Across HVAC, refrigeration, cleaning, and pest control, owners are facing a new wave of cost pressure. Different industries. Different regulations. Same outcome: tighter margins.
While tariffs, labor laws, and environmental regulations are outside your control, how your business responds to those pressures isn't. These four developments explain why operating costs continue to rise — and why operational efficiency matters more than ever.
Why HVAC contractors are still facing higher costs
Many HVAC contractors expected recent tariff adjustments to ease pricing pressure. Instead, equipment and repair costs continue moving in the opposite direction.
On June 1st, the Trump administration adjusted Section 232 tariffs, lowering the rate on derivative components used in residential HVAC systems from 25% to 15%, in effect through 2027 (ACHR News, June 22). But that tariff relief isn't showing up in lower prices for customers. In Texas, contractors report new HVAC systems now cost 10–12% more than a year ago, and some repairs run as much as 30% higher than 12–18 months ago, driven by copper, refrigerant changes, and labor (NBC DFW, June 26).
Even with lower tariff rates, material costs, refrigerant transitions, and labor continue putting pressure on pricing. Contractors may find quoting jobs and protecting margins more difficult than they did a year ago.
Why cleaning labor costs keep climbing
Labor has always been one of the largest expenses in cleaning. In 2026, that pressure continues accelerating.
Labor costs in cleaning keep rising 8–12% a year (JaniJobs 2026 Cleaning Labor Outlook), pushed by minimum wage increases across 22 states and 66 counties and cities as of January 1, 2026 (National Employment Law Project). The sector's median wage already sits 32% below the national median, and 80% of cleaning companies report they can't fully staff at current wages (CleanerHQ, updated July 16, 2026).
When hiring becomes more expensive and staffing remains difficult, productivity matters just as much as payroll. Every missed appointment, delayed quote, or unanswered call becomes more costly.
Why pest control margins are shrinking despite market growth
Demand continues growing across the pest control industry, but stronger revenue doesn't automatically translate into healthier margins.
The US pest control market is growing toward a $29.1 billion valuation in 2026, but the industry's 55–57% gross margin sweet spot is under pressure. Labor runs 25.8–50% of revenue, chemical costs are climbing from biological resistance (up to 25% higher) and new tariffs on active ingredients like S-Metolachlor and 2,4-D, and 89% of companies plan to raise wages to retain technicians (NPMA/PCO Bookkeepers 2025 Industry Cost Study, cited by Solea AI, June 16, 2026).
Growing revenue means little if labor, chemical costs, and technician retention continue outpacing pricing power. Margin protection increasingly depends on operational discipline rather than market demand alone.
What this means for your business
Tariffs, EPA regulations, and minimum wage increases all operate on timelines outside an owner's control. Operational performance doesn't.
Home service businesses miss an average of 27% of inbound calls, and only a fraction of qualified opportunities ultimately become booked work. At a time when every percentage point of margin matters, protecting existing demand often creates more value than chasing new demand.
That's why operational systems matter more during periods of rising costs. Businesses that answer every call, follow up consistently, and price work with accurate operational data are better positioned to absorb external pressure than businesses relying solely on growth.
Vivo helps home service businesses build nearshore operations teams across customer service, sales, dispatch, and back-office support. By strengthening the systems owners can control, businesses become more resilient when the next round of tariffs, regulations, or wage increases arrives.