Key Performance Indicators That Drive Contractor Business Value
If you’re looking to sell your commercial service business, you probably know this: buyers don’t just want a good business, they want a predictable one. Amid skilled labor shortages, fluctuating material costs, and tighter capital budgets, the commercial service businesses that stand out are those that can show consistent, reliable performance.
KPIs offer a data-backed story of your company’s health, stability, and growth potential.
Whether you’re preparing for acquisition or simply want to build a business with long-term value, this post will explore the financial, operational, and customer-focused KPIs that increase your EBITDA multiple and make you more attractive to buyers.
Why KPIs Matter in Business Valuation
Strategic buyers, private equity firms, and even larger contractors evaluating acquisitions all look for one thing: proof that your business works—with or without you. KPIs offer that proof.
Strong KPIs signal to buyers that your business is well-managed, profitable, and scalable. They reduce risk in a transaction and help justify a higher EBITDA multiple, the valuation metric that determines your sale price. Buyers and brokers alike use these KPIs to assess your company’s ability to generate revenue predictably and profitably over time.
In short: KPIs don’t just describe your business, they define its value.
The Most Valuable KPIs for Commercial Contractors
Let’s break down the metrics that make the biggest impact across three key areas: financial performance, operations, and customer satisfaction.
Financial KPIs
1. Gross Profit Margin This metric reflects how efficiently you turn revenue into profit after direct costs. In an environment where materials and labor costs are rising, protecting your margin is critical. Contractors with cost-plus pricing strategies are better able to preserve profitability and scale with confidence.
2. EBITDA Buyers use EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) as a standardized measure of profitability. A high and steady EBITDA signals a financially healthy business. Even more important is the predictability of EBITDA—made possible through stable, recurring service agreements, which provide insulation against volatile project pipelines and uncertain capital budgets.
3. Revenue per Technician This KPI shows how much revenue each technician generates and is especially important amid the skilled labor shortage. High-performing teams maximize technician hours through better scheduling, fewer callbacks, and reduced windshield time—all of which increase this metric.
4. Cash Flow Cash is king. Positive, consistent cash flow indicates a business that can support operations and weather tough periods without relying heavily on debt.
5. Accounts Receivable Turnover Slow collections can kill deals. Buyers want to see that you collect on work quickly and consistently—evidence of both customer quality and billing efficiency.
Operational KPIs
1. Technician Utilization Rate Are you maximizing your most expensive resource? This metric tracks how much of a technician’s time is spent on billable work. Reducing travel, admin distractions, and idle time boosts both revenue and morale.
2. Service Agreement Renewal Rate Recurring contracts are a key source of predictable revenue. High renewal rates demonstrate customer satisfaction and a sticky service model.
3. First-Time Fix Rate This measures how often your team resolves issues on the first visit. A high rate reduces callbacks, increases customer satisfaction, and makes your business more efficient.
4. Work Order Completion Time Buyers want to see tight, efficient operations. Faster job completion means more work done with the same resources—an indicator of strong internal systems.
Customer-Related KPIs
1. Customer Retention Rate Acquiring new customers is expensive. Retaining them—and the recurring revenue they bring—is a cornerstone of business value. Strong retention rates show that your company consistently delivers value.
2. Customer Satisfaction (Net Promoter Score) High NPS scores reflect loyal customers and a strong reputation—both critical for attracting and retaining high-value clients.
How to Improve These KPIs
Improving KPIs takes more than good intentions—it takes the right tools and systems. That’s where ServiceTrade comes in.
Boost Technician Productivity: ServiceTrade helps your office assign the right technician to the right job at the right time with everything they need. Technicians spend less time on admin and more time doing great work—improving utilization and revenue per tech.
Increase Customer Retention: Our platform supports transparency, communication, and service excellence—making it easier to show customers the value you deliver and win their loyalty.
Protect Gross Profit Margin: With cost-plus and markup pricing workflows, ServiceTrade helps you quote work more accurately and profitably—especially in volatile cost environments.
Streamline Operations: Get real-time visibility into work orders, technician schedules, and billing, so you can tighten completion times and eliminate bottlenecks.
Track What Matters: ServiceTrade makes it easy to monitor your KPIs, so you can adjust quickly and stay on track toward your strategic goals.
Whether or not you’re thinking about selling your business one day, tracking and improving your KPIs is essential. These metrics offer a window into your company’s performance and future potential. They help you operate more strategically today, and make your business more attractive to buyers tomorrow.
Want to get started? Let KPIs be your guide, and let ServiceTrade be your partner.
As commercial service contractor, you must manage a perpetually fluctuating volume of work orders. A slow week is followed by a weekend full of repair requests. A big project lands on your plate, spreading your resources thin. A heat wave or polar blast initiates an early start to your busy season.
Meeting the demands of busy spikes and seasons can put a strain on your techs—hurting retention and morale. But with labor shortages and margins in mind, growing your team to meet temporary demand is not realistic.
What makes more sense is to expand your existing team’s capacity with a technology solution that automates and simplifies many of their tasks. Increasing the productivity of your current team not only allows room for more business, it also improves the quality of your service.
