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. Even with stable or moderate economic growth projections, the broader labor outlook suggests mounting challenges could be ahead. Many seasoned construction workers are nearing retirement, and the pipeline of younger entrants remains thin, with only a small share of job seekers expressing interest in the field. Recent industry assessments also point to widening gaps between available positions and the number of qualified workers in key trades. Data from the National Association of Home Builders shows that labor shortages remain widespread across construction trades, including HVAC and plumbing, where roughly half of employers report difficulty finding skilled applicants. Plumbers, pipefitters, and steamfitters; and heating, air conditioning, and refrigeration (HVAC/R) mechanics and installers form the backbone of the industry, delivering essential installation,
maintenance, and modernization services across residential and nonresidential buildings. As aging infrastructure and ongoing construction sustain demand, employment trends in these skilled trades remain a key indicator of the sector’s capacity to meet future needs. l FON
This article is adapted from a Jan. 12, 2026, news release issued by PHCC-National Association.