Industry Results Point to Stronger Financial Outlooks but Uneven Readiness for Long-Term Scale
HINGHAM, Mass., Dec. 19, 2025 /PRNewswire-糖心Vlog/ -- Brentwood Growth today announced results from its聽, revealing a dramatic rise in financial confidence compared to last year. However, despite the sharp rebound in revenue and optimism, new data shows that many service businesses still lack the operational maturity and leadership depth required for sustainable long-term growth.
The annual survey鈥攚hich includes responses from HVAC, plumbing, electrical, landscaping, pool and spa, roofing, facility services, and specialty trades鈥攎easures financial health, operational systems, valuation readiness, and long-term outlook.
Financial Confidence Surges Year Over Year
, where owners in the trades were almost evenly split between being better off financially (33%), about the same (35.7%), and worse off (31.3%), the 2025 results show a significant shift in momentum:
- 52.2% say they are financially better off than a year ago (up from 33%)
- 26.9% report being about the same (down from 35.7%)
- Only 20.9% say they are worse off (down from 31.3%)
Expectations for the coming year show an even stronger rise in optimism. In 2024, 55.4% of owners expected to be better off in the next 12 months. In 2025, that number jumped to:
- 81.5% expect to be better off next year
- Only 4.6% expect conditions to worsen
"These are some of the strongest financial confidence results we have seen since launching the State of the Trades Industry Survey," said John Bartlett, Founder of Brentwood Growth. "Owners feel stable, motivated, and ready to grow, but the data also shows that many businesses still lack the systems needed to support that growth."
New Operational Data Highlights Structural Weaknesses
This year's survey introduced a new 12-item, 1鈥�5 rating scale measuring operational maturity, leadership capacity, financial discipline, and transition readiness. While business owners scored well in areas such as revenue stability, bookkeeping accuracy, healthy work-life balance, and overall enjoyment of running their business, several areas revealed underlying operational gaps that limit long-term scalability.
Lowest-Scoring Areas
The lowest-scoring areas in this year's operational assessment reveal that many home-service businesses are still missing the foundational components required to scale. These gaps include:
- 54% have no succession or exit plan
- 52% do not track lead conversions consistently
- 50% lack a reliable lead generation system
- 48% don't know their business value
- 1 in 3 can't step away from daily operations
- 42% have no second-in-command
Together, these weaknesses point to companies that may be performing well today financially, but remain vulnerable in terms of real, sustainable growth without stronger systems, leadership infrastructure, and long-term strategic planning.
"These deeper insights show the disconnect between how owners feel and how their businesses are actually built," Bartlett said. "The optimism is real, but so are the risks. Without strong systems, the owner becomes the bottleneck and growth (and valuation) stalls."
A Strong but Fragile Recovery
The survey results reveal a dual narrative emerging in 2025. On one hand, revenue is more consistent than in prior years, owners report a healthy work-life balance, and most still genuinely enjoy running their businesses.
Demand has stabilized, financial conditions have improved, and many owners feel more confident about the year ahead. Yet underneath these positive trends, several concerns remain.
Business operations are still heavily dependent on the owner, leadership pipelines are thin or nonexistent, and many companies lack clear KPIs or financial dashboards to guide decision-making. Exit preparation also remains rare, even as valuations rise across the trades. Together, these findings suggest that while the home-service sector has regained its footing, its long-term growth will depend on owners professionalizing their operations and building stronger internal systems.
"Owners deserve the freedom that comes from a self-managing company," Bartlett said. "When the business doesn't rely on you to function, you finally gain choices (exit, succession, or stepping back). But that freedom only comes when systems and leadership are in place. And buyers are always willing to pay more for a business that is self-managing."
About the Survey
The Brentwood Growth State of the Trades Industry Survey is sent annually to thousands of owners and leaders across the trades to gauge financial conditions, leadership maturity, operational strength, and long-term planning readiness. .
About Brentwood Growth
Brentwood Growth is an advisory and consulting firm that works with service providers and contractors in the residential, commercial, and industrial markets. Its clients are considering a sale in the near-term, wanting to scale their business for a potential future sale, or establish a self-managing company.
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Media Contact
Jamie Weed, Brentwood Growth, 1 9083777807, [email protected],
SOURCE Brentwood Growth
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