AI) as a solution to streamline operations, maximize profit, and enhance the customer experience by providing time-saving tools that boost human talent. Early adopters of AI will have a competitive advantage, helping business leaders make better decisions based on AI predictions. 24% of businesses surveyed have already incorporated AI into their processes, with 80% of those businesses experiencing performance improvements from automation. Respondents see AI having an impact on a variety of Commercial use cases such as call booking (40%), invoicing (38%), dispatching (32%), and customer experience (27%).

“Finding an all-in-one software solution has eased the burden of tedious office tasks, and allowed us to focus more on our customers and business growth,” said Gary Cosmer, Partner, President & CEO of Lovett Services, a Commercial Services provider in Portland, Oregon. “For us, ServiceTitan continues to be the best solution on the market with tools like Titan Intelligence, which uses AI to deliver valuable data-driven insights and maximize efficiencies. We went from doing $16 million in revenue in 2021, to just under $20 million in 2022, and now are on track for $30 million in 2023.”

Technology is a vital tool to stay ahead of a rapidly evolving economy and competitive landscape, and the majority of contractors surveyed (66%) see digital transformation as a critical component of their operations. However, many of the businesses surveyed (59%) use more than four distinct software solutions to manage their operations, which could contribute to application overload or redundant software. This may be the reason why 16% of contractors surveyed still hesitate to adopt any technology whatsoever.

To view the full findings and key takeaways, download ServiceTitan’s Commercial 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 Commercial Service contractors representing a variety of geographical regions, business growth stages, and revenue levels. For the purposes of this survey, a “commercial service contractor” is defined as any business generating 75% or more of their revenue from commercial 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.

The new location’s distribution center will increase product availability and boast a state-of-the-art testing facility 

Niagara^®, the leader in high-performance, water-saving toilets, announced today it opened a new state-of-the-art global headquarters located at 300 Old Gerault Road in Flower Mound, Texas. The facility houses an expansive distribution center spanning over 117,000 square feet, geared toward serving Niagara’s U.S. customers in a more efficient and streamlined manner.

The new building also features a testing facility with advanced technology and tools that will measure the performance and features of toilets, showerheads, and other plumbing products. Innovation, design, and research have propelled Niagara’s growth and ability to win more than 20 industry and EPA WaterSense® awards in the last decade for re-engineering the toilet’s flush into a high-power, low-maintenance, virtually clog-free, water-efficient solution that has saved billions of gallons of the world’s water.

The new location includes a full product showroom that proudly displays a variety of Niagara’s award-winning products including Niagara’s Pro line and the newly-launched Phantom One Piece. The showroom is an opportunity for wholesalers, architects, builders and plumbing professionals to explore the different features and benefits of products and to also take a peek inside a Niagara tank by viewing a clear model that illustrates how Niagara’s patented Stealth Technology® works.

“Moving into this new cutting-edge facility and distribution center will ensure Niagara is best positioned to continue delivering on our unwavering commitment to creating innovative products and ensuring prompt lead times,” said Carl Wehmeyer, executive vice president at Niagara. “We are thrilled to have the expanded space and testing facility which will enable us to achieve our vision of continuing to grow Niagara’s footprint in the bathroom fixture industry.”

Niagara is immensely grateful to the skilled team of contractors from Cadence McShane who worked alongside project architect Meinhardt & Associates to design the building for TIG Real Estate Services, Inc. Cadence McShane, a leading provider of construction services in Texas, was chosen for the project due to their experience and expertise in building complex industrial facilities, working closely with TIG Real Estate Services, Inc. to ensure the project met their needs and requirements.

“The completion of the Niagara Flower Mound Warehouse is a significant milestone for Cadence McShane,” said Will Hodges, President of Cadence McShane. “We are excited for the opportunity to contribute to the growth and development of Flower Mound and we would like to thank TIG Real Estate Services for choosing us as their construction partner.”

In the coming months, Niagara will host an open house for customers. To learn more about Niagara’s products and how to request a tour of the new facility, please visit www.niagaracorp.com.

