Fresh off celebrating National HVAC Tech Day on June 22, now is a good time to reflect on what’s accelerating — and challenging — momentum in the trades. In last month’s Round-Up, we covered the rise of cashless payments in home services, new business courses for contractors, and a wave of nine product warnings tied to off-brand, foreign-made faucets.
This month brought a boost in demand for home services, but not without its hurdles. Incentives for clean energy are at risk, and cash flow remains a concern for many contractors. The good news? New solutions are taking shape: think Redfin placements designed to drive leads and fresh partnerships focused on building the future of the trades. Let’s get into it.
Last year, more than 2.3 million homeowners used the Energy Efficient Home Improvement Tax Credit (better known as 25C tax credit) to afford energy-saving upgrades, claiming over $2 billion in credits. This year, that program is on the chopping block. The Trump administration’s One Big Beautiful Bill Act (OBBBA), which passed the U.S. House last month, proposes to “modify, phase out, and terminate multiple energy-related federal tax credits.”
In simpler terms, that could mean major cuts to the Inflation Reduction Act, including incentives like 25C, 25D, and 45L:
The fate of the Section 179D tax deduction, which rewards energy efficiency upgrades in commercial buildings, remains unclear. One thing that’s for sure? Business owners should keep a close eye on these federal incentives. Without these credits, contractors could lose a powerful selling point — and homeowners may delay or ditch upgrade projects entirely.
Though incentives for green building may be in limbo, construction demand is holding steady, even as early signs of softening begin to show. The Associated Builders and Contractors (ABC) Construction Backlog Indicator dipped to 8.4 months in May, based on a survey conducted from May 20 to June 3. That figure is still up 0.1 months year-over-year, but a falling backlog signals less secured work in the pipeline.
Regionally, the South held the longest backlog, but was the only area to report a decline in May. Year-over-year, only the Northeast saw growth in backlog, while the other three regions posted annual drops. Meanwhile, ABC’s Construction Confidence Index showed mixed results — confidence in profit margins rose, but expectations for sales and staffing both dipped slightly.
“The impacts of tariffs are increasingly apparent, with nearly one in four ABC member contractors reporting tariff-related project cancellations or delays in May,” said ABC Chief Economist Anirban Basu. “Despite this potential headwind, approximately six out of 10 contractors expect their sales to increase over the next two quarters, suggesting widespread optimism about the outlook.”
Speaking of tariff impacts, contractors in June weren’t just dealing with project delays; many were also grappling with financial strain. According to a new Cash Flow Compass report from Relay, 88% of small businesses face regular cash flow disruptions. And while 94% expect to grow this year, a third admit they’re unprepared for an economic downturn.
Inflation and trade-related actions were cited as the top economic pressures. These challenges are especially tough in blue-collar fields like HVAC, plumbing, and construction, where rising costs are making it harder to plan ahead. One in four business owners lack a clear successor if they had to step away, a sign that long-term planning is struggling under short-term financial stress.
According to the Relay report:
Many contractors are stuck between wanting to scale and needing to stay lean. Hiring the right help is tough when every dollar counts, and even tougher when there’s no clear roadmap for what comes next. Without stable cash flow and hiring confidence, even growth-ready HVAC and plumbing contractors could find themselves stalled — or worse, unprepared for what’s next.
With financial uncertainty weighing on contractors, labor shortages remain a pressing issue. The Department of Labor reports nearly 250,000 open skilled trade positions, a gap worsened by an aging workforce, fewer vocational programs, and declining interest among younger generations. That’s why HomeServe’s newly announced partnerships with three leading trade organizations offer a welcome step toward strengthening the pipeline.
Part of its Skilled Trades Initiative, these partnerships reflect HomeServe’s dedication to workforce development, diversity, and long-term sustainability in the HVAC, plumbing, and electrical industries:
1. Women in HVACR: As an “Inspiration” sponsor, HomeServe will fund scholarships and leadership mentorships for women entering the trades.
2. Plumbing Heating-Cooling Contractors Association (PHCC): Funds five scholarships and supports PHCC’s advocacy and workforce development programs.
3. Air Conditioning Contractors of America (ACCA): Sponsors technical training, industry resources, and educational initiatives to elevate HVAC standards.
"The shortage of skilled tradespeople is impacting homeowners across the country, and HomeServe is committed to being part of the solution," said HomeServe CEO Tom Rusin. “By partnering with organizations like Women in HVACR, PHCC, and ACCA, we’re not only investing in the future of these industries and supporting the development of a skilled workforce but also ensuring that individuals from all backgrounds have access to rewarding careers.”
While organizations like HomeServe are investing in workforce development, others are stepping up to help contractors grow their customer base. A new partnership between Redfin — a technology-powered real estate company — and Thumbtack does just that, giving technicians easier access to nearby leads. With over 30,000+ project requests (example: Clearwater} on the home services platform daily, it’s a timely boost during peak home improvement season.
For contractors, it’s a low-risk opportunity: no membership fees, no annual costs, and no charge to join. That’s a major benefit when the average cost to acquire a new residential HVAC customer today hovers around $350. Once homeowners claim their property on Redfin, they can browse services and get matched with qualified pros through Thumbtack’s AI-powered dashboard, making it easier for contractors to be seen, vetted, and hired.
Even as some homeowners hit pause on bigger upgrades, many are still looking for help with essential projects, such as routine HVAC tune-ups and plumbing emergencies. Platforms like Thumbtack make it easier to connect with local homeowners right when they’re ready to book. No cold calls, no door knocking, just qualified leads in your service area.
In a market full of shifting costs, stalled projects, and skilled worker shortages, offering peace of mind can set your trade business apart. Extended Parts and Labor Plans from JB Warranties make that possible. A JB Warranties-backed program provides added value for customers and keeps contractors tied to the job for 1 to 12 years. It’s a smart way to build long-term trust, reduce risk, and grow your business on solid ground.
Contact us with any questions related to our warranty program or to schedule a meeting with a JB Warranties Representative.