Understanding the basics of profit margins

Before exploring the specifics of profit margins in the IT services industry, it is essential to have a clear understanding of what profit margins represent. By calculating the percentage of revenue that remains as profit after subtracting all expenses, profit margins measure the profitability of a business. In other words, they show how efficiently a company converts revenue into profits.

When analyzing profit margins, it’s important to note that there are different types of profit margins commonly used. These include the gross profit margin, operating profit margin, and net profit margin. Each margin provides a different perspective on the profitability of a business.

Definition of profit margins

In the simplest terms, profit margins are the ratio of net profit to net revenue, expressed as a percentage. Let’s break down the different types of profit margins:

• Gross profit margin: This margin measures a company’s profitability after deducting the cost of goods sold (COGS) from revenue. It indicates how well a company manages its production costs and pricing strategies.
• Operating profit margin: This margin takes into account all operating expenses, including COGS, salaries, rent, and utilities. It provides insights into the efficiency of a company’s operations.
• Net profit margin: This margin represents a business’s final profitability after deducting all expenses, including taxes and interest. It reflects the company’s overall financial health and profitability.

Profit margins are crucial for businesses

Profit margins are vital for several reasons. First, they help assess the financial viability of a business and determine its ability to generate sustainable profits. By monitoring profit margins, companies can identify potential areas for improvement, optimize operations, and make informed business decisions.

Secondly, profit margins provide insights into the competitiveness of a business within its industry. Comparing profit margins with those of competitors allows companies to benchmark their performance and identify areas where they may be falling behind or excelling.

Finally, investors and stakeholders closely scrutinize profit margins. These margins indicate the return on investment and overall financial health of a company. Investors use profit margins as a key metric when evaluating the potential profitability and risk associated with investing in a particular business.

Understanding profit margins is crucial for businesses in any industry. By analyzing and optimizing profit margins, companies can enhance their financial sustainability, competitiveness, and attractiveness to investors.

Profit margins in the IT services industry

The IT services industry is known for its dynamic and rapidly evolving nature. In this sector, a variety of factors significantly influence profit margins.

When examining the factors that influence profit margins in the IT services industry, it becomes evident that competition plays a crucial role. Intense competition and price pressures can erode profit margins, making it essential for companies to differentiate themselves and establish a unique value proposition. By offering specialized services or innovative solutions, companies can maintain healthy margins in a fiercely competitive landscape.

Another factor that impacts an IT services profit margin is technology expenses. IT services companies often incur high expenses related to research, development, and infrastructure. These investments can have a short-term impact on profit margins as companies strive to stay at the forefront of technological advancements. However, these expenses are necessary to help companies provide cutting-edge solutions to their clients.

In addition to technology expenses, staffing costs also significantly influence an IT services profit margin. Skilled IT professionals command competitive salaries, and labor costs can put pressure on profit margins. Efficient workforce utilization and productivity management are critical to optimize costs and maintain healthy profit margins.

Market demand is yet another factor that directly affects profit margins in the IT services industry. Fluctuations in market demand can impact both the pricing and volume of IT services. During periods of high demand, companies may have the opportunity to charge premium prices, leading to improved profit margins. Conversely, during periods of low demand, companies may need to adjust their pricing strategies to remain competitive, potentially impacting profit margins.

Lastly, the structure of IT services contracts can also influence profit margins and cash flow. Different pricing models and revenue recognition methods can have varying effects on profit margins. For example, fixed-price contracts may provide more predictable profit margins, while time and materials contracts may offer more flexibility but also carry higher risks.

While profit margins can vary depending on the specific company and its niche within the IT services industry, it is useful to consider the average profit margins in this sector. According to industry data, IT services companies typically aim for a net profit margin ranging from 10% to 20%. While this range gives a general indication of industry expectations, the profitability of individual companies may vary.

Calculating your IT services profit margin

Calculating profit margins involves considering both revenue and cost factors specific to the IT services sector. Understanding the intricacies of profit margins is crucial for IT service providers to promote sustainable growth and profitability.

Profit margins are a key metric that indicate the efficiency and profitability of a business. For IT services companies, analyzing profit margins can provide valuable insights into the financial health of the organization and help in making informed business decisions.

