The latest Exteriors Contractor Market Report by ServiceTitan reveals how roofing and home exteriors contractors are focusing on brand reputation and customer service to drive growth, amidst rising material costs and labor challenges.
In a recent industry insight, the commitment among roofing and home exteriors contractors to harness brand reputation and customer service as pivotal instruments for growth into 2024 has been underscored. This focus comes against a backdrop of both rising material costs and ongoing challenges in securing skilled labor—a scenario reflective of broader trends within the global trades industry.
ServiceTitan, a leading software solution designed specifically for the trades, has unveiled its Exteriors Contractor Market Report, providing valuable data from over 1,000 contractors spanning various sectors, including roofing, siding, solar installations, and more. The findings from this comprehensive survey illuminate the strategies and challenges that contractors in the exteriors domain are navigating as they aim not only to sustain their operations but to expand in a competitive market.
A significant takeaway from the report is the emphasis on growth, with the majority of contractors pinpointing customer acquisition (66%) and revenue escalation (65%) as their primary goals. In pursuit of these objectives, the sector is witnessing a concerted effort to streamline operational efficiencies, notably in labor costs, alongside endeavors to mitigate turnover and enhance technology adoption. Such strategies are indicative of a broader movement towards digital transformation within the residential service industry—a shift that ServiceTitan’s General Manager of Residential Markets, Chris Petros, suggests is integral to accelerating growth and competitiveness.
Adding an additional layer to the industry landscape is the increasing involvement of private equity groups and the trend towards consolidation. This entails acquisitions by contractors aiming to diversify their service offerings and expand geographically, facilitated by innovative technological solutions that bolster the operational capabilities of businesses within the exterior trades space.
Despite the challenges poised by staffing constraints and the escalating costs of materials—factors cited by contractors as their primary hurdles in 2024—there’s an overarching optimism regarding business growth. This sentiment is rooted in a strategic emphasis on nurturing strong brand reputations, delivering superior customer experiences, and maintaining high standards of workmanship. Interestingly, the report underscores a divergence in priorities between businesses and their clients, with reputation trumping experience and workmanship in the eyes of customers. This delineation highlights the crucial role of brand integrity and customer relationships in a contractor’s portfolio for building a durable client base.
The realms of remodeling and renovation are spotlighted as burgeoning opportunities for exterior contractors seeking growth avenues. Further, investments in roofing restoration, solar, and siding services are noted as focal points for businesses aiming to diversify and innovate their offerings.
Addressing the digital shift, the report highlights the leveraging of software in streamlining business processes. Contractors are increasingly turning towards technology to minimize administrative overheads and enhance customer service efficiency, with particular emphasis on estimating, project management, and asset management solutions.
In conclusion, the findings from ServiceTitan’s Exteriors Contractor Market Report sketch a landscape where strategic technology investments, coupled with a focus on brand reputation and customer service, are key to navigating the hurdles of material costs and labor shortages. As the industry continues to evolve, these insights provide a valuable framework for contractors in the exteriors sector aspiring to grow and excel in an increasingly digital and competitive environment.