LOS ANGELES, April 07, 2026 (GLOBE NEWSWIRE) -- ServiceTitan (Nasdaq: TTAN), the software platform that powers the trades, today released its 2026 Residential State of the Trades Report, a survey of 1,000 residential contractors. The report finds that 74% of contractors view AI as an efficiency engine, signaling a major shift toward technology-driven operations. However, only about 25% of contractors are currently using AI, highlighting a gap between interest and adoption. Early adopters are already seeing measurable results, including 48% reporting increased productivity and 45% reporting time savings.
"The winning contractors this year won't be the ones with the longest list of potential customers,” said Amer Mkhalalati, SVP and GM of Residential at ServiceTitan. “They’ll be the ones who ensure every technician, every hour on the clock, and every conversation with a client actually moves the needle and boosts the bottom line."
AI Momentum Builds as Early Results Emerge
AI adoption is gaining traction as contractors look for ways to reduce manual work and improve performance. While only a portion of the market has fully adopted AI, 73% believe starting early creates a competitive advantage, and many are prioritizing solutions embedded directly into their core platforms.
“Our customers have never been immune to industry pressures, but the difference is how they respond,” said Angie Snow, Principal Industry Advisor at ServiceTitan. “Contractors are increasingly adopting automation and AI to run smarter, more efficient operations. Those who focus on execution and efficiency will be best positioned to grow profitably.”
At the same time, contractors are taking a measured approach. More than half report uncertainty around where to start, and others cite trust, cost, and system limitations as barriers to adoption. Despite these challenges, early adopters are already seeing tangible benefits, reinforcing AI’s role as a practical tool for improving day-to-day operations.
"AI isn’t just improving how we work. It has unlocked speed and precision at scale for us,” said Luke Peluso, Technology Manager at Quality Service Company. “With agentic command center tools like Atlas, we’ve been able to automate scheduling and remove bottlenecks that directly impact our productivity and decision-making. Now nearly 30% of our bookings flow end-to-end without any human involvement from call to schedule dispatch. This technology has fundamentally changed how we operate daily and will continue to reshape the industry by setting a new standard for execution.”
Growth Remains a Priority, but the Strategy Is Changing
While 66% of contractors still cite revenue growth as their top priority, the path to achieving that growth is evolving.
Customer retention (53%) now significantly outweighs new customer acquisition (31%), signaling a shift toward maximizing the value of existing customers rather than chasing volume. This reflects a broader industry transition: growth is no longer driven by adding more jobs, but by improving execution across every part of the business.
Cost Pressures Shift Focus to Efficiency
Contractors are facing increased pressure on margins as labor, overhead, and material costs continue to rise. 60% cite labor and overhead as the biggest risks to their business, while labor shortages remain a persistent challenge.
In response, contractors are focusing on improving operational efficiency rather than relying solely on pricing or hiring to protect margins.
Winning Comes Down to Speed, Trust, and Convenience
In a competitive market, execution after the lead comes in is becoming the primary differentiator. More than half of contractors respond to new leads within the first hour, while delays in response time can result in lost business. At the same time, customers increasingly expect transparency, speed, and convenience throughout the buying experience.
This shift highlights the importance of tools and processes that enable contractors to respond faster, communicate clearly, and convert more opportunities into revenue.
Execution Becomes the Industry’s Competitive Advantage
With most contractors operating within similar margin ranges, differentiation is no longer driven by demand alone. Instead, success is increasingly defined by how effectively contractors manage their operations.
Those who can improve technician productivity, streamline workflows, and gain real-time visibility into performance are better positioned to grow profitably in a constrained environment. As AI adoption continues to expand, competitive advantage will increasingly depend on how well contractors integrate technology into their day-to-day operations.
To view the full findings and key takeaways, download ServiceTitan’s 2026 Residential State of the Trades Report here.
About the research
The survey was conducted on behalf of ServiceTitan by Thrive Analytics, an independent third-party research provider and a leading digital marketing research firm, polling 1,000 residential owners, executives, general managers, and directors. This research is for informational purposes only and ServiceTitan provides no assurances (express or implied) with respect to the accuracy of the survey data. Forward-looking economic and industry outlooks represent the views of the survey respondents, and may not represent the view of ServiceTitan or its affiliates. Forward-looking statements are subject to risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied.
About ServiceTitan
ServiceTitan is AI for the trades — a purpose-built agentic operating system designed to automate the workflows that run a contracting business, from enterprise commercial construction to residential field service, exteriors and beyond. The company’s end-to-end solution gives contractors the tools they need to run and grow their business, while providing a stellar customer experience. Learn how ServiceTitan is equipping tradespeople with the AI technology they need to keep the world running at: www.servicetitan.com
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