Revenue and cost factors

When calculating profit margins, revenue factors include income from IT services, software sales, licensing fees, and any other revenue streams. Diversifying revenue streams can help IT service providers mitigate risks and enhance overall profitability. On the other hand, cost factors to consider include labor costs, infrastructure expenses, marketing and sales costs, and any other costs directly related to IT service provision. Managing costs effectively is essential for optimizing profit margins and maintaining competitiveness in the market.

Formula for profit margin calculation

To calculate profit margins, IT services companies can use the following formula:

            Net Profit Margin = (Net Profit / Net Revenue) x 100

Calculating profit margins accurately is essential for IT service providers to assess their financial performance and identify areas for improvement. By analyzing profit margins over time, companies can track their financial progress, set realistic goals, and make strategic decisions to drive growth and profitability. Additionally, benchmarking profit margins against industry standards can help IT service providers evaluate their competitive position and implement strategies to enhance their market standing.

Strategies to improve your IT services profit margin

In an increasingly competitive landscape, IT services companies need to proactively seek strategies to improve profit margins. By focusing on cost management and implementing pricing strategies, businesses can optimize profitability.

One key aspect of cost management is optimizing workforce utilization and reducing employee turnover. Companies can reduce unnecessary expenses and increase productivity by allocating resources efficiently and retaining skilled employees. Avoid cost overruns and delays. By setting clear project timelines and milestones, businesses can streamline operations and deliver projects within budget.

Cost management techniques

Effective cost management is crucial for sustaining healthy profit margins. Some cost-management techniques include:

• Optimizing workforce utilization and reducing employee turnover.
• Implementing efficient project management methodologies to minimize cost overruns.
• Streamlining internal processes and leveraging automation and technology solutions.
• Negotiating favorable terms with suppliers and partners.

Pricing strategies for higher margins

Pricing strategies can also play a significant role in improving profit margins. The following are some effective pricing strategies for IT services companies:

• Value-based pricing: setting prices based on the value delivered to the customer.
• Bundling: offering service packages that add value and increase margins.
• Upselling and cross-selling: Leveraging existing relationships to increase revenue per customer.
• Differentiation: highlighting unique features or capabilities to justify premium pricing.

Value-based pricing is a strategic approach that aligns the cost of services with the benefits received by the customer. By demonstrating the tangible value of their offerings, IT services companies can justify higher prices and improve profit margins. Additionally, bundling services together can create a more comprehensive solution for customers while increasing the overall profitability of each sale. Upselling and cross-selling are effective techniques to maximize revenue from existing clients by offering complementary services or upgrades. Lastly, differentiation through unique features or specialized expertise can position a company as a premium service provider, allowing them to command higher prices in the market.

Future trends in IT service profit margins

Technological advancements and changing market dynamics continuously drive the evolution of the IT services industry. Several factors are expected to shape future profit margins.

The impact of technological advancements

Emerging technologies like artificial intelligence, machine learning, and cloud computing are expected to positively impact profit margins. These technologies enable IT services companies to offer innovative solutions, streamline operations, and scale services more efficiently.

Artificial intelligence (AI) is revolutionizing the IT services landscape by automating repetitive tasks, enhancing decision-making processes, and improving overall efficiency. Machine learning algorithms enable predictive analytics, personalized customer experiences, and proactive issue resolution, all of which contribute to increased profit margins for IT service providers. Additionally, cloud computing technologies are driving cost savings, scalability, and flexibility, allowing companies to optimize their resources and deliver services more effectively.

Market predictions and profit margins

Market predictions indicate a continued demand for IT services globally. As businesses increasingly rely on technology to drive growth, IT services companies can expect an upward trajectory in profit margins. However, staying ahead of the competition and adapting to changing market dynamics will remain critical for success.

The rise of digital transformation initiatives across industries is fueling the demand for IT services, creating new opportunities for revenue growth and margin expansion. As organizations prioritize digitalization to enhance operational efficiency, customer engagement, and competitive advantage, IT service providers play a pivotal role in enabling and supporting these initiatives. By aligning their service offerings with emerging trends such as the Internet of Things (IoT), cybersecurity, and data analytics, IT companies can capitalize on market opportunities and drive profitability.

