Hardscaping Report Lays Out Top Challenges

The hardscaping industry continues to benefit from strong demand for outdoor living spaces, but the Concrete Masonry & Hardscapes Association (CMHA) shows that delivering that work is becoming increasingly challenging. Labor shortages remain the industry's top concern, while rising insurance premiums, escalating overhead costs, increased competition and challenges securing H-2B visas are creating new obstacles to growth and profitability.

CMHA's annual Contractor Industry Report surveys contractors throughout North America and tracks trends, opportunities and challenges they are facing. While the report covers a broad range of topics, five key issues emerged as the most significant concerns for contractors in 2026.

Workforce Challenges Continue to Dominate

Finding and keeping qualified employees remains the industry's most pressing concern.

Recruiting skilled workers ranked as the No. 1 challenge facing contractors, while retaining quality employees also placed among the top concerns. As demand for experienced labor continues to outpace supply, many contractors are investing more heavily in workforce development, training and retention strategies.

Contractors are also navigating increasing financial and labor-related pressures across nearly every aspect of their businesses.

Increasing overhead costs remains a major concern as companies contend with higher labor, fuel, equipment and material expenses. Meanwhile, rising insurance costs debuted among the industry's top challenges, highlighting the growing impact of liability, workers' compensation and vehicle coverage costs on profitability.

New survey questions this year also revealed another challenge making an immediate impact: acquiring H-2B visas. As labor shortages persist, many contractors increasingly rely on seasonal workers to meet demand, but limited visa availability and a competitive application process are creating uncertainty around workforce planning and project scheduling.

While labor and costs dominate the conversation, competition remains a significant concern across the industry. With more contractors competing for projects and customers increasingly comparing options online, businesses are looking for new ways to differentiate themselves through expertise, craftsmanship, certifications and customer experience.

The full report provides additional benchmarking data, market trends and business insights designed to help contractors make informed decisions, improve performance and strengthen their businesses in an increasingly competitive marketplace. Contractors who participated in the annual survey receive a complimentary copy of the full report. Others may access the executive summary or purchase the full report on CMHA's website.