In this article, we’ll focus on freeing your most valuable resource—your technicians—from the time traps of busy work so they have more time and energy to do the job they’re specially trained to do.
Freeing Your Techs From Busy Work
By allowing techs more time for their primary responsibilities, you can improve overall efficiency and satisfaction for both techs and customers. Some benefits of improved technician efficiency include:
Increased Productivity
When technicians spend less time on administrative tasks, they have more time to focus on maintenance, installs, and repair work. This leads to faster completion of jobs, resulting in improved productivity for the business.
Improved Employee Satisfaction
Technicians often get into the field because they enjoy hands-on work and problem-solving. By reducing tedious admin work, techs are able to spend more time doing what they love and are trained to do. This equals improved employee satisfaction and reduced turnover rates.
Enhanced Customer Experience
Removing the burden of busy work enables techs to perform maintenance, repairs, and inspections more quickly and effectively. This leads to improved customer satisfaction and increased customer loyalty, winning you repeat business and positive referrals.
Here are some key ways to give techs back their time.
Less Time Behind the Wheel
The busy work: Technicians are spending a large portion of their days sitting in traffic or driving long routes created by reactive and inefficient scheduling.
Solution: Technology-assisted scheduling that prioritizes convenient routes and fewer miles can reduce windshield time and give techs back a significant chunk of their day.
Fewer Phone Calls
The busy work: Without access to real-time work order changes, location details, equipment history, and other customer data, your techs find themselves consistently dialing the office in search of the information they need.
Solution: Mobile access to real-time customer data gives techs the information they need without disrupting their task list to call the office. Bonus: A software solution that centralizes real-time data ensures your office staff and technicians have the same, up-to-date information at all times.
Fewer (and Easier) Administrative Tasks
The busy work: Technicians are spending too much time on administrative tasks, like creating invoices and quotes, that could be assigned to the office. Additionally, the manual processes of time tracking and keeping paper records are inefficient and burdensome.
Solution: Two solutions here. One: Narrow you techs’ responsibilities to their incredibly valuable skilled work, assigning administrative tasks to your office. And two: use a commercial field service application that includes time-tracking software for contractors, digitizes paperwork, automates time tracking, and allows techs to easily upload supporting media saves time and eliminates frustration in your tech’s day. These two things will give your techs more time to do their best work, find more repair opportunities, and service more facilities in the day.
Less Time at the Office
The busy work: Dispatching from the office and returning there at the end of the day is wasting your tech’s time and reducing the number of jobs they can complete.
Solution: Enabling your techs to dispatch from their homes and submit work order paperwork electronically eliminates the need for frequent office visits, improves routes, and gives your team back time to do more—and better—work. It also allows the office to close out work orders as soon as they’re completed rather than having to wait for techs to deliver paperwork to the office.
Giving Busy Work the Boot With the Right Technology
The benefits of optimizing workflows for your technicians are many. Better employee satisfaction and retention; more efficiency in the field; better customer service; and smoother overall operations in your business. Finding the right tool(s) and leaning on technology for improved efficiency is essential.
ServiceTrade is a premier platform built specifically for commercial service contractors. Learn how our platform can help you give techs (and your office staff) back their days by booking a demo.
Webinar Recap: 3 Costly Mistakes Fire Protection Contractors Make
You know safety comes first. But even experienced contractors can fall into patterns that lead to more risk and less profit. In a recent ServiceTrade webinar, industry experts shared the top three mistakes they see and what to do instead.
Here’s the recap.
Mistake #1: Relying on Paper and Manual Processes
“Moving away from paper isn’t just a tech upgrade—it’s a risk reduction strategy.”
Manual methods are still surprisingly common in the industry—from paper inspection forms to spreadsheets and siloed communication. While they may feel familiar, they introduce risk at every step.
Why is this a problem?Because paper forms get lost. Data entry gets delayed, or skipped. Inspection reports are incomplete or non-compliant. The result? Increased exposure to legal claims, delays in invoicing, and a trail of inconsistencies that inspectors and customers alike notice.
What to do instead: Digital inspection forms, especially ones that are NFPA-compliant and mobile-friendly, help standardize and streamline the entire workflow. With required fields, code references, and real-time sync, technicians are guided through inspections accurately. You get faster, better inspections with less chance of missing something important.
Mistake #2: Missing Inspections and Inconsistent Follow-Ups
“If you’re not proactively managing your service intervals, you’re playing defense. Automation is what turns you into a strategic partner.”
It’s easy to fall behind on recurring inspections, especially when juggling multiple contracts and jurisdictions. But missed service dates can cause serious headaches: fines, unhappy customers, and even lost contracts.
What to do instead: Automate scheduling with software that reminds your team when inspections are due and follows up on repairs. It can even send reminders to customers. This helps you stay on top of everything without extra stress.
Mistake #3: Weak Documentation of Deficiencies and Repairs
“Documentation is about protecting your team and proving your value. It turns your work into evidence.”
Think of documentation as your business’s insurance policy. When it’s weak or incomplete, your exposure grows.
