The Plumbing Heating Cooling Contractors Association (PHCC) has released its 2026 outlook for the heating, cooling and plumbing industry. Here, we delve into the aspects projected to affect plumbers in 2026.
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Key takeaways from the outlook include:
- Labour markets will cool in 2026, but demand for talent remains
Employment growth is expected to continue slowing in 2026. However, labour demand among P-H-C businesses is expected to persist as a large share of the workforce nears retirement and the pipeline of younger workers remains thin. Labour shortages continue across the broader construction market, with roughly half of employers reporting difficulty finding skilled applicants. - Modest but uneven growth in construction demand expected
Construction activity in 2026 is projected to expand at a modest but uneven pace, with global strength concentrated in data centres, select infrastructure programmes, and renovation activity rather than broad-based new construction. Residential remodelling and upgrades to existing housing stock are expected to remain steady, with roughly 2% growth as homeowners prioritise energy-efficiency improvements and system replacements over new builds. Against a backdrop of still-elevated interest rates, labour constraints and materials volatility, contractors should expect targeted opportunities alongside continued margin pressure. - The buzz around AI will continue as businesses search for efficiencies
More home-service professionals are experimenting with AI and identifying ways to integrate it into daily operations. The most common use cases include generative AI for content and administrative tasks, AI-enabled marketing and review management tools, and platforms that improve scheduling, customer responsiveness, and operational visibility. - Declining interest rates will support the industry’s consolidation trend
Consolidation activity across HVAC and plumbing service contractors continued in 2025, driven largely by private equity and strategic buyers seeking firms with diversified mechanical capabilities. Looking ahead to 2026, consolidation is expected to persist as platforms pursue broader geographic coverage, with scaled contractors offering multiple service lines remaining the most attractive targets.
The outlook also highlighted one vital topic to observe for the plumbing industry in 2026:
First, the growth of AI
A 2025 survey administered by Housecall Pro of more than 400 home-service experts found that over 70 percent had experimented with AI, including roughly 40 percent of plumbing professionals. Among these consistent users, the most common applications include generative AI for content creation and administrative support, AI-driven tools for marketing and online review management, and platforms that streamline operations and provide real-time business insights. Respondents noted that AI is helping reduce routine workload, improve customer responsiveness, and enhance scheduling efficiency – all worthwhile benefits that are encouraging broader adoption across the sector. As AI tools become more integrated into field-service software and equipment platforms, experts expect usage rates to continue rising through 2026.
Read the full outlook here: Environmental Scan: 2026 Outlook for the P-H-C Industry – PHCC
Source: Sourced from PHCC