As Skilled Trades Gap Tops 6.5 Million Over Next Decade, Initiative Seeks to Bring Stakeholders Together While Inspiring Young People to Forge an Alternate Path to Career Success

The Skilled Careers Coalition (SCC) is launching a long-term effort to build an education-recruitment machine as the ever-widening skilled labor gap threatens the socio-economic future of the next generation.

The SCC has joined forces with SkillsUSA and IGN Entertainment to create a dynamic ecosystem that cultivates the talent required to meet the growing demand for skilled makers, builders, fixers, and creators. This strategic alignment is a vital step in the organization’s coalition-building efforts, bringing together industry expertise, educational resources, and media influence to drive positive change in the skilled career landscape. Through this collaboration, Skilled Careers Coalition is committed to empowering individuals, fostering innovation, and building a robust pipeline of skilled professionals.

“With the help of strategic partners like SkillsUSA and IGN Entertainment, Skilled Careers Coalition is on a mission to bring the youth of today to the skilled careers of tomorrow,” said John Montgomery, Executive Director, Skilled Careers Coalition. “We have a long-game approach, but we cannot do it alone and are calling on parents, youth, educators, businesses, and brands to join us in helping kids turn their talents and passions into career opportunity and achievement.”

To activate their mission, SCC is tapping SkillsUSA’s vast network of students and educators; and the capabilities and channels of IGN Entertainment to create SKILLS JAM, a teen-based docuseries set to air later this year.

“SkillsUSA is America’s proud champion of the skilled trades,” said Chelle Travis, Executive Director, SkillsUSA. “Our vision is to produce the most highly skilled workforce in the world while providing every member the opportunity for career success. We sincerely thank the Skilled Careers Coalition for providing an opportunity to amplify our mission and our message. Their efforts will make a difference for the more than 380,000 students and educators that SkillsUSA serves annually in career and technical education classrooms across the country.”

“IGN Entertainment, one of the most trusted entertainment media brands in the world, is honored to be the production partner for SKILLS JAM,” said Karl Stewart, SVP, Strategic Partnerships and Innovation, IGN. “For over 26 years we’ve been creating content and stories across video, social, editorial and web, engaging with over 286M+ eyeballs a month across 35 platforms. Now, we have the opportunity to take the experience and trust we’ve built up in helping tell, what we equally believe, is one of the most important stories of a generation.”

Announced June 20, 2023 at the annual SkillsUSA National Leadership & Skills Conference in Atlanta, the partnerships between Skilled Careers Coalition and these industry-leading organizations are part of a coordinated effort among like-minded stakeholders to change the trajectory of the skilled trades sector. SCC plans to announce more cross-industry collaborations later this summer.

From advancements in AI and the rising costs of a college education to the widening skills gap, the American workforce is changing dramatically as the next generation re-thinks the traditional four-year college-to-career path that has left many grads disillusioned and in debt. Meanwhile, America’s talent pool of highly trained professionals in skilled careers spanning construction, industrial, creative, and service, are more in-demand than ever before.

Skilled Careers Coalition is focused on reversing dated perceptions about skilled careers, with a mission to start a youth movement that drives engagement and enrollment. Together with SkillsUSA and IGN Entertainment, SCC is kicking off a powerful, content-driven awareness campaign centered around SKILLS JAM, a teen-based docuseries that inspires young adults to reimagine skilled trades as a meaningful career path that can lead to financial freedom, entrepreneurialism, and lifelong success. The show will premiere on YouTube this fall.

About SkillsUSA SkillsUSA is America’s proud champion of the skilled trades. It’s a student-led partnership of education and industry that’s building the skilled workforce our nation depends on with graduates who are career ready, day one. Representing nearly 380,000 career and technical education students and teachers, SkillsUSA chapters thrive in middle schools, high schools and college/postsecondary institutions nationwide. SkillsUSA’s mission empowers students to become skilled professionals, career-ready leaders and responsible community members. That mission is accomplished through the SkillsUSA Framework of Personal Skills, Workplace Skills and Technical Skills Grounded in Academics, which is integrated into the classroom curriculum. Through Framework instruction, students develop the character-shaping leadership skills — teamwork, communication, professionalism and more — that successful careers and lives demand. At the same time, students hone their high-level technical skills against current industry standards in more than 130 skilled trade areas, from 3-D Animation to Welding. The result? Focused, confident and highly skilled graduates who are ready to work, ready to lead and ready to make a difference in our schools, workplaces and communities. A vital solution to the skills gap, where more in-demand skilled trades positions are available than qualified professionals to fill them, SkillsUSA has served more than 14 million difference-making members since 1965. For more, visit www.skillsusa.org.

