Ask a contractor what keeps them up at night, and the answer is likely skilled labor. Across ServiceTitan's 2026 industry research, skilled labor costs and shortages rank among the top two business risks for residential and commercial contractors alike, ahead of material costs, competition, and even a possible recession.
Labor is a top priority for contractors in 2026
The 2026 Residential State of the Trades Report found that 60% of residential contractors name labor and overhead costs a top business risk, and 53% point specifically to the skilled labor shortage. The 2026 Commercial Specialty Contractor Industry Report shows the same pressure with 35% of commercial specialty contractors citing labor and overhead costs and 35% citing the skilled labor shortage. The consistency across the two trade segments highlights that this is an industry-wide challenge.
Behind these statistics is a technician on a rooftop, in a crawlspace, or inside an electrical panel, keeping homes comfortable and businesses running. On Labor Day and every day, we celebrate the tradespeople who keep our communities running.
As the labor market tightens, the contractors who invest in their people and the tools that make their team more productive will be best positioned to grow.
Discover more industry insights in the 2026 Residential State of the Trades Report and 2026 Commercial Specialty Contractor Industry Report.
Data from the 2026 Residential State of the Trades Report and the 2026 Commercial Specialty Contractor Industry Report.
