5 Moves Smart Contractors Are Making to Thrive in a Volatile Market

Commercial contractors are facing one of the most unpredictable economic landscapes in decades—tight labor, rising costs, interest rate shocks, and wavering capital spending. It’s easy to feel stuck. But top performers aren’t just weathering the storm—they’re growing.

At ServiceTrade, we monitor these industry trends and we see what’s working. The best contractors are doubling down on operational excellence, recurring revenue, and smart technology. Here are 5 powerful strategies that are helping them grow margins, retain talent, and boost valuation right now:

1. Streamline Operations to Protect Margins

Improve efficiency from quote to invoice—your fastest path to higher profits.

With the rise of AI and IoT, predictive maintenance is transforming commercial building services. Contractors who digitize workflows and prioritize scheduled service over emergency calls are building more profitable, predictable businesses.

Actions that drive impact:

• Avoid fixed-fee quotes. Use cost-plus pricing to protect margins from supply chain volatility.
  
• Prioritize preventive maintenance. Reduce the chaos and overhead of reactive work.
  
• Track key performance metrics. Monitor KPIs like revenue per technician and gross profit per hour to optimize each hour of technician time.
  

2. Turn Compliance and Cost Control Into Recurring Revenue

Become a strategic partner, not just a vendor.

Building owners and operators need help navigating compliance mandates, aging systems, and energy costs. Contractors who position themselves as strategic partners—rather than transactional vendors—build long-term relationships and predictable income.

Strategies to win the right work:

• Stay away from capital-dependent construction or break/fix work. Construction is too risky in a tight money environment, and break/fix work is administratively expensive and disruptive.
  
• Secure recurring equipment inspection agreements. Then optimize your repair pull-through process.
  
• Show, don’t just tell. Use photos and videos to communicate service value, not just invoice totals.
  

3. Boost Valuation with Efficiency and Recurring Revenue

Buyers love predictable profits—and efficiency sells.

M&A activity is surging. Companies commanding premium valuations have this in common: high-margin recurring revenue, strong EBITDA, and technology-enabled operations. A Charter Capital Partners Q4 report found that the mean EBITDA for field services company acquisitions was 13%. In short, companies with strong recurring revenue streams and compliance-driven services can command the highest valuations. 

Steps to command a premium:

• Focus on your best customers. Profitability—not volume—builds value.
  
• Implement field efficiency software. Companies using operations software, such as ServiceTrade, see up to 25% performance gains in year one.
  
• Use technology to strengthen customer relationships. Combine proactive, reliable scheduling with detailed and actionable customer communication about service work.   

4. Use Data to Drive Every Decision

Top contractors turn performance data into growth strategies.

The best-performing commercial service contractors use data to power technician productivity and business growth. Integrated software enables them to prioritize high-value jobs, close work orders faster, and unlock new revenue through proactive repairs.

Metrics that matter:

• Manage revenue per technician. Use dollars-per-day goals to optimize scheduling and prioritize work.
  
• Improve cash flow. Accelerate invoice cycles by connecting contracts, work orders, and completions.
  
• Increase repair conversions. Top performers quote faster and convert 20% of work orders into additional revenue.
  

5. Win the Labor Challenge with Technology and Career Pathways

Enable technicians to do more of what they’re best at.

A 14–20% skilled labor shortfall is colliding with 6–8% industry growth. Contractors who simplify technician workflows and invest in people will outpace those who don’t. It’s no longer just about hiring—it’s about enabling and retaining a skilled workforce that can deliver against profitability goals while serving customers and selling more business.

Workforce strategies that pay off:

• Cut the admin burden. Let technicians focus on what they do best—service and repair.
  
• Equip techs with job-critical info on their mobile devices. Fewer mistakes. Faster jobs. Less rework.
  
• Serve your best customers first. Prioritize value over volume and reduce costly “windshield time.”
  

The Path Forward

Contractors who embrace speed, data, and smarter workflows are poised to win—today and tomorrow. Whether it’s boosting revenue, retaining great talent, or attracting buyers, the most resilient companies are building their advantage now.

At ServiceTrade, we’re proud to help power that success.