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Despite Economic Uncertainty, New ServiceTitan Data Finds 76% of Exterior Contractors Seek Revenue Growth and Profitability in 2025

1. Exterior contractors aim to grow revenue and profitability despite challenges. 2. Increasing material prices and labor shortages threaten industry growth. 3. 62% of contractors prioritize optimizing overhead and labor costs for profitability. 4. New business lines like metal roofing and commercial sector entry are growing. 5. Digitizing customer experience is a key priority for contractors in 2025.

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FAQ

Why Bullish?

Despite challenges, high demand for digital solutions suggests long-term revenue potential. Historical examples show similar transitions have positively influenced company valuations.

How important is it?

Strong focus on optimization and digital solutions aligns with TTAN's business model, suggesting potential stock price enhancement.

Why Long Term?

Contractors' focus on digitization and new business lines indicates long-term growth. The ongoing demand for tech solutions in traditional sectors can sustain profitability over several years.

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TTANCRMADBENOW
Tech Takes Center Stage with Contractors Targeting Optimizing Overhead Costs, Labor Costs, and Better Marketing Efficiency to Increase Margins April 16, 2025 09:00 ET  | Source: ServiceTitan LOS ANGELES, April 16, 2025 (GLOBE NEWSWIRE) -- ServiceTitan (Nasdaq: TTAN), the software platform that powers the trades, today released its second annual Exterior Services Report, a study of more than 1,000 contractors around the U.S., primarily in the roofing industry, as well as gutters, siding, and windows. The report reveals that exterior contractors seek to grow revenue (76%) and become more profitable in 2025. However, increasing material prices (64%), a labor shortage (58%), and rising labor and overhead costs (53%) could hinder growth and profitability. The industry must balance innovation, customer-first execution, and financial discipline to counter these challenges and drive sustainable growth and success this year. “Economic uncertainty continues to test the agility of the exterior services industry, while reaffirming its resilience. Businesses wanting to improve revenue growth and profitability in this environment can’t assume what's worked in the past will carry their business forward; instead, they need to equip themselves with the tools necessary to handle whatever new challenges emerge,” said Chris Petros, GM of Residential at ServiceTitan. "Real-time insights to help spot issues and opportunities, tools that allow for business changes to be implemented seamlessly and at scale, and a continued focus on a customer-first approach, should work in concert to give businesses a competitive advantage and drive continued improvement in business outcomes." Exterior contractors optimize operations to boost profitabilityThe pressures facing exterior contractors haven’t disappeared – they’ve followed the industry into 2025. Roofing contractors, in particular, are contending with the impact of increased prices on critical materials like metal. While over three-quarters of respondents say they’re focused on growing revenue, only 56% said they expect it to happen in 2025, with another 36% saying they expect revenue to remain the same. In light of these challenges, exterior services businesses are prioritizing optimization efforts — 62% of respondents are pursuing a strategy of optimizing overhead costs, labor costs (56%), and better marketing efficiency (37%) to increase margins. New business lines are fueling momentumTo fuel their growth trajectory, roofing and exterior contractors report that they are expanding into metal roofing (23%), adding a new location (21%), and acquiring another business (6%). The top new trades the respondents have considered adding are siding (40%), roofing insurance claims (22%), doors (11%, and solar (11%). Additionally, the respondents cited entering the commercial sector (35%) and offering new trades (31%) as opportunities. While exterior contracting businesses are employing a mix of strategies to increase revenue, the industry remains divided on pricing — 31% of respondents say they will increase prices by 4-5%, over one-third (35%) say they won’t. Personalizing and modernizing CX are rising in importanceModernizing and digitizing the customer experience (31%) is the fourth-most mentioned goal for 2025 among contractors in the survey, behind growing revenue, increasing profit margin, and improving cash flow. Similarly, most respondents said that a key opportunity is customizing and personalizing the customer experience (52%), followed by digital transformation and online presence, which 42% noted as an opportunity for the next two years. To get the results they want for their business, 18% of respondents listed investing in additional software as a business goal. In comparison, 37% identified comprehensive features tailored to the industry as a key consideration. Automation capabilities (36%) and ease of use for the team (32%) were the next-most-valued aspects of software by contractors, followed by integrations with other software they use (20%). To view the full findings and key takeaways, download ServiceTitan’s second annual Exterior Service Report here. About the researchThe survey was conducted on behalf of ServiceTitan by Thrive Analytics, an independent third-party research provider and a leading digital marketing research firm, polling more than 1,000 owners and executives of primary exterior services. For the purposes of this survey, an “exterior business” is defined as roofing, gutters, siding, solar, windows, skylights, decks, doors, and insulation companies with more than $1M in sales revenue. This research is for informational purposes only and ServiceTitan provides no assurances (express or implied) with respect to the accuracy of the survey data. Forward-looking economic and industry outlooks represent the views of the survey respondents, and may not represent the view of ServiceTitan or its affiliates. About ServiceTitanServiceTitan is the software platform that powers trades businesses. The company’s cloud-based, end-to-end solution gives contractors the tools they need to run and grow their business, manage their back office, and provide a stellar customer experience. By bringing an integrated SaaS platform to an industry historically underserved by technology, ServiceTitan is equipping tradespeople with the technology they need to keep the world running. © 2025 ServiceTitan. All rights reserved. ServiceTitan, the ServiceTitan logo, and all ServiceTitan product and service names mentioned herein are registered trademarks or unregistered trademarks of ServiceTitan, Inc. in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). Press ContactMax Wertheimer ServiceTitan, Inc.Press@servicetitan.com

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