Billd has released its 2026 National Subcontractor Market Report, highlighting the financial challenges commercial subcontractors continue to face and the strategies many are using to improve profitability.
Based on responses from more than 600 subcontractors, suppliers and general contractors, the report found subcontractors wait an average of 51 days for payment after submitting a pay application. General contractors, however, estimated payments are issued in 35 days, underscoring a persistent payment gap.
The survey also found material and labor costs increased 12% and 11%, respectively, contributing to an average net profit margin of 13.3%. Despite those pressures, two-thirds of subcontractors said they maintained or improved profitability.
According to the report, the strongest-performing firms share several common practices, including negotiating supplier pricing, incorporating financing costs into project bids, using early payment programs when available and securing additional sources of working capital before they are needed.
Looking ahead, 84% of subcontractors said they plan to grow their businesses in 2026, while 66% expect to pursue larger projects.
