ServiceTitan: 63% of Residential Services Businesses Are Experiencing Consistent Growth

LOS ANGELES, CA — ServiceTitan (Nasdaq: TTAN) has released its second annual Residential Services Report, providing valuable insights into the current state of the industry. The report, based on a study of over 1,000 residential service contractors across the US in HVAC, electrical, plumbing, roofing, and other sectors, indicates that the majority of the industry (63%) is thriving or experiencing consistent growth and is positioned for continued success. (ServiceTitan users are more likely to report their businesses thriving compared to those using competing platforms, with, notably, no ServiceTitan users reporting their businesses as struggling.)

A Resilient Market

"Residential contractors benefit from an exceptionally resilient market. When critical home components break down, they often become a top priority in household budgets," said Chris Petros, General Manager of Residential Construction at ServiceTitan. "That said, great business leaders excel in two key areas during challenging times. First, they refine their sales funnel, ensuring marketing spend is optimized, call centers maintain strong performance, and individual team members operate at peak efficiency. Additionally, they leverage technology to implement business practice changes quickly and at scale. For example, if a company decides to slightly reduce prices and offer financing, those adjustments can be implemented and reflected in the field within minutes."

Despite an evolving economic landscape, the industry shows vigor, with a majority of businesses reporting revenue between $1-$19 million. Only 19% of the respondents revealed they were “surviving,” and 18% reported their business was “struggling.” With this in mind, residential contractors across all surveyed businesses named growing revenue and retaining existing customers as their top two business goals for 2025, and acquiring new customers and improving their cash flow evenly matched for their third priority. 

Comparatively, thriving contractors are setting themselves apart from the competition by focusing on modernizing the homeowner experience, investing in additional technology, and purchasing more tools and trucks. Labor and overhead costs, the shortage of skilled workers, and rising material prices are the largest risks to meeting goals in 2025.

Customers Prefer Choices

Homeowners appreciate choices and thoughtful guidance that puts them in the driver's seat. Over half (54%) of thriving contractors offer three estimates to at least half of their jobs: Good, Better, and Best. These options weigh different factors, including price, so customers can make more informed decisions for their home and wallet. Unlike thriving organizations, struggling businesses provide three estimates on less than 10% of jobs. This suggests that struggling businesses could benefit from adopting a multi-choice approach to proposals, and they might optimize their process to improve customer satisfaction and drive new business opportunities. 

Other Findings

To reach and engage with customers and prospects, 64% of contractors still rely on phone calls as the dominant form of communication. Still, in a year where revenue growth is paramount, thriving residential service businesses prioritize online booking forms (10%) and text messaging (7%). Creating seamless interactions with prompt response times can influence a homeowner's choice to do business and build rapport. 

Another tactic that residential services businesses are utilizing to generate revenue is actively following up on unsold estimates. Nearly half (47%) of contractors with annual revenue of $10 million or more said that following up on estimates results in 11-15% of their income. If they follow up on unsold estimates, 39% of thriving businesses generate 1-15% of additional revenue, while 42% of surviving businesses and 23% of struggling businesses generate 1-15% of additional revenue. Attentive follow-up shows the customer from the beginning that they are a priority.

Review the full findings and key takeaways from ServiceTitan’s Residential Services Report at www.servicetitan.com/guides/residential-trades-report-2025. 

About the Research

This research was conducted by Thrive Analytics on behalf of ServiceTitan, polling more than 1,000 residential contractors representing a variety of geographical regions, business growth stages, and revenue levels. This research is for informational purposes only, and ServiceTitan provides no assurances (express or implied) regarding the accuracy of the survey data.