Top 5 Strategic Moves Plumbing & Heating Contractors Should Make in 2026

By Derrick Rebello, CPA, Bradford Carlson & Marty Kirsner, CPA, MSA
Gray, Gray & Gray, LLP

The plumbing and heating industry faces a pivotal year ahead. Rising material costs, persistent labor shortages, and rapidly evolving customer expectations are reshaping how successful contractors operate. Based on current market trends and our work with trade contractors across the country, here are five strategic moves that can position your business for sustainable growth in 2026.

1. Implement Dynamic Pricing Models

The days of static pricing based solely on labor hours plus markup are fading. Successful contractors are adopting more sophisticated pricing strategies that account for market conditions, job complexity, and customer value. Start by analyzing your true cost per job, including overhead, insurance, vehicle expenses, and administrative time. Many contractors discover they’ve been underpricing services by 15-20% when they factor in all costs.

Consider implementing tiered pricing options that give customers choices while protecting your margins. A “good-better-best” approach for service agreements or equipment installations allows customers to select their comfort level while ensuring profitability across all tiers. Additionally, adjust pricing based on demand. Emergency services, weekend calls, and peak season work should command premium rates that reflect the true cost of availability and the value you deliver.

2. Build a Workforce Pipeline Now

Waiting until you need technicians to start recruiting is a recipe for missed opportunities and frustrated customers. Create a systematic approach to workforce development that includes multiple channels. Partner with local trade schools and community colleges to identify talent early. Offer paid apprenticeships that combine on-the-job training with structured learning paths.

Don’t overlook your existing team as a source of growth. Implement clear career advancement tracks that show apprentices and journeyperson how they can progress to master technician or foreman roles. Competitive compensation matters, but many technicians also value predictable schedules, continuing education opportunities, and modern tools and vehicles. Exit interviews with departing employees can reveal whether your retention issues stem from pay, culture, or working conditions.

3. Adopt Field Service Management Software

If you’re still relying on paper invoices, phone calls for scheduling, and spreadsheets for inventory management, you’re leaving significant money on the table. Modern field service management platforms integrate scheduling, dispatching, invoicing, customer communications, and inventory tracking into a single system.

The return on investment typically appears within months. Technicians complete more jobs per day when routing is optimized. Customer satisfaction improves with automated appointment reminders and real-time technician tracking. Your office staff spends less time on administrative tasks and more time on business development. Moreover, the data these systems generate provides insights into technician productivity, profitable service lines, and customer retention patterns that are impossible to capture manually.

Choose a platform designed for trades contractors rather than generic business software. Look for features like mobile access for technicians, integration with accounting software, and customer portals for service history and scheduling.

4. Diversify Revenue with Service Agreements

One-time service calls are unpredictable and expensive to generate. Service agreements create recurring revenue, improve cash flow predictability, and increase customer lifetime value. A well-designed maintenance agreement program can transform your business model from reactive to proactive.

Structure agreements to provide genuine value. Include annual inspections, priority scheduling, discounts on repairs, and seasonal tune-ups. Price agreements to cover your costs while delivering savings that customers can clearly see. A customer paying $300 annually for an agreement that includes two tune-ups, each valued at $200, recognizes immediate value.

Service agreements also generate additional revenue opportunities. During maintenance visits, technicians can identify potential issues before they become emergencies and recommend efficiency upgrades. Customers with service agreements are also significantly more likely to choose you for major replacements or renovations.

5. Invest in Energy Efficiency Expertise

As building codes tighten and utility costs rise, property owners are increasingly focused on energy efficiency. Contractors who can confidently discuss heat pump installations, smart thermostats, zone control systems, and high-efficiency equipment have a competitive advantage.

Pursue manufacturer certifications in emerging technologies. Many utility companies offer rebates and incentives for energy-efficient installations, and being able to navigate these programs adds value for customers. Market your expertise with case studies that demonstrate energy savings and return-on-investment calculations.

The contractors who thrive in 2026 will be those who treat their businesses as strategic enterprises rather than just technical operations. These five moves require investment of time and resources, but they create durable competitive advantages that position your business for long-term success.