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ServiceTitan released its 2023 Residential Contractor Report.
The survey involved more than 1,000 contractors in the U.S., including the trades of HVAC, plumbing and electrical to appliance repair and pest control, more than 20 trades overall. The survey was not limited to ServiceTitan customers.
Highlights of the survey included:
- Revenue increased for only 26 percent of contractors.
- Revenue stayed the same for 35 percent of contractors in the survey, and 38 percent saw a revenue decline.
- Still, 34 percent of contractors enjoyed increased profits in 2022. Annual profits remained the same for 52 percent of respondents, and 13 percent experienced reduced profitability.
- Seventy-one percent of respondents said word of mouth was their biggest driver of business.
- Seventy percent fear a recession as the biggest inhibitor they face.
- Forty-nine percent named the labor shortage as the biggest inhibitor, 44 percent said competition and 41 percent an increase in material prices.
- Twenty-nine percent said they plan to increase their use of technology in the next year.
- On average, only 7 percent of revenue came from financing, limiting some customers’ ability to get the services they need.