Inadequate records can lead to denied insurance claims, lawsuits, failed inspections, or lost trust. It also slows down internal communication—causing confusion between technicians, office staff, and customers.
What to do instead: Build a detailed documentation system. Every deficiency, every repair, every customer interaction should be captured in a centralized platform with photos, notes, timestamps, and signatures included. This makes service transparent, both internally and to regulators.
Better Systems = Better Business and Less Risk
“Your systems should make your life easier, not harder.”
The most successful fire protection contractors aren’t just great at inspections, they’re great at operations. What separates them is how well their internal systems support accuracy, speed, and accountability.
With the right platform in place, you can:
Follow NFPA rules every time
Stay on schedule and never miss inspections
Send invoices faster and get paid sooner
Make customers feel confident in your work
Help your team stay focused without burning out
ServiceTrade gives you the tools to make all this happen—without adding more stress to your day.
What does the future look like for fire and life safety contractors?
At the 2025 NAFED Conference, the message was clear: the future belongs to smart, scalable, technician-first businesses.
From cutting-edge tech to old-school fundamentals that still matter, this year’s sessions offered practical insights for contractors ready to grow.
Here are five key takeaways that stood out for fire and life safety businesses looking to level up.
James Jordan explained AI for Fire Contractors to a standing-room-only audience.
1. Smart, Scalable, and Technician-Friendly
In “Busting Myths About AI in the Service Industry,” ServiceTrade’s own James Jordan pulled back the curtain on what AI is (and isn’t) for contractors. Spoiler: it’s not a futuristic luxury for Silicon Valley firms, it’s already here, helping fire protection businesses save time, improve accuracy, and grow faster.
Early adopters of AI have an edge in the industry, and as James proved, AI isn’t so scary. Even free tools can bring new efficiencies to your business and elevate your team—without replacing them.
2. Surviving the Labor Shortage Means Winning the Talent War
Hiring has never been harder, and keeping good people is even harder still. In his keynote, workplace strategist Jeff Butler shared real-world strategies for attracting and retaining the next generation of techs.
The big shift? Younger workers aren’t just looking for a paycheck, they’re looking for purpose, flexibility, and tools that actually make their jobs easier. Digital workflows, paperless service, and clear career paths aren’t optional anymore, they’re what gets people in the door (and keeps them there).
Companies that clearly communicate why their technicians’ work matters — and back it up with real stories and recognition — have a competitive edge. Jeff’s example of asking new hires to write their answer to the question, “This is why I work here” to create an early connection and commitment stands out as one we can’t wait to adopt.
If your team can’t operate without you, growth will always hit a ceiling.
Jeff Radichel’s breakout session, “The Art of Delegation – Building a Scalable Team,” walked through practical ways leaders can begin handing off responsibility and why delegation is the key to a sustainable, scalable business.
For contractors juggling day-to-day chaos, the takeaway was that building systems and trusting your team is the fastest path to freedom.
4. First Impressions Still Matter
In the field, your techs are your brand. Vicki Whitmire, of Peach State Fire’s session, “First Impressions = Win or Lose,” was a powerful reminder that professionalism never goes out of style. Whether it’s personal appearance, vehicle presentation, or communication habits, customers notice — and they remember.
Vicki highlighted the need for professionalism in tech behavior, including social media policies and handling of sensitive sites. Many members say collecting short, effective customer surveys can drive both quality control and online reviews. The best advice we heard in this regard is to call anytime you get negative feedback, it can save the customer relationship.
The session sparked strong discussion around whether or not to install cameras in trucks. Many have adopted this new technology while others are still in evaluation. Some noted that camera footage saved their company on liability insurance and reduced their overall insurance premium.
Combined with digital tools that send polished quotes, reports, and reminders, a professional presence builds trust and keeps your company top-of-mind.
5. The Industry Is Evolving — Fast
New markets (like cannabis facilities), new codes (like NFPA 660), and new standards (like those shaping portable extinguisher exchange programs) all made appearances at this year’s show. Staying compliant and competitive means staying informed and being ready to adapt.
For contractors using ServiceTrade, that adaptability is built in. With centralized records, automated scheduling, and real-time updates, you’re always ahead of the curve — no matter how fast the code standards change.
NAFED 2025 wasn’t just about what’s changing — it was about how fire protection contractors can thrive because of those changes. Whether you’re focused on growth, efficiency, or elevating your team, the message is clear: the businesses that lean into tech, invest in people, and stay sharp will lead the way.
Tariffs and the New Rules of Resilience in Commercial Service
The tariffs announced earlier this month have now been paused for 90 days. What will happen next? We can’t be sure. But one thing is clear: contractors need to plan for change, not just respond to it.
For fire protection and mechanical contractors, resilience means having the right systems in place to stay steady when external conditions shift. It’s not just about absorbing cost changes, it’s about staying flexible, communicating clearly, and keeping your operations running smoothly.
In this article, we’ll explore effective ways for contractors to stay strong, even during uncertain times.