About IGN Entertainment IGN Entertainment is one of the leading Internet media companies focused on video games and entertainment. Part of Ziff Davis, Inc., IGN reaches more than 286 million monthly users around the world and is followed by more than 55MM social and YouTube followers. With an extremely engaged audience, watching over 400MM minutes of content monthly, IGN also publishes daily content on 35 platforms including TikTok, Twitter, Facebook, Instagram and Snapchat Discover. Established in 1996, IGN is headquartered in Los Angeles, with offices in San Francisco, New York, Chicago, Sydney and London. IGN content is localized in 25 languages and 112 countries and hosted on websites and native applications on mobile, connected TV, and Xbox and PlayStation platforms.

About Skilled Careers Coalition Skilled Careers Coalition (SCC) is on a mission to bring the youth of today to the skilled careers of tomorrow by revolutionizing this critical sector of the American workforce. With a dramatic paradigm shift taking place in both employment and education, and with industries and organizations operating in silos, SCC is driving the connectivity needed between parents, youth, educators, businesses, and brands to build a dynamic ecosystem that harnesses the talent needed to close the ever-widening skills gap. To empower students and educators to navigate the skilled trades landscape, Skilled Careers Coalition is producing engaging content and valuable resources. SCC is reshaping the future and fueling a youth movement that sparks excitement for skilled career opportunities while inspiring more young people to pursue a new alternate path to lifelong success. For more information or to get involved visit www.skilledcareers.org.

New tool makes it easier to balance pricing, labor costs, and expenses to fully understand every job’s profit margin

Jobber, the leading provider of operations management software for home service businesses, today announced the launch of a new job costing feature that enables home service businesses in any industry, including contracting and construction, landscaping, tree care, painting, HVAC, and roofing, to more accurately track and understand job costs and profit margins. The feature delivers increased insight into the labor, material, and miscellaneous expenses associated with a job to better understand its profitability, and to ensure service pros are earning the highest profit margins possible—without the complexity of switching between spreadsheets and multiple software.

“With material and labor costs rising, and pricing pressure increasing from homeowners, it’s easy for small businesses to get into situations where jobs become unprofitable,” said Sam Pillar, CEO & co-founder of Jobber. “One of the key measures of success for our customers is profitability. Unknowingly taking a loss on a job due to incorrect costing can have a negative impact on a business. Jobber’s new job costing feature simplifies the tracking of input costs and profitability so service pros can make important operational decisions, stay competitive, and take on the work that’s ultimately going to grow their businesses.”

The feature helps ensure that one-off jobs, such as plumbing repairs, handiwork, and landscaping projects, are profitable by tracking costs and calculating profit margins in real-time directly on the job page. Service pros can also view these trends in a report to compare profitability for different jobs and get insights to improve future pricing, estimation, and resource allocation. The profitability of each job is calculated using:

• Timesheets: Based on the hourly cost of each employee and their time worked on a job.
• Line items: The materials used on the job, including both the unit cost and price.
• Expenses: These are the expenses spent on a job

“Jobber has done a great job streamlining and organizing my business, and now with the new job costing feature, it has taken our efficiency to the next level,” said Scott Geddis, owner of M&M Skylights based in Newton, New Hampshire. “We’ve increased our revenue by 15 to 20% because I’m able to look at the data and determine in real-time what jobs were most profitable, allowing me to price future jobs with more accuracy. The tool is simple to use and helps to ensure we’re running a profitable business so we can continue growing and rewarding our staff for their hard work.”

Job costing joins a suite of other Jobber tools and integrations that help service pros win more work and generate more revenue. The company’s integration with Thumbtack, for example, helps service pros instantly connect with new customers and book more profitable jobs faster, while the advanced quoting feature gives service pros the ability to sell more with optional line items.

Job costing is available to Jobber customers on the Grow membership plan. To learn more, visit: https://getjobber.com/features/job-costing-software/.