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    Report Finds AI Boosting HVACR Service Profitability

    April 22, 2025
    Simpro's 2025 Trades Outlook Report shows data centralization, workflow optimization are driving efficiency and profitability.

    PRESS RELEASE

    BROOMFIELD, CO, April 21 — Trade business owners are facing unprecedented challenges and opportunities, according to Simpro's 2025 Trades Outlook Report. For plumbing, electrical, HVAC, and other field service business owners, the landscape has shifted dramatically but so have the tools for success.

    The report, gathering insights from over 600 diverse trade & field service businesses worldwide, reveals that companies thriving amid today's economic pressures are those investing in operational efficiency while building more resilient organizations.

    "As someone who's worked with thousands of trade business owners, I can tell you this is a pivotal moment," says Gary Specter, CEO of Simpro. "The most successful businesses are facing these challenges head-on: rising customer expectations, evolving workforce dynamics, and the need to embrace technology as a competitive advantage. Those building resilient operations will see substantial growth in the coming years."

    Four Key Findings

    1. Focus on Operational Fundamentals

    Your peers aren't looking for complicated technology solutions. The report shows successful business owners prioritize systems that perfect the fundamentals: job management, accurate quoting, efficient scheduling, and streamlined invoicing. Nearly 80% of owners surveyed consider robust invoicing capabilities essential, recognizing that cash flow remains king.

    2. 'Software Sprawl' is Killing Efficiency

    The average trade business now manages at least five software systems, with more extensive operations juggling eight or more. Yet nearly a third have no strategy for integrating the information generated by these resources. This fragmentation creates blind spots that prevent owners from making informed decisions about profitability, resource allocation, and growth opportunities.

    3. AI Delivers Real ROI

    For practical business owners, AI isn't about futuristic concepts but tangible returns today. The report found that 69% of owners see AI's most significant impact in optimizing workflows—reducing technician downtime, improving routing efficiency, and increasing job completion rates. Over 30% report that predictive maintenance capabilities help prevent costly equipment failures and emergency service calls.

    4. Winning the Talent War Requires New Strategies

    While blue-collar job growth continues to outpace white-collar positions, business owners still struggle to attract qualified workers. The perception problem is stark: only 23% of young people believe trades involve cutting-edge technology, while 89% of actual trades professionals report working with advanced tech daily. This disconnect has created a situation where just 16% of young people would even consider a career in the trades.

    Strategic Priorities for Business Owners

    For business owners looking to build more resilient operations, the report suggests three key focus areas:

    1. Optimize Your Revenue Engine: The most successful owners invest in systems that streamline quoting, scheduling, invoicing, and payment processing—reducing overhead costs while accelerating cash flow.

    2. Build a Data-Driven Business: Leading companies are consolidating information across their operations. Consider either hiring dedicated data expertise or partnering with software providers who can help transform your business data into actionable intelligence.

    3. Modernize Your Recruiting and Retention: Forward-thinking owners are refreshing their company culture to appeal to younger workers by emphasizing the technological aspects of modern trades work and creating clear advancement pathways.

    "I've owned my security business for over fifteen years, and the pace of change has never been faster," says Jennifer Lambert of Team Wired. "The businesses that will thrive aren't necessarily the ones with the most trucks or the longest history—they're the ones willing to modernize their operations while maintaining their commitment to quality service."

    Survey Methodology

    Simpro worked with Quietly Research to conduct the survey for this report. It involved a comprehensive data analysis collected from more than 600 diverse trade and field service businesses worldwide. The methodology included quantitative and qualitative research techniques, ensuring a robust and accurate representation of industry trends and insights. 

    For more information, visit: www.simprogroup.com.