Conclusion

Profit margins are a key factor in assessing the financial health and success of IT services companies. Understanding the basics of profit margins and, the factors influencing them, and employing effective strategies to improve them will enable businesses to thrive in the competitive IT services industry. By staying proactive and continuously adapting to market trends, companies can position themselves for sustained profitability and growth.

Ready to boost your IT services profit margin? Schedule a call with our experts today to maximize your IT service profitability and drive sustainable growth in this dynamic industry.

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Public Star Ratings Are Now Closed

Buyers can no longer leave new public star ratings or comments, though past ratings and comments remain visible on the providers profile.

Going forward, the best way to capture your experience is with Private Feedback, which factors into the Buyer Satisfaction section of a provider’s Provider Success Score. 

To learn more about Private Feedback, click here.

Provider Success Score Visibility in Custom Selection Rules

The Provider Success Score (PSS) is now available in Custom Selection Rules for both Auto Dispatch and manual vetting. Star ratings have been replaced with the PSS in all Custom Selection Rules that previously used them.  

If you were previously using a Custom Selection Rule that utilized a Star Rating we have made the update to PSS for you. Rules that reference Star Ratings have been automatically updated to:

• 5.0 or higher becomes Very Good or higher
• 4.9 or higher becomes Good or higher
• 4.8 or higher becomes Fair or higher
• Any other star ratings becomes Fair or higher

To learn more about this change, click here. 

Provider Success Score Feature Updates 

Buyers can now use the Quality Filter in the new Provider Match to exclude providers without a Provider Success Score and can see the Provider Success Score when viewing a providers profile.

To exclude providers without a Provider Success Score, use the toggle within the Quality Filter on the new Provider Match page. 

As a reminder, a provider who does not have a Provider Success Score has either not completed enough work or not completed work for enough buyers to generate a score. This does not mean the provider is unreliable or doesn’t do great work. Marketplace-wide, providers without a Provider Success Score have better quality outcomes than those who have a poor score.

To learn more about the Provider Success Score, click here.

Webhooks Update: Reported and Resolved Problems

We have added two new highly requested Webhook events that will give buyers enhanced insight into all reported, re-opened, and resolved problems on their work orders. 

NOTE: These events were not automatically added, even if a webhook was set to “All events”. Buyers will need to manually subscribe to these two new events.

The new event names are: 

• Work Order problem reported 
• Work Order problem resolved 

To learn how to add these events, click here.

Support Chat in Web 

We are excited to announce the launch of our upgraded Support Chat to the Field Nation web experience! Using enhanced adaptability, this new chat experience will make it faster and easier to get help on Field Nation. We are also thrilled to announce that chat is now accessible from any page in the platform by clicking the ? > Chat with Support. So you can get answers in real time, without leaving your workflow!

Chat is best utilized for technical or “how to” related questions. If you are having an issue with the other party on a work order (re: payment dispute), reporting a problem is still the best option. Here are some example questions/scenarios that our Field Nation Virtual Support Agent is great at answering: 

• For a provider: 
  • “Where can I see the Payment Terms of a work order?” 
  • “How do I upgrade to Provider Pro?”
  • “Where can I go to change my Payment Method?”

• For a buyer: 
  • “Why am I getting a ‘500 Error’ when trying to publish this work order?” 
  • “How can I filter out providers with no Provider Success Score?”
  • “How can I update my Company’s address?”

Check it out today and quickly get answers to your Field Nation questions!

To learn more about engaging with the Field Nation Support team, click here. 

Help and Support Migration

We have re-organized! The resources that used to live under Help & Support in your profile are now available from any page in the platform by clicking the ? icon.

The Help & Support section of the profile has been removed. 

Please note that this reorganization only impacts the web. These resources remain in the same location in the Field Nation App. 

The post October 2025 Releases appeared first on Field Nation.

Why this topic matters

One of the biggest challenges in digital signage has always been proving impact. It’s not enough to install displays and hope for the best. Today’s retail leaders demand measurable returns. In fact, research shows that 58% of shoppers actively notice in-store digital displays, and nearly half report that those displays influence their purchase decisions. Other industry reports show that retailers deploying digital signage can see average sales uplifts of ~29–32%. These figures underscore that digital signage is more than visual flair — it’s a performance channel.

