Common Challenges Contractors Face and How to Overcome Them
Strong demand does not always make running a contracting business easier. Contractors still need to find dependable workers, manage rising costs, win profitable projects, and deliver an experience that keeps customers satisfied.
These challenges can be especially difficult for smaller businesses whose owners are already balancing sales, operations, customer service, and project management. Better systems and stronger partnerships can help contractors capture market demand without having to solve every problem alone.
Is the Hardscaping Industry Growing?
The hardscaping industry continues to create opportunities for contractors. According to the Concrete Masonry & Hardscapes Association’s 2026 Contractor Industry Report, respondents reported median year-over-year growth in gross hardscape sales of:
- 10% from 2023 to 2024
- 7% from 2024 to 2025
- 10% from 2025 to 2026
However, industry growth does not guarantee that every contractor has the resources needed to take advantage of it. In the same survey, 62% of respondents reported less than $1 million in 2025 gross hardscape sales.
Smaller businesses may lack dedicated resources for recruiting, purchasing, marketing, sales, and long-term growth. In many cases, the owner is responsible for several of these functions while also managing customers and projects.
What Are the Biggest Challenges Contractors Face?
The CMHA report asked hardscaping companies about the challenges affecting their businesses. The graph below focuses on the issues selected by more than 30% of respondents in 2025 and shows how those concerns have changed over time.
Recruiting and hiring quality employees remains the largest concern, although the percentage identifying it as a challenge has declined over the past five years. During the same period, concerns about increasing overhead and competition have grown.
These challenges affect your business in practical ways. If you cannot find enough reliable workers, you may have to turn down jobs. When your costs increase, you may make less money on each project. And when more contractors compete for the same work, you may feel pressure to lower your prices.
Why Is It So Hard to Find Good Workers?
Finding and keeping dependable employees can require significant time and attention. Smaller contractors may be competing with larger companies that have dedicated recruiting teams, formal training programs, and more resources.
A flexible labor model can give owners more options. Depending on local requirements and market conditions, a hardscaping business may use employees, subcontractors, or a combination of both. Qualified subcontractors may provide their own crews, vehicles, equipment, trade licenses, and insurance.
The Paver Company allows for this flexibility. Franchisees also gain access to TPC’s experience in marketing, sales, construction, operations, and growth strategy. Instead of recruiting senior internal talent for every business function, owners can draw on expertise already available through the franchise relationship.
Franchisees remain responsible for developing and managing their local workforce. The difference is that they have an experienced business team and established playbook behind them.
How Can Contractors Manage Rising Overhead?
Materials, labor, fuel, insurance, vehicles, and equipment are all getting more expensive. Smaller contractors may have less buying power and fewer opportunities to negotiate better pricing on their own.
The Paver Company has established vendor relationships with companies such as Belgard and The Home Depot. Franchisees can benefit from these existing relationships instead of having to build every vendor connection themselves.
TPC passes available negotiated pricing and discounts on to its franchisees. This gives local owners access to the purchasing power of the larger franchise system while helping them source reliable products and simplify purchasing.
These relationships will not eliminate every cost increase, but they can help franchisees manage overhead and protect more of the margin on each project.
How Can Small Contractors Compete Without Just Lowering Prices?
Customers can compare contractors online, request several estimates, and read reviews before speaking with an owner. Smaller businesses may struggle to match the brand recognition, marketing resources, and sales systems of larger companies.
Trying to win every project with the lowest bid can create another problem by putting even more pressure on margins. Contractors need a clear reason for customers to choose them beyond price alone.
The Paver Company’s SHARPEST position is built around professional sales, fair pricing, clear communication, quality installation, and customer satisfaction. The goal is not to offer the widest service menu or promise the fastest installation. It is to provide a professional experience that earns the customer’s confidence.
By joining TPC, owners can plug into an established brand instead of building their identity, messaging, marketing materials, website presence, and sales approach on their own. They gain a polished platform designed to help a local business look professional and stand out in a fragmented market.
TPC combines that brand with a focused menu of pavers, turf, concrete, block, and related outdoor-living projects. Its marketing resources, sales systems, and customer-experience playbook give franchisees a clearer way to compete without having to create their positioning from scratch.
A Smarter Model for Existing Contractors
The Paver Company began around a kitchen table and grew into a multimillion-dollar hardscaping company by working through many of the same labor, overhead, and competitive challenges contractors face today.
TPC now brings that experience to franchisees through a smarter franchise model. Owners receive access to an established brand, flexible labor options, supplier relationships, operating systems, and a team with experience across marketing, sales, construction, and growth strategy.
Joining a franchise does not remove the owner’s responsibility for running the local business. It provides tools, expertise, and support that can be difficult or expensive to build independently.
Learn how The Paver Company helps contractors overcome common business challenges.
Source: Concrete Masonry & Hardscapes Association, 2026 Contractor Industry Report—Executive Summary. Survey findings represent participating hardscape contractors and may not reflect every business or market.
Author: The Paver Company
Publication date: 8/14/2026
