Top Business Risks to Meeting Goals Include Rising Labor and Overhead Costs (63%), Increasing Material Prices (51%), and the Shortage of Skilled Labor or Workforce Availability (40%) ServiceTitan (Nasdaq: TTAN), a software platform built to power the trades, today released its Commercial Specialty Contractor Industry Report, a study of over 1,000 specialty contractors primarily in plumbing, HVAC Read more
Industry News
Top Business Risks to Meeting Goals Include Rising Labor and Overhead Costs (63%), Increasing Material Prices (51%), and the Shortage of Skilled Labor or Workforce Availability (40%)
ServiceTitan (Nasdaq: TTAN), a software platform built to power the trades, today released its Commercial Specialty Contractor Industry Report, a study of over 1,000 specialty contractors primarily in plumbing, HVAC, and electrical, that focus a significant part of their business on construction. The report reveals that amid significant hurdles, contractors are pushing for growth, with 93% focused on winning new projects. Of the factors threatening growth, nearly two-thirds (64%) anticipate material prices to increase, making it harder to forecast job costs and protect margins. The report also found that to stay agile, contractors are focused on diversifying service offerings (43%), improving project execution (59%), and internal processes (51%), which is spurring software adoption.
“The commercial sector is in the midst of a perfect storm with a fluctuating economy, regulatory changes, and rising costs,” said Alex Kablanian, Vice President and General Manager, Commercial & Construction Markets. “In this challenging landscape, adopting innovative technology, including artificial intelligence, is essential for streamlining operations and driving profitable growth even in uncertain times. Historically, we’ve seen the best operators use periods like this as a catalyst to harden their business and build long-term durability and it’s our job to help our customers make that happen.”
Increasing profitability with better cash flow management
Specialty contractors are optimizing operations to grow revenue, but in parallel with rising material prices, rising labor, and overhead costs are top challenges that could impact revenue growth this year. Only 50% of contractors factor volatile material costs into their planning, and as a result, 36% are regularly adjusting budgets mid-project to deal with unexpected material costs. Approximately 83% of contractors cite budget overruns as a top issue, as well as unplanned risks not covered by contingency funds or change orders (70%). To keep projects on track and financially stable, 57% of contractors are prioritizing cash flow management. In addition, to stay profitable contractors are aiming to secure better material pricing, including using general contractors’ preferred suppliers for discounts (65%) and building stronger supplier relationships for better pricing (40%). To drive profits, contractors must be strategic about the projects they take on with the report revealing a strong focus on optimizing bidding strategy (51%) and three-quarters (75%) of contractors are increasing their client base. A majority of respondents (70%) are converting less than 20% of their bids, with the average bid conversion rate at 17.9%. Bid conversion rates have remained the same year-over-year for 79% of respondents.
Impacts of the labor shortage on business volume and retention strategies
The ongoing labor shortage continues to impact the commercial construction sector, forcing specialty contractors to re-strategize areas for business growth. Forty percent of respondents indicate labor shortages as a primary risk to meeting goals and over three-quarters (76%) report they are actively hiring. Among the contractors who are decreasing bid volume, 46% say it’s because of workforce and capacity limitations.
While 63% of contractors cite labor costs as a top risk to meeting goals, as businesses are met with slim talent pools, over half (55%) still plan to raise wages. To recruit and retain top talent, contractors must offer competitive pay and factor employee wage increases into their budget.
Optimizing workflows to drive larger profits
Amidst a competitive talent war and heightened cost pressures, contractors must readily adopt technology to remain agile to alleviate cash flow. Approximately 63% of respondents indicate enhancing budget forecasting and accuracy as a top priority for improving cost management, followed by managing change orders and variances (62%) and streamlining cost tracking and reporting (54%). Only 46% of contractors think they have the necessary tools to effectively manage costs. Timely payments are also critical to driving revenue growth. Nearly 80% of respondents indicated timely billing as a top strategy for being profitable, with the majority of contractors noting 38 days as the average length of time for payment.