How Trade Policy Affects Contractors
Tariffs affect contractors in many ways. The problems often start with suppliers and reach all the way to the jobsite. Here’s how:
Parts costs become more unpredicatbale. Many key parts—like HVAC units, pumps, valves, or fittings—are made in or include parts from other countries. Tariffs can raise the cost of these items by 10% to 40%, or even more in some cases.
Projects can take longer. Tariffs can slow down supply chains, especially when ordering big equipment. Delays mean missed deadlines.
Profits get smaller. If you already agreed to a price and then new tariffs are implemented, you might lose money if your costs go up.
Customer communication is more important than ever. Higher prices and missed timelines are hard to explain unless you’re open and honest about what’s going on.
How Contractors Can Respond to (Potential) Tariffs
1. Focus on Regular, Preventive Service
Relying too much on emergency jobs can hurt your bottom line, especially when parts are expensive or hard to get quickly. That’s why many contractors are moving toward planned, recurring maintenance.
This kind of work helps you:
Reduce urgent parts ordering and inventory risk.
Lock in recurring revenue.
Build long-term relationships with clients.
Gain more control over when, where, and how parts are sourced.
Predictable work leads to steady profits and smoother operations.
2. Embrace Dynamic Pricing Models
Fixed prices can be risky when costs are changing fast. Instead, some contractors use cost-plus or time-and-materials pricing for certain jobs. This gives them room to adjust prices as needed.
Here are some tips:
Add language in contracts that allows for price changes
Show labor and materials separately in your quotes
Explain to customers how this protects both sides when prices change
3. Improve How Work Gets Done
When prices go up, you can protect your business by working smarter. Small changes can make a big difference.
Try to:
Fix things right the first time to avoid repeat visits
Plan routes better to cut down on driving time and overtime Make sure techs have what they need before they go to a job
Speed up billing and cut down on paperwork delays
Every minute saved helps keep your jobs profitable.
4. Strengthen Supplier Relationships and Inventory Practices
In a tariff-driven economy, your supplier strategy matters more than ever. Smart contractors are:
Working with more than one supplier so they’re not stuck waiting.
Planning ahead for what parts they’ll need.
Stocking up on key items that may be delayed or go up in price.
Looking for good replacements if some parts get too expensive.
Being prepared on the supply side helps everything else run more smoothly.
5. Be Clear with Customers
Your customers know that tariffs have been implemented and prices are rising. What matters most is how you talk to them.
Be open and professional. Share updates early. If prices go up or a delay happens, explain why.
Ways to build trust:
Break out pricing in proposals so cost increases can be traced to materials.
Send status updates when project schedules shift.
Provide photos, videos, and clear documentation to show the value of completed work.
Good communication builds stronger customer relationships.
6. Track Key Numbers
In times of change, it’s important to keep a close eye on your numbers.
Ask yourself:
Which jobs are making less money?
Where are we overspending on materials?
Are techs spending time on the right work?
How fast are we sending out invoices?
Knowing the answers helps you adjust quickly before small problems become big ones.
Where ServiceTrade Can Help
All of the ideas above can work for any contractor. But using tools to help manage them makes a big difference.
ServiceTrade supports the strategies outlined above by enabling:
Predictable maintenance workflows
Real-time KPIs and dashboards
Streamlined quoting and dynamic pricing
Proactive communication with clients
Optimized scheduling and technician productivity
Integrated parts tracking and cost analysis
You don’t need software to respond to change, but the right tools can make it much easier.
One Last Thought: Predictability Is Your Edge
When the world feels unpredictable, being the contractor who shows up on time, sticks to budgets, and explains things clearly is a big win.
Tariffs are just one of many challenges. But the contractors who stay flexible, work smart, and keep their customers in the loop will come out ahead.
By focusing on clear processes, strong relationships, and good tools, you’re not just reacting to change, you’re building a business that can thrive in any condition.
8 Ways to Sell Commercial HVAC Service Contracts in 2025
Service contracts and maintenance agreements are a core focus for commercial HVAC businesses. They reduce your need to drum up constant business by allowing you to rely on steady income from existing, long-term clients.
The benefits are therefore pretty clear, but the means are a little more opaque—namely, how can you convince people to sign a contract with you?
The good news is, there are a few different ways to package such agreements to make them attractive to clients; you just have to do it in a way that clearly demonstrates value to the client. If you’re wondering how to sell HVAC service contracts in 2025 and beyond, look no further.
Elements of Commercial HVAC Service Contracts
Before we discuss ways to sell mechanical and commercial HVAC service contracts, it’s beneficial to understandwhat commercial HVAC contracts include.
Service agreements come in many forms, with many variable terms, depending on your business and customers. The main variables are similar across the board, though, and should include:
How often the service will occur
Whether the service will happen on a regular basis, or a set number of times as needed
Which services are covered under the contract
How often full preventative maintenance on HVAC equipment will occur (versus, say, quick routine inspections)
The Value of Commercial HVAC Maintenance Agreements
HVAC service contracts are hugely beneficial, and not just for the service provider in terms of monthly revenues.
In fact, they give the customer peace of mind, demonstrating to them that they don’t need to be on alert for problems or breakdowns in the system. Instead, they can rely on you to ensure that doesn’t happen – and to take care of things pronto if it does. Plus, in a slow or unpredictable economy, many facility owners and managers will move toward maintaining their current equipment (rather than replacing it).
