Five years after COVID and its ensuing ripple effects, the commercial service industry has welcomed back a long-lost feeling — optimism.
According to a recent ServiceTitan survey, more than 66% of contractors reported stable or growing revenues to start 2025, with 53% optimistic about the market.
“With COVID in the rearview mirror — a period where many contractors had to reshuffle their customer bases because they were exposed in retail and class A commercial offices — the market has now worked itself out,” said Charlie Warren, Vice President of Commercial and Construction at ServiceTitan.
“The upshot is that the current demand happens to be some of the most durable, exciting parts of today’s economy: industrial, healthcare, distribution, manufacturing, and of course data centers. I'm not surprised that the results of this survey say, ‘We have a lot of durability in our business.’”
ServiceTitan’s survey of 1,014 commercial owners and executives primarily in mechanical, electrical and plumbing was conducted by Thrive Analytics from May 5 to May 23, 2025.
While the overall takeaway revealed an optimistic view, commercial contractors are still concerned about familiar headwinds. According to the survey, the three most pressing concerns were:
The skilled labor shortage (52% of respondents)
Rising labor and overhead costs (45%)
Longer materials lead times (31%)
Raffi Elchemmas, the Executive Director of MCAA, stressed that contractors need to keep a pulse on parts availability and material lead times, especially with the threat of tariffs.
“There's going to be a cost for people to receive materials faster,” Elchemmas said. “So I think this is a moment for the commercial service contractor to focus on operational excellence.”
One way to accomplish that is by mastering cash flow. Survey respondents reported that the average time to send invoices is two days, while the average time to get paid is 28 days. There’s a variety of ways contractors are collecting payment. The top responses were:
ACH (37%)
Check (30%)
Credit card (14%)
Wire (13%)
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Warren stressed that the easier contractors make it for their customers to pay, the better they’ll look.
“How contractors bill and invoice is a representation of their brand,” Warren said. “It’s an overlooked way to highlight the overall product and offering.”
Another way contractors are boosting operational excellence is by utilizing preventative maintenance agreements (PMAs). A significant 63% of contractors reported that more than half of their customer base is secured by PMAs.
But Warren and Elchemmas stress that, by far, one of the most impactful ways commercial contractors can fuel growth and manage headwinds is by leveraging customer relationship management (CRM) systems. The survey echoes that sentiment:
70% of respondents are using a CRM to increase customer retention, increase lead conversions and improve their close rates.
Of the 30% who are not using a CRM, nearly half of them (47%) are considering it.
“CRMs are overwhelmingly impactful in supporting commercial service contractors to better communicate and build stronger, more trusted relationships with their customers,” Elchemmas said. “This is an area where if you're not doing it, you need to get on this train.”
“And it’s not just investing in technology. (Some contractors) might have four or five different softwares that they’re using. It's (important to) consolidate that technology into one or two platforms.”
Warren and Elchemmas agree that ServiceTitan, especially with its current use and forward-thinking approach to AI, is an all-in-one platform that can help contractors achieve their goals.
According to the survey, those goals include:
Increasing net profit margins (39%)
Optimizing existing processes (39%)
Growing recurring revenue (37%)
Retaining existing customers (33%)
But Warren reminded that at the end of the day, there’s only one goal that truly matters.
“Everyone wants a large maintenance base. But contractors’ recurring revenue is only as durable as their most recent service visit — both the quality of the interaction with the customer and how well they performed that work,” Warren said.
“That puts the onus on actually delivering.”
Of course, it helps when contractors are delivering during a time of optimism.
“Technology investments are driving growth, and workers are welcoming the adoption to help drive operational efficiencies,” Elchemmas said. “All things considered, the commercial service contractor is having a moment.”
