The Most Important KPIs for Water Restoration Contractors in 2025
In the restoration industry, there’s no shortage of chaos—weather events, insurance delays, crew turnover, and equipment costs that never seem to go down. But amidst all that unpredictability, one thing can keep you grounded: your KPIs (Key Performance Indicators).
Tracking the right water restoration KPIs helps you cut through the noise and focus on what actually drives profitability and growth. As we move through 2025, these are the performance metrics that matter most for restoration contractors.
1. Labor as a Percentage of Revenue
Why it matters: Labor is one of your largest controllable costs. This KPI shows how efficiently your team is producing revenue.
Target: 20%–30%
Watch out for: Too high could signal overstaffing, inefficiency, or underpricing. Too low might mean you're stretched too thin to scale.
2. Cost of Goods Sold (COGS) %
Why it matters: Tracks the costs tied directly to completing jobs—materials, subs, and job-specific rentals.
Target: 30%–40%
Tip: A sudden spike may point to estimating issues or poor job costing controls.
3. Overhead %
Why it matters: This covers fixed expenses like rent, admin wages, insurance, and software. Keeping it lean ensures profitability even when job volume fluctuates.
Target: Under 25% of revenue
Pro Tip: Separate field vs. admin wages for more clarity.
4. Net Profit Margin
Why it matters: This is what you actually keep. It reflects how well you’re managing every part of the business—from pricing and production to overhead control.
Target: 15%–20%+
Common issue: Business owners often underestimate this number when they don’t pay themselves formally.
5. Average Job Size
Why it matters: Larger job sizes typically result in higher efficiency per mobilization. This is a great indicator of marketing quality, referral strength, and sales strategy.
Target: Varies widely—track your own trends month over month.
6. AR Days vs. AP Days
Why it matters: If you’re paying vendors faster than you’re collecting from customers, you’re covering the cash gap personally. This KPI highlights that risk.
Goal: AR Days < AP Days
Watch out: Extended AR Days often point to insurance delays or billing errors.
7. Utilization Rate (for Field Labor)
Why it matters: Tells you how much of your paid labor time is spent on billable job work.
Target: 70%–80% or higher
Bonus: This ties directly into labor burden and pricing accuracy.
Why These KPIs Matter in 2025
The restoration landscape is shifting—more competition, tighter margins, and increased pressure from insurance carriers. The contractors that thrive will be the ones who:
Know their numbers
Monitor trends in real time
Make pricing and staffing decisions with data, not guesswork
Want to Know Where You Stand?
We compile real-world benchmark data from restoration contractors across the U.S. and return monthly KPI reports showing how your business compares.
✔ It’s fast
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🔗 Join the Benchmarking Project
Track the right KPIs. Compare to the right benchmarks. Grow the right way.
2025 is here—make your data work for you.