What does that mean for you? Well, if you’re a business that relies largely on installs and/or construction projects, you may find leaning into service a good strategy for the year and beyond. If you’re a company who already focuses primarily on selling service contracts, then this is a good time to sell bigger contracts to better customers.
8 Ways to Increase Service Agreement Sales for Your Commercial HVAC Business
There are numerous ways that commercial HVAC companies can increase sales of service agreements, and we’ve covered 8 here. Note that you don’t need to try and implement each of these ways of selling HVAC service contracts all at once. That will quickly lead to overwhelm and a disorganized business strategy – and no one wants that.
Instead, read through this list and choose two or three you think could mesh pretty well with your current business development strategy. Start with tips 1-4 to ensure a solid foundation of service contract value and sales strategy. As you successfully weave those into your routine, add a few more.
With patience, you will transform your commercial HVAC business into one that is not only lucrative but resilient against economic changes.
1. Get Your Team On Board
It may seem unnecessary to say, but sometimes you need to start with the basics and make sure everyone on your team understands the value of selling maintenance contracts to commercial HVAC clients. If the people who work for you don’t see why a maintenance contract is of value, then you can’t expect them to jump on board readily.
More than knowing what’s in it for them, though, your staff need to comprehend what’s in it for prospective customers. Only then can they effectively sell it while they’re on the phone or in the field. And since your staff are often the face of your company – you can only be in so many places at once, after all – you need to trust them to get the job done.
If you haven’t already, make sure you sit down with your team and talk through service contracts: why they matter, how to tell customers about them, and how to follow through.
2. Sell What Your Prospect Needs
Don’t oversell your prospect on a ton of services that you know they don’t need yet — that’s no way to instill confidence and keep your customer long-term. On the same token, you shouldn’t undersell them in order to get them to a lower monthly rate, either. They need the services they need in order to keep equipment running and by providing fewer services than necessary, you may end up neglecting some equipment, leading to breakdowns and decreased customer trust.
The best way to respect your customer base is by providing detailed proposals that explain exactly what, when, how, and why each service is recommended. If you are proposing a package or contract, you’ll need to give a good reason why they should pay you more money upfront, or over a period of time, rather than as needed for maintenance visits. In fact, that’s one reason selling service agreements can be difficult.
However, if they see a lot of value in your explanation, they will perceive it not as a money grab but as a good-faith effort on your part to help them. Getting granular in your agreement reasoning and performance details can help not only get their business, but ramp up your referral traffic as well.
3. Reach the Decision Makers
The building engineer might seem like the smart person to reach out to, and in some cases, maybe they are – if only to get in the door. But you’ll learn real quick who the actual decision maker is in the situation, because you simply cannot sell a long-term agreement to gatekeepers or maintenance personnel.
When you call or contact the company to discuss your contracts and services, ask clearly for the person who can give the go-ahead. Don’t be afraid to say “Are you the one who makes these decisions? Are you able to greenlight a deal if you’re happy with what I can offer you? Great! When should we meet?”
4. Sell the Program
It’s not enough to sell the idea of maintenance. Your customers understand why a company wants to get them on a contract. Instead, make them understand what’s in it for them.
Don’t sell promises. Instead, sell examples that show them exactly what you provide and where you’ve provided it in the past. Explain how service lowers costs, reduces risk, and increases protection. Additionally, show them the program you use to track their visits and check in on their system. Make yourself out to be a benevolent Big Brother who knows what’s best so they don’t have to think about it.
If you don’t know how to do this, read up on some companies that are doing it well and thetakeaways from their success.
5. Offer Flexible Maintenance Plans
Business owners know they need regular maintenance, but they’re wary of signing up for something they might not need as often as they pay for. This is especially true if the only maintenance plan you offer includes a ton of the bells and whistles that your customer knows they won’t need.
Combat this with a range of tiered, flexible maintenance plan options. Perhaps one plan provides the absolute bare minimum, while the next offers a few nice-to-have services, and the top-tier plan pulls out all the stops. Or, think about creating an a-la-carte maintenance plan option to provide the ultimate in flexibility. Whichever structure you go for, make customers understand that your plans keep warranties in effect and ensure every HVAC unit receives the timely maintenance it needs, all without having to spend unnecessary funds.
6. Make Your Business Visible and Reputable Online
A leading study by Podium says that 93% of consumers pull up online reviews and rely on them when making purchase decisions. So, if you’re not already putting a sizable effort into maintaining your online presence, you’re a bit behind the game.
That said, you can catch up. You’ll need a website with a local SEO presence, and good reviews for prospects to find. Create a Google My Business account if you haven’t already, and encourage each and every customer to leave positive reviews about their experience with you.
7. Improve Retention by Providing Exceptional Customer Experience
Customer experience is just as important as your online presence. It’s important that you know what customers go through at every phase so that you can adjust your process to hit the highest possible satisfaction marks. Request feedback, take surveys, and maintain open lines of communication at all times, even after they sign on the dotted line. Especially after they sign on the dotted line.