Technology investments for more efficient operations
To optimize workflows and drive efficiency, 80% of contractors use communication tools, 51% use project management software, and 40% use specialized workforce management software. Almost half (49%) continue to use spreadsheets, highlighting the potential for wider technology adoption. Thirty percent of contractors are looking to invest in technology to achieve their goals, with 59% hoping to improve project execution and 51% their internal procedures. AI adoption is growing with 17% already seeing it impact their business. Contractors believe document management (57%), reporting (41%), project planning and scheduling (20%), bid management (19%), and equipment and fleet management (17%) will be the most significant way AI transforms their businesses.
“ServiceTitan’s end-to-end platform fuels the growth of billion-dollar businesses, empowering commercial construction companies with enterprise-level capabilities to scale to their full potential,” said Kris Blankenship, Industry Advisor at ServiceTitan for Commercial and Construction. “AI adoption will be critical as these businesses look to increase efficiency and raise their bottom line.”
To review the full findings and key takeaways, download the Commercial Specialty Contractor Industry Report here.
Malco one of just 1,500 U.S.-based Top Workplaces determined solely by employee feedback Malco Tools, one of the nation’s leading solution developers and manufacturers of high-quality tools for the HVAC and building construction trades, announces it has earned the 2025 Top Workplaces USA award, making it just one of 1,500 companies across the country to Read more
Malco one of just 1,500 U.S.-based Top Workplaces determined solely by employee feedback
Malco Tools, one of the nation’s leading solution developers and manufacturers of high-quality tools for the HVAC and building construction trades, announces it has earned the 2025 Top Workplaces USA award, making it just one of 1,500 companies across the country to earn this top recognition.
Top Workplaces USA celebrates organizations with 150 or more employees that have built great cultures. Results are calculated by comparing the survey’s research-based statements, including 15 Culture Drivers that predict high performance against industry benchmarks.
“At Malco, we believe that a strong workplace culture is the foundation of our success. This recognition is especially meaningful because it reflects the voices of our employees—the people who make Malco a great place to work every day. We are proud to foster an environment where our team feels valued, supported, and empowered to do their best work,” said Kirk Langbehn, vice president of people operations at The Malco Group.
Malco’s culture is focused on the company’s core values, which are at the center of every decision. This people- and values-centric approach has created a high level of trust, transparency, accountability and engagement among the team. Through programs like the company’s “Look Good, Feel Good, Do Good” campaign, Malco has made significant investments in workspaces, safety and training, internal awards and recognitions, and the implementation of several company-wide events and activities focused on strengthening the team and celebrating successes. Additionally, Malco places a high value on doing good in their local communities and has given back thousands of dollars and countless hours of volunteer time to organizations that are meaningful to the team.
“Earning a Top Workplaces award is a badge of honor for companies, especially because it comes authentically from their employees,” said Eric Rubino, Energage CEO. “That’s something to be proud of. In today’s market, leaders must ensure they’re allowing employees to have a voice and be heard. That’s paramount. Top Workplaces do this, and it pays dividends.”
The Top Workplaces program has a 15-year history of surveying more than 20 million employees and recognizing the top organizations across 60 markets for regional Top Workplaces awards.
Airzone expands its sales and support capacity coast-to-coast with six new partnerships. Airzone Control, leading global provider of intelligent HVAC control solutions, today announces partnerships with six top HVAC/R manufacturers’ rep firms spanning the United States. This is a major expansion of Airzone’s North American sales network, ensuring customers have local access to products, training Read more
Airzone expands its sales and support capacity coast-to-coast with six new partnerships.
Airzone Control, leading global provider of intelligent HVAC control solutions, today announces partnerships with six top HVAC/R manufacturers’ rep firms spanning the United States. This is a major expansion of Airzone’s North American sales network, ensuring customers have local access to products, training, design support and technical assistance for top-of-the-line zoning and Inverter (VRF / mini-split) control solutions.
