- 76% of exterior contractors are aiming for revenue growth in 2025, while only 56% expect it to happen.
- Key challenges include rising material prices (64%), labor shortages (58%), and increasing labor and overhead costs (53%).
- Contractors are exploring new business lines such as metal roofing (23%) and considering diversification opportunities like siding (40%) and solar (11%).
ServiceTitan (TTAN, Financial) has unveiled its second annual Exterior Services Report, highlighting optimism among contractors despite ongoing economic challenges. According to the report, 76% of contractors in the roofing, gutters, siding, and windows industries aspire to boost revenue by 2025, although only 56% anticipate achieving this growth. The study details significant hurdles such as escalating material costs (64%), labor shortages (58%), and rising labor and overhead expenses (53%), which threaten profitability.
In response to these challenges, contractors are adopting various optimization strategies. A substantial 62% are focused on reducing overhead costs, 56% are targeting a decrease in labor costs, and 37% are concentrating on enhancing marketing efficiency to increase profit margins. These efforts reflect a strategic shift towards more efficient business operations to combat rising costs.
The report also indicates a robust interest in diversification and expansion among exterior contractors. Notably, 23% of respondents are expanding into metal roofing, and 21% are planning to open new locations. Additional diversification opportunities being considered include siding (40%), roofing insurance claims (22%), doors (11%), and solar (11%). This interest in exploring new trades underlines the industry's proactive approach to growth and competitiveness in a challenging economic environment.