But even smart displays with sensors (tracking dwell time, passive engagement, foot traffic) only deliver half the story. To make those metrics actionable and tie them to real business outcomes, you need to connect them to staff decisions, such as deploying the right person at the right time in the right place.

Field Nation’s perspective

At Field Nation, we connect companies to a nationwide network of skilled independent technicians who can support every stage of a digital signage rollout. Whether it’s:

• Installation: Getting new smart displays and sensor systems live, at scale, across hundreds of locations.
• Maintenance & upgrades: Ensuring hardware and software stay optimized, so retailers get the data and ROI they expect.
• Flexibility: Scaling staff to meet fluctuating demand without adding permanent headcount.

Smart technology is only as effective as the service model that supports it. By linking digital signage strategy with an agile, on-demand workforce, businesses can maximize uptime, validate ROI, and deliver better customer experiences.

Let’s connect at DSE

If you’ll be in San Diego for DSE, I’d love to connect and talk more about how Field Nation can help bring these innovations to life. You can find me and Steve throughout the show! We’re eager to learn from peers, share our perspective, and explore how smarter service can drive smarter signage outcomes.

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Introducing Predictive Quality

In the Fall of 2025, Field Nation launched the Provider Success Score (PSS). It’s the first predictive quality signal designed specifically for field service. Unlike traditional ratings, the PSS is powered by real delivery outcomes that matter most:

• Timeliness. Did the provider start on time?
• Backouts. How reliably do they complete the work they accept?
• Buyer Satisfaction. Do buyers consistently report positive results?

The PSS also emphasizes recency, so recent performance weighs more heavily than older history. The result is a single, trusted score that makes it easier to identify providers who are most likely to deliver great outcomes.

What This Means for Companies Assigning Field Tech Work

Early results show the impact of predictive quality:

• Providers with an excellent score are 8.6x more likely to deliver a successful outcome compared to providers with a poor score.
• High-score providers drive 80% fewer escalations, helping companies reduce risk and rework.
• With more visibility, companies can safely expand their networks beyond “the devil you know,” building confidence in every assignment.

The PSS doesn’t replace your judgment but gives you a powerful, data-driven signal to make smarter, faster decisions.

What This Means for the Industry

The PSS represents more than a new product feature. It reflects Field Nation’s commitment to raising the quality bar across the industry.

• For companies, it means more predictable outcomes, fewer surprises, and stronger SLAs.
• For providers, it creates opportunities for those who consistently deliver to stand out and earn more work.
• For the marketplace, it creates a rising tide incentivizing reliability and transparency that benefits everyone.

Ready to See It in Action?

Static ratings had their moment. But in today’s field service environment, buyers need predictive signals to stay ahead. The Provider Success Score puts you in control of quality, helping you reduce risk, improve outcomes, and scale with confidence.

The post Introducing the Provider Success Score appeared first on Field Nation.

Provider Success Score

Buyers can now see the Provider Success Score (PSS) directly in Match. The Provider Success Score reflects three key components of excellent service delivery: timeliness, backouts, and buyer satisfaction. 

• Timeliness Score: Based on the last 30 work orders. Late check-ins impact the score more heavily than early check-ins.

• Backout Score:  Based on the last 30 assignments. Early Backout have ½ the penalty of late, no call no show have 3x the penalty of late.

• Buyer Satisfaction: Based on the last 100 work orders with feedback, recent feedback matters more. Includes blocks, Private Feedback, quality issue backout (buyer removes provider due to issue), and user-reported events.

Providers with a Success Score of 85 or higher (Good, Very Good, or Excellent tiers) are more likely to consistently deliver quality service. As the tier increases, the likelihood of a quality issue drops.

A provider’s Provider Success Score will be visible underneath their profile pic with additional information available on hover.

With this release, buyers can also filter by Provider Success Score, Timeliness Score, Backout Score, and Block Rate using the Quality filter within Provider Match. 

 Lastly, the Provider Success Score has been factored into the default ranking rule within Provider Match. 

 As a buyer, the following resources are available to you:

• Provider Success Score Buyer FAQs
• The New Provider Match Experience Overview
• Finding The Right Provider For Your Work
• Default Ranking Rule

In addition, you can use the ‘PSS Feedback’ button within Provider Match to share any questions, concerns, or feedback you have.

