ServiceTitan

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%)

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 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.

“The commercial sector is in the midst of a perfect storm with a fluctuating economy, regulatory changes, and rising costs,” said Alex Kablanian, Vice President and General Manager, Commercial & Construction Markets. “In 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.”

Increasing profitability with better cash flow management 

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’ 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.

Impacts of the labor shortage on business volume and retention strategies

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’s because of workforce and capacity limitations.

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.

Optimizing workflows to drive larger profits

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.

Technology investments for more efficient operations 

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.

“ServiceTitan’s 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,” said Kris Blankenship, Industry Advisor at ServiceTitan for Commercial and Construction. “AI adoption will be critical as these businesses look to increase efficiency and raise their bottom line.”

To review the full findings and key takeaways, download the Commercial Specialty Contractor Industry Report here.

Contractors and Technicians Embrace AI to Advance Skill Sets and Grow Businesses with Solutions Announced at ServiceTitan’s Annual User Conference

ServiceTitan, a leading software platform built to power the trades, today announced additions to its AI-powered technology for residential and commercial contractors. The latest solutions unveiled at Pantheon 2024 include a transformative AI assistant that will work across ServiceTitan’s suite of products, along with new applications for sales and call centers. Powered by Titan Intelligence, the company’s own purpose-built AI solution for the trades, these innovations empower contractors to automate, predict, and optimize their entire business.

“At ServiceTitan, we’re empowering our customers to do more than just unlock efficiency – we’re giving them the comprehensive tools they need to thrive in a rapidly-changing world, where AI is transforming nearly every industry,” said Vahe Kuzoyan, president and co-founder at ServiceTitan. “I’m thrilled to be expanding our suite of technology to equip our customers with the tools they need to work smarter, communicate efficiently, sell more effectively, and grow faster.”

The new features and solutions introduced at Pantheon 2024, ServiceTitan’s annual user conference, include:

• Contact Center Pro is an always-on, AI-driven contact center for the trades that simplifies multiple communications channels to increase revenue, lower costs, and improve customer service. Powered by Titan Intelligence virtual agents, it’s a multi-channel solution that brings phone, email, web, and social into a Universal Inbox, with guidance from a virtual assistant.

• SalesPro is an AI-powered solution to help technicians excel at sales. As AI-powered sales tools become more common, SalesPro is the first to focus on the trades. Most technicians are not sales experts but do much of a firm’s selling by necessity due to their regular customer interactions. Powered by Siro, SalesPro helps technicians gain confidence by analyzing their interactions through AI and suggestions, utilizing expert training content. It also connects technicians with peer-to-peer coaching to unlock their inner sales pro.

• TI Assist revolutionizes customer decision-making across ServiceTitan by bringing AI, predictive insights, risk analysis, personalized recommendations, and deep automation to ServiceTitan with intuitive, easy-to-use TI personal assistants. Across roles and responsibilities, all users can use TI Assist to do their jobs more efficiently.

“At ServiceTitan, we are obsessed with making our customers as successful as possible,” said Ara Mahdessian, co-founder and CEO of ServiceTitan. “To do this, we continually strive to build innovative software, powered by AI, to help them run and grow their businesses. By delivering actionable insights and automated technology, we help contractors stay focused on what they do best—serving their customers and providing top-tier service, all while unlocking new opportunities for revenue growth and sustained profitability.”

To learn more about all of the new features and announcements at Pantheon 2024 visit the Pantheon Live Blog.

Franchise Owners Can Now Leverage the Power of ServiceTitan to Enhance Performance, Optimize Customer Experiences, and Enable Profitable Growth

ServiceTitan, a leading software platform built to power the trades, today announced a strategic partnership with Authority Brands, a home services franchise leader. This new partnership will deploy ServiceTitan’s platform across several of Authority Brands’ industry leading home service businesses including Benjamin Franklin Plumbing, Mister Sparky Electric, and One Hour Heating & Air Conditioning. The new integration will empower franchise owners to maximize business performance, grow profitably, and deliver a superior customer experience.

“ServiceTitan is purpose-built to solve the complex and always evolving challenges for trades businesses of all shapes and sizes,” said Ara Mahdessian, CEO of ServiceTitan. “Since 2018, we have partnered with Authority Brands’ franchise owners to increase close rates, ticket sizes, and efficiency across their operations. We’re excited to grow our relationship with their portfolio of businesses by integrating ServiceTitan across these franchisees, while empowering them to maximize performance, offer superior customer experiences, and become more profitable.”

As one of the largest franchise systems in the trades, Authority Brands provides home services through over 2,000 territories operated by more than 1,000 franchise owners. The company enables its brands with robust marketing capabilities, dependable technology, and operational support to ensure their growth and success.