Maintaining a great customer experience and securing those online reviews will bring customers to you organically, majorly reducing the amount of work you have to put in.
8. Use a Sales Software Built for Service Contractors
SalesManager is a robust software solution that enables your team to create accurate proposals and manage your sales funnel to win and retain customers.
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Want to learn more? We encourage you tosign up for a free demo and see the full ServiceTrade platform in action. It’s never been easier to use HVAC service agreements to build your business in 2025 and beyond!
How to Improve Technician Efficiency and Reduce Chaos in Your Service Business
The skilled labor shortage remains one of the biggest challenges facing service contractors today. With the commercial HVAC market projected to grow to $15.7 billion by 2029, businesses will need to increase the technician workforce by 8% to meet demand. But hiring more workers isn’t the only solution.
Billy Marshall, founder of ServiceTrade, recently joined ACHR’s The NEWS podcast to share his perspective on the importance of improved technician efficiency, smarter workflows, and planned maintenance.
Here, we highlight some of Billy’s insights alongside findings from the 2025 Technician Insights Report to explore what’s holding techs back and how you can improve efficiency, retention, and profitability in your business.
The Biggest Technician Frustrations (and How to Fix Them)
The 2025 Service Technician Insights Report surveyed 650+ technicians across the industry and revealed one overwhelming truth: Technicians aren’t frustrated by the work itself—they’re frustrated by the chaos surrounding it.
The study found that technicians struggle most with:
Scheduling chaos (last-minute changes and emergency calls).
Customer miscommunications (unclear job details, missing information, and misunderstandings that lead to wasted time and inefficiencies).
Here are some ways to reduce frustration.
Fix #1: Prioritize Planned Work Over Emergency Calls
Focus on customers who invest in preventive maintenance rather than those who only call when something breaks.
When jobs are scheduled in advance, technicians experience less stress, fewer disruptions, and more productivity.
Billy Marshall: “If your customers are always in emergency mode, they’re bad for your business—you can’t optimize anything when you’re just reacting all thetime.”
Fix #2: Use AI and Automation to Eliminate Admin Work
AI-powered transcription and automation can reduce admin work so techs can focus on billable tasks.
The survey study revealed that techs enjoy solving problems and helping customers, but they don’t enjoy paperwork and other administrative tasks.
“Stop asking the technicians to type a bunch of stuff out—just have them talk.”
With AI tools like ServiceTrade’s Smart AI, you can automatically transcribe technician reports and generate customer-friendly documentation, eliminating wasted time.
How to Keep (and Attract) the Best Technicians
Retaining top talent is just as important as hiring new workers. Twenty-six percent of skilled workers in the industry are nearing retirement, and businesses need to focus on keeping their best technicians engaged.
As revealed in the Technician Insights Report, techs want more streamlined days, better work-life balance, and less administrative responsibility.
“The best source of new leads for ServiceTrade is actually when a tech leaves a ServiceTrade shop and goes to a non-ServiceTrade shop and says, ‘What are we doing? This is crazy what I’m being asked to do.’”
Fix #3: Use Technology to Attract Younger Technicians
Companies using modern field service software are more attractive to younger workers.
Younger techs have grown up with smartphones, apps, and automation. They expect efficient workflows, not outdated, manual processes.
“Technicians would rather work for a company that embraces technology than one that makes their job harder with outdated methods.”
Fix #4: Reassign and Automate Administrative Tasks
Technicians should be focused on servicing and repairing equipment, not getting bogged down by unnecessary administrative work.
Office staff should handle admin work like quoting, documentation, and customer communications, freeing up techs to do what they do best.
“The technicians need to be doing productive stuff for the customer, and anything that can be done by somebody else needs to be done by somebody else.”
Final Thoughts: Reduce Chaos, Improve Productivity, and Boost Profits
The future of service businesses depends on technician efficiency, not just hiring more people. Reducing chaos, eliminating wasted work, and embracing technology will lead to:
5 Simple Growth Strategies for MEP Contractors in 2025
MEP contractors are grappling with various challenges in 2025, including persistent skilled labor shortages and widespread economic difficulties, such as inflation, climbing interest rates, and supply chain disruptions.
In order to remain competitive and grow revenue this year, you’ll have to be strategic and proactive in your approach. In this article, we’ll explore five simple and achievable growth strategies you can implement in 2025 to stay ahead of the curve and take your business to the next level.
1. Shore Up Your Service Business (and Build Strong Relationships)
It’s not too late to direct more attention and resources to your services department. Here are some benefits of doing so this year:
Increased demand: In uncertain economic times, there’s typically an increase in demand for maintenance and repair services as more facility managers focus on the upkeep and efficiency of their existing systems.
Higher Margins: Service work often has higher margins than large scale projects, making it an attractive option for contractors looking to increase their profitability. Businesses that can streamline the administrative demands of service work with technology can benefit greatly from more service volume, especially in 2025. Utilizing tools like mechanical estimating software can automate the quoting process, further reducing administrative overhead and improving efficiency.