Airzone’s new sales partners, listed from Northeast to Southwest, include:
- Williston-Allen Associates Inc. – serving Maine, Massachusetts, New Hampshire, Rhode Island, Connecticut, Vermont, New York, New Jersey, and Pennsylvania
- BRS Sales and Marketing – serving Delaware, Maryland, Virginia, DC, North Carolina, and South Carolina
- ISM: Inman Sales and Marketing Representatives – serving Alabama, Georgia, and Tennessee
- Appalachian Sales Group – serving Florida
- ASP: Air Solutions Partners – serving Louisiana, Texas, and Oklahoma
- TRC Sales – serving California, Nevada, Arizona, Hawaii, and Guam
This network of regional sales network partnerships ensures that Airzone customers can get knowledgeable assistance tailored to state and local HVAC regulations throughout the United States.
“Our partners know their state and local requirements, incentives, and programs inside and out,” says Victoria Garcia Massimo, National Sales Director for Airzone. “Whether you’re supporting heat pumps and auxiliary heating systems in Maine; integrating AHUs with demand response programs in Florida; or taking advantage of electrification incentives in California, your local Airzone rep can help you create the most efficient, reliable, and cost-effective solution possible.”
Airzone is scaling sales capacity at an important moment for the U.S. HVAC industry. Inverter technology is the fastest-growing segment of the American HVAC market, and this booming category relies on control gateways to connect to popular third-party smart thermostats, control systems and smart home platforms. Airzone’s flagship Aidoo control solution wires directly to the AHU, creating a completely reliable connection—and the company’s exclusive library of manufacturer protocols for top Inverter brands, including Samsung, Daikin, Mitsubishi, LG, Toshiba, Fujitsu, and Hitachi, ensures that the AHU operates at peak efficiency with no loss of functionality.
“Everyone wants to be able to control mini-split units over Wi-Fi—but the method matters,” says Nicole Silva, General Manager, TRC Sales. “This partnership with Airzone gives our dealers access to the most efficient and reliable VRF zoning control solution on the market.”
Aidoo also uniquely enables primary and auxiliary heating systems to be controlled by a single smart thermostat, a crucial benefit in regions with extreme temperatures.
“Regional lows regularly dip below the recommended operating temperature for heat pumps, so auxiliary heating is often a must,” says Ed Allen, Founder, Willison-Allen Associates. “With Aidoo, our distributors will be able to offer the single-interface control today’s homeowners expect, while also maximizing the efficiency of the heat pump and auxiliary system.”
Airzone’s no-bypass Easyzone all-in-one zoning kits can also help distributors meet client expectations for comfort and efficiency while adhering to new ASHRAE 15 refrigerant requirements. These intelligent zoning solutions allow integrators to control building temperature with fewer or smaller AHUs, sailing below refrigerant limitations.
“Easyzone is a proven solution for A2L refrigerant systems that European integrators have relied upon for years; we’re proud to bring these advanced solutions to U.S. customers,” says Richard Bishop, President, BRS Sales & Marketing.
“We pride ourselves in offering the most advanced products on the market, connecting our customers to efficient solutions that will stand the test of time. Airzone is an innovator with a proven track record for sustainability, reliability, and service. We look forward to helping our distributors use these solutions to develop next-generation HVAC applications,” adds Randy Inman, Owner, Inman Sales and Marketing.
Learn more about Airzone’s HVAC control and zoning solutions at airzonecontrol.com. To connect with your local Airzone representative, use the Airzone Sales Network rep finder tool.
Trusted manufacturer enhances commitment to customers with acquisition of leading manufacturer of high efficiency commercial gas and oil-fired water heaters. Bradford White Corporation, an industry-leading manufacturer of water heaters, boilers and storage tanks, announced today the acquisition of Universal Technologies of Wisconsin, Inc. , Bock Water Heaters, Inc., and Tank Technology, Inc. These businesses are Read more
Trusted manufacturer enhances commitment to customers with acquisition of leading manufacturer of high efficiency commercial gas and oil-fired water heaters.
Bradford White Corporation, an industry-leading manufacturer of water heaters, boilers and storage tanks, announced today the acquisition of Universal Technologies of Wisconsin, Inc. , Bock Water Heaters, Inc., and Tank Technology, Inc. These businesses are collectively known as Bock Water Heaters, the industry leader in oil-fired water heating and a well-known manufacturer of commercial and specialty water heating and storage products based in Wisconsin.
