Ask contractors what keeps them up at night, and many will point to the challenge of finding, retaining, and supporting skilled workers. Across ServiceTitan’s 2026 industry research, labor costs and skilled worker shortages rank among the leading business risks for residential and commercial contractors, ahead of material costs, competition, and even a potential recession.
Labor is a top priority for contractors in 2026
According to the 2026 Residential State of the Trades Report, 60% of residential contractors identify labor and overhead costs as a top business risk, while 53% cite the skilled labor shortage. Commercial specialty contractors report similar concerns. In the 2026 Commercial Specialty Contractor Industry Report, 35% cite labor and overhead costs and 35% point to the skilled labor shortage.
Behind those numbers are the tradespeople working on rooftops, in crawl spaces, and inside electrical panels to keep homes comfortable, businesses operating, and communities moving forward.
This Labor Day, we celebrate their essential contributions and recognize the contractors investing in the future of the workforce. Businesses that prioritize recruiting, training, retention, and tools that help skilled workers make the most of their time will be better positioned to serve their communities and grow.
Discover more industry insights in the 2026 Residential State of the Trades Report and 2026 Commercial Specialty Contractor Industry Report.
Data from the 2026 Residential State of the Trades Report and the 2026 Commercial Specialty Contractor Industry Report.