As a provider, the following resources are available to you: 

• Provider Success Score 
• Provider Success Score FAQs
• How To Improve Or Maintain Your Provider Success Metrics

In addition, you can create a case using the Problem Type ‘Provider Success Score Inquiry’ to share any questions, concerns, or feedback you may have.

The post See What’s New: September 2025 Releases appeared first on Field Nation.

But his journey into independent field service work was not straightforward. It was shaped by curiosity, resilience, and, ultimately, freedom of choice.

Finding his way to the Field Nation marketplace

Mike first discovered field service marketplaces in 2007, while supplementing his full-time job. He connected with a gig-based model for technical work, which eventually led him to Field Nation.

After exploring the marketplace and completing several jobs, Mike determined that Field Nation was where he felt the best fit. “After all the cards fell, Field Nation was the best bet,” Mike recalled. “The marketplace is oriented toward technicians, and Field Nation seems to cover everything very well.”

By 2014, after 30 years in telecom, Mike stepped back into semi-retirement. In 2015, he dove back into field service, this time through Field Nation.

Building a career on flexibility

A typical day for Mike involves one to three jobs around the Seattle area. With over 2,800 projects completed, he focuses on what he knows best: telecom and networking. The freedom to choose the work types he prefers is key. “When looking through work orders, every decision starts with: do I know the buyer, and can I do the work well?”

The art of communication

Beyond technical know-how, Mike emphasizes communication as a cornerstone of field service success. Whether coordinating with buyers, troubleshooting alongside onsite staff, or making sure end users understand the updates before he leaves, Mike knows the job doesn’t end when the fix is complete.

“You never want to leave a site with anybody angry. That’s never an option,” he said. “You always want to communicate what you’re doing to the people on site and the people on the phone that are helping you configure stuff. Everyone has to be on the same page when you leave.” With a Provider Success Score of 92, he has earned a stellar reputation on the marketplace.

Establishing work-life balance through Field Nation

For Mike, Field Nation has provided not just consistent work, but the kind of lifestyle he envisioned after semi-retirement.

“I work between 15 and 25 hours a week on the Field Nation marketplace. I worked 30 years from 1984 to 2014, and since then it’s been a gig economy life—and it’s been great. Field Nation fits just right for me,” Mike added. He enjoys the flexibility to stay engaged with his craft, earn a comfortable income, and keep working on his own terms.

Looking ahead

Mike has seen technology shift dramatically from the analog days of copper lines to today’s fiber-powered world. Still, one thing remains constant: his commitment to doing the job right, communicating well, and leaving every site better than he found it. “Every project I do is an adventure. That’s why I like it so much. It really is fun,” he concluded.

For Mike, Field Nation isn’t just a marketplace. It’s a bridge between decades of expertise and the freedom to keep doing what he loves, on his own terms.

The post Stories from the field: Mike Mott appeared first on Field Nation.

Here are seven reasons why AI won’t replace the human element of field service anytime soon.

1. Field service is grounded in the physical world

AI excels at predicting failures, but it can’t install a new POS system, pull cable through a drop ceiling, or troubleshoot a router in the back of a store. Demand for these skills is only rising: the U.S. Bureau of Labor Statistics projects about 606,200 job openings each year in installation, maintenance, and repair through 2033.

2. Skilled trades are in short supply, not surplus

If AI were replacing technicians, we’d see too many workers chasing too few jobs. Instead, the opposite is true. Half of all field service technicians are now over 50, creating a looming labor gap as retirements accelerate. The real challenge is attracting and retaining people, not competing with robots.

3. Human problem-solving beats scripted logic

Field service projects rarely go exactly as planned. Maybe the part doesn’t fit, the wiring diagram is outdated, or the site has unique restrictions. Technicians are valued not just for what they know, but for how they adapt in the moment. AI can follow a script. Humans can improvise when the script falls apart.

4. Customers still want people in high-stakes moments

When critical systems fail, clients don’t just need a fix—they need reassurance. According to research by PWC, 59% of U.S. consumers feel brands have lost the human element of customer experience. A chatbot won’t calm a retailer whose digital signage is frozen on Black Friday, but a skilled technician will.

5. AI is a tool, not a technician

AI can optimize routes, predict failures, and provide remote diagnostics. The work still requires a person on-siteon site. Companies using AI in field service have seen 10–15% productivity gains and about 10% improvements in effectiveness, according to the Boston Consulting Group.