“We are dedicated to enabling our loyal franchise partners with cutting-edge solutions that accelerate their businesses. The comprehensive functionality, intuitive design, and ability to consolidate operations into a single platform set ServiceTitan apart as a preferred partner,” said Craig Donaldson, CEO of Authority Brands. “We’re thrilled to establish ServiceTitan as the primary platform across all locations and further enable our franchise partners to run efficient and profitable businesses.

Through its partnership with ServiceTitan, all Benjamin Franklin Plumbing, Mister Sparky Electric, and One Hour Heating & Air Conditioning locations will operate across one unified CRM, enabling system-wide visibility and ensuring accuracy all on one centralized platform. Authority Brands franchisees will also have access to ServiceTitan’s all-in-one platform and comprehensive capabilities to manage their businesses.

“As a franchise owner, nothing is more important to me than growing my business every day. This partnership between our brands and ServiceTitan is the best way to help our entire network grow. Both ServiceTitan and our brands are the best at what we do. I am excited to see ServiceTitan’s stellar operations and marketing services matched with our multi-million dollar business for continued success,” said Aaron Hagan, franchise owner of Mister Sparky Mid-America.

For more information about ServiceTitan, visit https://www.servicetitan.com.

Southland and its Subsidiary, the Brandt Companies, Will Leverage ServiceTitan’s End-to-End Platform for the Commercial Sector to Increase Efficiency, Accelerate Profitable Growth, and Elevate Customer Satisfaction

ServiceTitan, a software platform built to power the trades, announced an exclusive partnership with Southland Industries, a leading commercial mechanical, electrical, and plumbing (MEP) contracting firm. This new partnership will deploy ServiceTitan’s platform across Southland’s subsidiary, The Brandt Companies, followed by Southland’s service division. ServiceTitan’s integration into Southland will help drive greater efficiency, customer satisfaction, and profitability for the company.

“ServiceTitan is purpose-built for the commercial contracting industry, with a proven track record of helping contractors optimize profit and accelerate their businesses,” said Alex Kablanian, General Manager of Commercial & Construction. “We are thrilled to partner with Southland & Brandt to supercharge their entire service operation – from the initial prospecting motion to managing work in the field through accounting, invoicing, payroll, and more. We’re excited to support one another, learn from one another, and help advance the commercial contracting industry together.”

Widely recognized as one of the largest MEP contractors in the United States, Southland Industries provides integrated, full lifecycle solutions that optimize the design, construction, operation, and efficiency of buildings. Through its partnership, Southland will now be able to leverage the full power of ServiceTitan’s technology suite for the commercial sector, including:

• Property intelligence to find and win new business by identifying the area’s best, high-intent prospects for outreach.

• Mobile-first field apps with OCR nameplate scanning, AI assistants, and tasking checklists to automate equipment maintenance and drive workforce productivity.

• Powerful accounting capabilities that optimize cash flow by centralizing AR and AP in one place for deeper, connected financial insights that integrate into ERPs.

• Innovative customer experiences that maximize their lifetime value by surfacing proactive equipment monitoring and self-serve options to track open contracts and request work orders 24/7.

• Real-time costing across every phase of work and AI-powered profit predictors to improve your bottom line and drive long-term profitable growth.

“The strength of ServiceTitan’s product functionality and enterprise-grade platform impressed us from the start,” said Butch King, Vice President of Service at Brandt, a Southland Industries company. “Not only are they committed to providing the best solutions today, but they are committed to evolving with market needs in the future to help us further optimize our business for years to come. More than anything else, it is clear to me that ServiceTitan’s passionate team members, track record of success, and a company culture that aligns with Southland’s will result in a really successful partnership.”

Trusted by thousands of commercial contractors across the United States, ServiceTitan empowers businesses throughout the entire property lifecycle, including service, replacement, and construction. Recently, ServiceTitan expanded its commercial services offerings through its acquisition of Convex, a leading sales and marketing platform, and utilized by one of Southland’s service teams. Convex’s technology is specifically built for the commercial services industry to deliver valuable tools for contractors that accelerate profitable growth.

Earlier this year, ServiceTitan released its second annual Commercial Service Report, underscoring the opportunity for the commercial services industry to adopt new technology and drive customer and business growth amidst changing market conditions.

“At ServiceTitan we’re laser-focused on empowering our customers to build a lasting legacy of success,” said Vahe Kuzoyan, President and Co-Founder of ServiceTitan. “We’re excited to leverage the depth and breadth of our technology platform built on our deep expertise within the contracting industry to drive immense value and greater ROI for Southland Industries.“

ServiceTitan and Southland Industries are both proud partners of the Mechanical Contractors Association of America (MCAA), sharing a joint mission to ensure all commercial contractors are equipped to deliver the best service and industry expertise to customers.

For more information about ServiceTitan visit: www.servicetitan.com, and find more information about Southern Industries at  at www.southlandind.com.