ServiceTitan Inc. has released its third annual Commercial Service Market Report, surveying over 1,000 commercial owners and executives across various trades. The report highlights that 66% of commercial contractors entered 2025 with stable or growing revenues, despite challenges such as a skilled labor shortage, rising labor and overhead costs, and longer material lead times. More than half of the respondents remain optimistic about the market. The report emphasizes the importance of enhancing customer experience through digital platforms, with 44% of contractors considering it extremely important. Although 75% offer an online customer portal, only 26% use it for direct communication, presenting an opportunity for businesses to modernize their offerings. Alex Kablanian, Senior Vice President and GM of Commercial & Construction at ServiceTitan, notes that contractors face challenges from rising material costs and labor shortages, compounded by post-pandemic shifts and tighter regulations. To stay competitive, the industry must adopt smart technology and build strong customer relationships. Despite positive revenue trends, contractors are focused on increasing net profit margins, optimizing processes, and retaining customers amidst rising costs. Operational gaps, such as limited access to warranty data and parts availability, could hinder achieving these goals.