Opportunities for growth: By focusing on service work, MEP contractors can build strong relationships with existing clients and establish a reputation for quality and dependability, leading to new business opportunities and growth in the future.
2. Show Your Work
Providing your customers with a premium experience will continue to be essential for retention and growth this year. One way you can impress customers is by providing detailed and transparent records of the work you do—even (or perhaps especially) in the case of routine maintenance work.
When equipment is running without issue, facility owners and managers under economic pressure might make a case for cutting the budget. Why are we paying these folks so much money when our equipment is working fine?
You know—and we know—that the equipment is working fine because it’s being routinely serviced. But the value of maintenance work will likely remain a blind spot for your customers—until you bring it to light.
How do you do that? By showing your work. Providing media-rich records, before and after photos, and really telling the story of how your recurring work is saving your customers money in the long run.
Looking for a streamlined way to tell the full story of your good work? Check out ServiceTrade’s Service Link feature.
3. Prioritize Pull-Through Performance
What is pull-through work? It’s a metric that measures the number of repairs, upgrades, replacements, and installations that come from delivering existing maintenance agreements with your customer. Anything you’ve proactively suggested or planned with your customer outside of routine maintenance and construction work.
The related metric pull-through efficiency is the rate at which routine work results in a pull-through work order. Improving this rate, and your total volume of pull-through work, continues to be a compelling growth strategy.
According to our latest data study, the top half of mechanical contractors in total pull-through performance grew year-over-year revenue 122% faster than their bottom half performing counterparts.
How do you improve pull-through performance? The short answer is to get your whole team behind the strategy and focus on these five steps:
Locating and recording all equipment issues.
Promptly evaluating all repair opportunities and creating quotes.
Promptly sending quotes to the customers.
Managing open quotes and following up with customers.
Scheduling the repair work order and earning the revenue.
4. Be a Gold-Star Employer
There’s never been a better time to focus on your technicians. As the labor shortage continues, it’s important to offer competitive benefits and compensation, whether that be through higher wages or commission-based programs. It’s equally important to moderate workloads and make the job as easy and enjoyable for technicians as possible.
Focus on employee retention and attract new talent by listing openings for skilled technicians on your website. Be specific about the skills that you value and the unique capabilities of your company, including any special technology capabilities that you deploy in service to your customers.
5. Lean on Technology
The right service software, including comprehensive mechanical project management software, will help you accomplish the four strategies above with more ease and efficiency.
For several years now, smart technology solutions have differentiated MEP contractors from their competitors. And in 2024, as the industry continues to embrace technology, having robust and reliable service software will become increasingly essential to keeping up with the competition and growing revenue.
Want to learn how ServiceTrade can help you hit your growth goals this year? Chat with our team!
Navigating the Skilled Labor Shortage: Balancing Supply and Demand
For mechanical contractors, the busy season is a great opportunity to show customers that they can rely on you, but the increased workload creates a lot of stress for employees and customers, especially during a skilled labor shortage. Here we explore some innovative ways to balance the stress between supply and demand and optimize workflows for technician productivity during the busy season and beyond.
The Magnitude & Implications of the Skilled Labor Shortage:
There is currently a 40% shortage of skilled technicians in the workforce. Moreover, the industry experiences an 8% net loss of technicians each year. The growing gap between labor supply and service demand is only expected to worsen over time for mechanical contractors. To make matters worse, demand for mechanical service calls increases by an average of 30% during the summer months according to the usage data in ServiceTrade.
There’s a difficult balancing act that contractors face. On one hand, they can hire more technicians to meet the demand during the busy season, but this may result in excess labor and higher operating costs during the slower periods. On the other hand, hiring just enough technicians to handle the baseline demand may lead to unhappy customers and churn during peak seasons when response times are crucial. So, how can contractors find a balance?
1. Update how you prioritize service calls
Traditionally, mechanical contractors prioritize service calls based on urgency, revenue, and margin. However, introducing a new metric called “Gross Profit per Labor Hour” and creating a customer scorecard can revolutionize this approach.
Gross profit per labor hour:
Karim Nice, owner of BlueHat Mechanical, introduced us to this powerful metric. Gross Profit per Labor Hour enables contractors to identify customers who generate more profit with the same amount of labor, allowing them to prioritize work that maximizes their earnings. Without it, contractors may not realize that the top-grossing customer may have significantly lower gross profit for labor hour compared to a slightly smaller customer.
Creating a customer score:
To consolidate the metrics and prioritize customers effectively, contractors can create a customer score. Some key metrics to include: total revenue, margin, gross profit per labor hour, average work order total, and quote acceptance rate. By assigning points based on different ranges within each metric, a weighted score is obtained. This score enables contractors to sort their customer list and identify the customers who bring the most value to their business. Dispatchers can use this score to determine priority order, giving faster service to high-scoring customers.
By using metrics like gross profit for labor hour and creating a customer scorecard, contractors gain a deeper understanding of which customers drive the most value for their business, so they can prioritize their work accordingly.
2. Stop wasting technicians’ time
Another valuable tip is to stop wasting technicians’ time on unnecessary tasks. Reallocating administrative tasks to other team members protects technicians’ productivity, even beyond the busy season. So, some do’s and don’ts:
❌ Don’t require techs to hunt for work order details.