The relationship between the companies extends more than three decades, with Bock serving as both an important supplier and a valued customer to Bradford White. The longstanding business relationship has gradually evolved, making it a natural step for Bock to formally join the Bradford White family of companies.
“We know from first-hand experience Bock’s commitment to manufacturing high-quality products,” said Bruce Carnevale, president and CEO of Bradford White Corporation. “Our companies share many of the same values, and we’re excited to welcome the Bock family into ours. This deal strengthens our ability to support our customers and provide them with an expanded offering of products and solutions.”
Bock was founded in 1929 in Madison, WI, and has since expanded its production capacity with two separate manufacturing facilities in the Badger State. The company is widely recognized for its robust offering of oil-fired water heating products, as well as large, high input commercial condensing gas-fired water heaters. The acquisition will further expand Bradford White’s US-based manufacturing capacity and capabilities.
“Our longstanding relationship with Bradford White is built on a shared commitment to our customers and manufacturing best in class water heating solutions,” said Dale Einerson, CEO, Bock Water Heaters and TTI. “We’re thrilled to become part of Bradford White Corporation and continue to produce high-quality products under a company with strong customer relationships and that is culturally very much aligned with ours.”
This acquisition is the latest in a series of recent strategic acquisitions made by Bradford White that includes Electro Industries, Heat-flo and FloLogic.
“The industry is changing faster than ever and we’re continuing to grow to meet the evolving needs of our customers and bring them new and innovative solutions,” said Carnevale.
For more information about Bradford White Corporation, visit https://www.bradfordwhitecorporation.com.
The group’s revamped sponsorships provide contractor members with more value and opportunities for thought leadership Women in HVACR (WHVACR), a nonprofit organization dedicated to empowering women in the heating, ventilation, air conditioning and refrigeration trades, has announced its new 2025 sponsorship levels, which will bring more value to contractor members and allow them to support women Read more
The group’s revamped sponsorships provide contractor members with more value and opportunities for thought leadership
Women in HVACR (WHVACR), a nonprofit organization dedicated to empowering women in the heating, ventilation, air conditioning and refrigeration trades, has announced its new 2025 sponsorship levels, which will bring more value to contractor members and allow them to support women in the trades.
“After listening to feedback from our members, we are taking the opportunity to revamp our sponsorships to add more value for our contractors,” said Women in HVACR President Kristin Gallup. “It’s important that we improve our communication with our members, and these new sponsorship options will allow us to more effectively stay in touch with our members to let them know how their sponsorships are helping women in the skilled trades industry.”
These sponsorships enhance the industry workforce through education, mentoring and networking opportunities that support and empower women currently in the HVACR industry. Women in HVACR provides a sponsor’s female employees with opportunities to advance personally and professionally and boosts the sponsor’s profile in the HVACR industry.
Sponsorship levels include:
- Inspiration
- Champion
- Empowerment
- Visionary
- Luminary
- Guardian
The expanded benefits include a unique sponsor logo from Women in HVACR that can be posted to the sponsor’s website and on social media, tickets to the Women in HVACR conference, preferential booth placement at the conference, and expanded mentorship prospects.
Companies can become an endowment fund sponsor by purchasing an Angel sponsorship. The Angel sponsorship starts at $1,000, but those who want to support the program can donate as much as they like. These endowments go to sponsor scholarships and fund initiatives created by Women in HVACR to help women succeed in the trades.
“We are often asked by company owners about some of the best ways to recruit, hire and retain women in the trades,” Gallup said. “One of the best ways to do that is to sponsor organizations like Women in HVACR. These scholarships and endowments not only create scholarships, they also help us offer mentorship programs and provide ongoing educational programs for our members.”
Other benefits can include opportunities to showcase a sponsor’s thought leadership and dedication to diversity with a speaking opportunity at the AHR Expo in Las Vegas on Feb. 4-6, 2026, webinar collaborations, recognition during a monthly membership call and in a magazine ad in Women in HVACR’s new magazine, Elevate, and an interview on a Women in HVACR partner’s industry podcast.
For more information on how to become a Women in HVACR sponsor, visit https://www.womeninhvacr.org/sponsorship or call them at (480) 805-8403.