MSCA Benchmark Survey

Jun 19, 2023

MSCA conducted a 2022 comprehensive benchmark survey to obtain current data on key performance indicators (KPIs) in the HVACR and plumbing service industry.

The results were very insightful and sure to be beneficial to all MSCA members.

The full report is now available; results are presented in two formats, one is overall results and the second is broken down by company size which can provide specific insight relevant to your company.

Features of BEST in CLASS Contractors:  

  • Provide primarily air conditioning, heating, plumbing & controls services
  • Focused on growing their service agreement base
  • 75% have a separate P/L for service and construction
  • Have dedicated service agreement sales personnel
  • Bill service agreements in advance
  • “Auto Increase” service agreements at renewal (1-3% most common)
  • Service Agreement (PM) retention rate of 93% or greater
  • Bill quickly – Average is 4–8 days (upon completion of work)
  • 77% of contractors average $250,000 or more revenue per service vehicle
  • Allow service technicians to quote work in the field (average limit is approximately $6,000)
  • Hire salespeople from the field
  • Annual scheduled preventative maintenance hours per service technician between 300 and 800
  • Have an average ratio of 2 to 3 field techs to one office staff
  • Total non-billable technician time between 5-10% annually
  • Truck inventory tracked using a software system
  • Replace service vans based on mileage (150K – 200K most common)
  • 85% have deployed a mobile field solution

AH-HA Revelations from the 2022 MSCA Benchmark Survey: 

  • 15% of companies have not deployed a mobile solution
  • 40% of contractors do not have automatic renewal of PMs
  • 11% of companies auto-renewing at an increase of 1% – 2%  and 50% of companies are auto-renewing at 3% –  are they keeping up with costs?
  • 31% of companies missing out on a cash flow opportunity by not advance billing their service contracts
  • 19% of companies do not track truck inventory
  • 23% of contractors do not have a separate P/L for service – how do they know how they are performing?
  • Sole proprietorships decreased 7% from 2019
  • Since 2019, 13% increase in those companies offering plumbing service
  • Since 2019, 10% decrease in those performing refrigeration work and 2% decrease in residential work
  • 96% of contractors have less than 16% non-billable time
  • Contractors replacing vans less frequently than in 2019– 65% replace every five years or less, was 72% in 2019 – makes sense with supply chain shortages on vehicles
  • 10% decrease of service techs quoting in the field from 2019 – losing out on a possible retention tool
  • 10% increase of companies employing CRM from 2019
  • 68% of companies still tracking tools manually or not at all
  • 55% of contractors do not have a sales training program
  • 16% of companies take more than 15 days to bill once job complete
  • 68% of companies do not employ dedicated maintenance sales personnel
  • 48% of companies outsource fleet management and maintenance
  • 86% of companies are not using cameras (internal and external) on their vehicles
  • 84% of companies are not considering Electric Vehicles

Download the report to learn more.

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