58% of Restoration Contractors Are Absorbing Higher Labor Costs, Contractor Connection Research Finds

ATLANTA--(BUSINESS WIRE)--Contractor Connection^®, Crawford & Company’s managed repair network of vetted and credentialed contractors, today released the first installment of its 2026 Managed Repair Market report, revealing that 58% of restoration contractors are absorbing higher labor costs to keep pricing consistent.

Rising material costs, economic uncertainty and labor shortages rank among contractors’ leading concerns. The labor market is affecting 86% of respondents’ businesses, while 73% report an operational impact, most often through longer job cycle times.

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Based on feedback from restoration contractors across the Contractor Connection network, the research provides carriers and other industry stakeholders with a direct view of the economic, workforce and operational forces shaping managed repair. Rising material costs, economic uncertainty and labor shortages rank among contractors’ leading concerns. The labor market is affecting 86% of respondents’ businesses, while 73% report an operational impact, most often through longer job cycle times.

“Contractors are managing significant cost and workforce pressures, yet many are choosing to protect strategic business relationships while continuing to provide the same level of exceptional service to policyholders,” said Lance Malcolm, president, Crawford Network Solutions. “By bringing these perspectives forward, we can help carriers better understand current contractor economics and identify practical ways to support a healthy, resilient repair ecosystem.”

The report also shows broad technology adoption across the contractor community. Ninety-eight percent of respondents use technology in their businesses, including estimating and scoping, communications and documentation, project management, and field applications such as moisture detection and damage assessment.

“Contractor Connection is an essential part of Crawford’s value proposition, combining deep managed repair expertise with a high-quality network to enhance the claims experience for carriers and policyholders. This report strengthens that value by giving us actionable insight into the contractor perspective, helping us anticipate market needs and deliver better outcomes for our clients,” said Mike Hoberman, CEO, U.S. Operations, Crawford & Company.

The 2026 Managed Repair Market report is a three-part research series. The next installment, examining how managed repair programs create value for contractors, carriers and policyholders, will be released on October 21. The third installment, focused on contractor-carrier collaboration, will follow on November 11. Sign up to receive updates via email and visit the report web page.

About Crawford^®

Based in Atlanta, Crawford & Company (NYSE: CRD‐A and CRD‐B) is a leading global provider of claims management and outsourcing solutions to insurance companies and self‐insured entities with an expansive network serving clients in more than 70 countries. The Company’s two classes of stock are substantially identical, except with respect to voting rights for the Class B Common Stock (CRD-B) and protections for the non-voting Class A Common Stock (CRD-A). More information is available at www.crawco.com.

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