Set technicians up for success by equipping them with the tools they need to get the job done as efficiently as possible. This includes work order details, equipment details, service history, and any additional instructions or access codes. By doing so, you eliminate the need for them to spend valuable time contacting others for information.
❌ Don’t have techs create quotes and invoices.
Unless absolutely necessary, refrain from having technicians create quotes and invoices in the field. Leverage tools like mechanical estimating software to streamline the quoting process in the office, allowing your technicians to focus on their core expertise. While you may bill for those labor hours, it’s more efficient to delegate these administrative responsibilities to other team members, especially when there is a technician shortage. You can still bill for those hours, just don’t have your technicians doing it.
❌ Don’t have techs run to the parts house.
Similar as above, it’s vital to optimize the utilization of your highly skilled and expensive technicians to do the skills they’re trained to do, especially given the ongoing labor shortage. So instead, allocate these tasks like running to the parts house to junior or non-technical staff. You can still bill for those hours as you would normally.
✅ Do have techs document equipment issues.
Encourage technicians to capture every repair opportunity and have them do it in a way that makes it easy for the office to generate accurate quotes and determine if repairs can be deferred until the busy season subsides. Documenting repairs creates future revenue opportunities for your business.
A commercial service platform like ServiceTrade helps mechanical contractors set their technicians up for success.
3. Keep projects agile and on budget
K & R Mechanical, a ServiceTrade mechanical customer, excels at keeping projects on budget and on time. A tip their Vice President of Service, James Mugabero, recommends is to hold daily project review meetings where you review financial reports and check operational statuses.
Review real-time financial reports daily.
Review the financials of every project to see if you are projected to be over or under budget based on where each project is from the expected completion. Comparing projects side-by-side gives insight into if there are project(s) that you can reallocate resources from to a project that is over budget or behind schedule. Looking further into each project’s performance gives insight into what is affecting the budget.
Hold team stand-ups each day.
During the daily project review meeting, check the performance of projects from the previous day, so you can make decisions for today. You may discover the opportunity to relocate technician resources to service calls. The operational review ensures you never lose track of a project and maintain technician efficiency.
To keep projects on budget during busy seasons, implement a daily project review meeting where you analyze real-time financials and conduct operational review. Leveraging mechanical project management software can streamline this process, providing a centralized platform for tracking project progress, financials, and resource allocation in real time. These practices enable better resource allocation, risk assessment, and decision-making, ensuring projects stay on track and meet financial targets.
The 3 big takeaways to start implementing now:
Prioritize work from a complete view of a customer’s value.
Delegate tasks like quoting and invoicing to the office.
Review projects daily to plan resource deployment and protect your profit margin.
Best Mechanical & HVAC Trade Shows for Commercial Service Contractors
There are many HVAC and mechanical trade shows vying for your attention and attendance. And we know it would be great to attend them all as these events are so often valuable and invigorating—but we also know that’s not normally possible. Too many shows, too little time, and a limited budget! That’s why we’ve compiled this list of the top seven U.S. and Canadian conferences for HVAC and mechanical contractors. These are the heavy hitters that offer the most value in terms of networking, speakers, exhibitors, and fun.
Not all of these events are perfect for every business, but all of them offer valuable opportunities to learn about new trends in the HVAC and mechanical industry, network, and check out new products from suppliers, manufacturers and technology partners.
The AHR Expo is a leading event for HVACR professionals, especially contractors who are looking to innovate with new technology. It features a comprehensive gathering of industry manufacturers and suppliers of all sizes and specialties. Exhibitors unveil the latest additions to their product line-ups, demonstrate what is new and innovative about the technologies, provide product details, and answer questions.
The MCAA Convention is one of the largest and most robust mechanical events of the year. The conference offers many opportunities for contractors to learn, network, and engage with partners and vendors. The conference offers impressive keynote speakers, entertainment, and packages for family members, including children.
CMPX is Canada’s show for HVACR and plumbing contractors. The show, which features over 500 exhibitors is a valuable event for Canadian contractors who want to learn about innovative new products, stay current with the latest code and regulatory trends, and network with industry peers.
This leading conference, specifically for mechanical service contractors, features current issues and trends in service and service sales management, personnel, finance, marketing, training and recruiting. The conference consists of networking opportunities, educational sessions, peer-group sessions, and exhibitors. ServiceTrade will be among the exhibitors. We hope to see you there!
A four-day event for SMACNA members, chapter executives, and associate members. This conference features educational sessions, networking opportunities, and a product show with dozens of the industry’s most prominent suppliers, manufacturers, and service providers.
MCAC offers a robust program for Canadian contractors, focusing on networking and educational sessions. The conference is a leading event for Canadian commercial service contractors to reconnect, learn about future industry trends, and check out exhibitor solutions.
The events above offer the best in networking, engaging educational speakers, innovative exhibitors, and fun for your team. We hope you make room on your calendar for some (or all) of these events. And if so, we’ll see you there!
You can check all of the events ServiceTrade participates in here.
