Restoration Contractors Absorbing Rising Labor Costs, Report Finds

A new survey from Crawford & Company found that 58% of restoration contractors are absorbing higher labor costs rather than passing them on to insurers and policyholders. The report noted that 86% of contractors said the labor market was affecting their business, leading to longer job cycle times for 73% of respondents. Verisk data cited in the report showed that combined hourly billable labor costs rose 4.69% between July 2025 and July 2026, more than double the 2.05% rise in material costs over the same period.

The findings highlight significant cost and workforce pressures within the repair network. Lance Malcolm, president of Crawford Network Solutions, stated that the information helps carriers understand contractor economics and find ways to support a healthy repair network. Total residential reconstruction costs rose 3.8% across all states during the measured period.