These results are real, but only because humans act on the insights. Without skilled technicians, the benefits disappear.

6. Predictive maintenance still ends with a person on site

Analytics can predict when a router is about to fail or when a POS system needs servicing. That insight becomes valuable only when it’s paired with skilled maintenance work.

A technician still has to replace the part, run the test, and confirm the fix.

7. Field service is becoming more complex, not less

Field service work continues to involve more connected devices and higher expectations, driven in part by demand for AI infrastructure. IoT sensors, cybersecurity requirements, and multi-vendor ecosystems make service more complicated, not simpler. 

TSIA’s 2025 outlook points to predictive maintenance, AR support, and intelligent scheduling as growth areas. Each of these innovations still depends on human judgment to install, troubleshoot, and explain on-site.

Looking ahead

AI is reshaping field service, but not replacing it. MSPs still need access to skilled talent, and technicians remain central to every outcome in the field.

Where is field service demand growing, and which areas should you focus on next? Find the answers in the Mid-Year Field Service Trends report.

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For many robotics companies, the question isn’t whether these tasks need to be done but who should do them. The answer increasingly points toward a strategic blend of internal expertise and external support.

Outsourcing simple, repetitive tasks

Highly skilled engineers are an invaluable resource. Their deep technical expertise is best applied to complex, proprietary issues, strategic initiatives, and innovation projects—the kind of work that drives business growth and competitive advantage.

Yet, all too often, these same experts find themselves performing “2-minute fixes” that, while important, don’t require their specialized knowledge. Outsourcing simple maintenance tasks to qualified, independent technicians frees internal teams to focus on what they do best, without sacrificing operational uptime or service quality.

Overcoming the training hurdle

One of the most common hesitations around outsourcing is training. How can an external workforce, unfamiliar with your specific equipment, deliver to your standards?

The truth is, most robotics companies often already have the tools they need: internal documentation, detailed manuals, and step-by-step training videos. By embedding this content directly into work orders on a labor marketplace like Field Nation, companies can guide external technicians through processes with precision and consistency.

Building a trusted talent pool

Marketplaces like Field Nation go a step further by allowing you to create “talent pools” or favorite lists of independent technicians who have been vetted, trained, and proven on your equipment. Over time, this builds a reliable network of go-to professionals across geographies to help ensure the right person is always available for the project, even in distributed or hard-to-reach environments.

Strategic impact of outsourcing robotics tasks

The benefits of leveraging on-demand labor are clear:

• Faster response times for routine fixes: With Field Nation, robotics companies can expect technicians to respond same-day or next-day after creating a work order.
• Higher productivity for in-house engineers: By leaving the simple, repetitive tasks and remote locations to contractors, in-house staff have more time to focus on other responsibilities.
• Consistent quality across multiple locations: Standardized processes and vetted contractors ensure every site meets the same high standards.

In an industry where uptime is critical and skilled labor is in high demand, reallocating tasks strategically is not just operationally efficient—it’s a competitive advantage.

By outsourcing the simple, repetitive work, robotics companies can ensure their most valuable talent is focused exactly where it should be: on solving complex problems, innovating for the future, and driving strategic growth.

Start tackling robotics projects across the map with Field Nation

Are you in need of skilled independent technicians for your upcoming robotics project? Check out our robotics solutions or book a time to meet with me to talk through how you can use the Field Nation marketplace for your robotics needs.

The post Optimizing labor: outsourcing simple robotics tasks for strategic focus appeared first on Field Nation.

Working in and around commercial buildings comes with the responsibility to perform tasks safely and avoid property damage. One commonly overlooked risk is the building’s fire sprinkler system. Damage to sprinkler heads or pipes – especially during cabling or ceiling work – can lead to extensive water damage and costly disruptions.

Below are key risks and best practices to help providers prevent and mitigate sprinkler-related incidents.

Risks of Sprinkler System Damage

• Water Damage: Fire sprinkler heads in commercial buildings discharge water at rates of 20–40 gallons per minute (GPM), with some systems exceeding 100 GPM, per NFPA standards. A single accidental impact – such as stepping on a supply line or striking a head during cabling – can cause significant flooding, damaging both the structure and its contents.
• Financial Costs: Water damage repair goes beyond fixing the sprinkler system. It may involve replacing drywall, flooring, electrical systems, furniture, inventory, and electronics – resulting in substantial costs.
• Project Delays: Accidental activation can halt progress. Cleanup and repairs may delay timelines, impacting broader project schedules and deliverables.

Measures for Providers to Prevent or Mitigate Sprinkler Damage

Identify: Before starting work, locate sprinkler heads and lines. Be aware that some may be concealed under insulation or above ceilings.

Protect: Use temporary barriers or coverings around sprinkler heads and lines when working nearby to prevent accidental contact.

Lighting: Utilize hands-free lighting (e.g., headlamps or task lights) to improve visibility in ceiling spaces and identify utilities.

Inform Your Team: Ensure all team members are aware of sprinkler system locations within the work area.

Response Plan for Sprinkler Damage

If a sprinkler head or line is damaged, water will continue to flow until the system is shut off. Be prepared:

Locate Shut-Off Valves: Identify the main and zone-specific shut-off valves before work begins. These valves are often secured in locked rooms or chained to prevent accidental shutdown. Coordinate with the building owner or Buyer to establish a shut-off plan in case of emergency.

Carry a Shut-Off Tool: Keep a fire sprinkler shut-off tool (e.g., Shutgun or Quickstop) in your tool kit. These tools can temporarily seal activated sprinkler heads and minimize water damage.

Document the Incident: Immediately take photos and videos of any damage for reporting and insurance purposes.

Report Promptly: Notify the building owner and/or Buyer so repairs can be made and the sprinkler system reactivated safely.

Summary

To prevent property damage from sprinkler systems:

• Plan ahead
• Use protective measures
• Establish a clear mitigation strategy

Effective communication with building stakeholders and preparedness are key to minimizing risk and ensuring safe, efficient work environments.

This information is provided by Intact Insurance Specialty Solutions, the marketing brand for the insurance company subsidiaries of Intact Insurance Group USA Holdings Inc., including Atlantic Specialty Insurance Company, Homeland Insurance Company of New York, Homeland Insurance Company of Delaware, OBI America Insurance Company, The Guarantee Company of North America USA, or OBI National Insurance Company. This document is provided for general informational purposes only and does not constitute and is not intended to take the place of legal or risk management advice. Readers should consult their own legal counsel or other representatives for any such advice. This document does not purport to identify all possible or significant hazards at a premises or in your operations.  In addition, it does not undertake to bring you into full compliance with any local, state or federal health or safety laws or contractual obligations. Further, by providing this document, we do not assume any obligations you may have to identify, manage, control or correct any hazard on your premises or in your operations.

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Here are two standout themes from the event that we think will shape the industry in the months and years ahead.

1. The Growing Fusion of AV and IT

If there was one phrase that kept surfacing in conversations and panels, it was AV-over-IP. More than ever, AV systems, from conference rooms to stadium jumbotrons, depend on robust, secure network infrastructure. It’s not enough to simply install a display; the hardware now lives in an ecosystem of VLAN configurations, cloud integrations, and bandwidth management.

This fusion creates both challenges and opportunities:

• Skill set evolution: AV techs now need to be part installer, part IT specialist. They should be comfortable with networking, security, multi-platform systems, and remote management, all while collaborating across IT, facilities, and design teams to deliver fully integrated solutions.
• Cross-department collaboration: Projects now require facilities teams, IT departments, electrical contractors, and AV specialists to work in sync from day one.
• Hardware longevity & flexibility: With standards changing quickly, OEMs and integrators are pushing for future-proof deployments, whether through modular hardware or software-driven feature updates.

For service providers, this means a rising need for technicians who can bridge both worlds. It also underscores the value of marketplaces that can quickly connect the right skill sets to the right projects.

2. LED displays: beyond the rectangle

LED technology dominated InfoComm, but the story isn’t just about brighter screens, it’s about design freedom. Modern day LED solutions can be any shape or size and integrate into environments as diverse as retail spaces, sports arenas, and living buildings designed to meet the highest sustainability standards.

Here are a few additional takeaways we noticed about LED displays: 

• Customization is essential: OEMs showed off jaw-dropping projects, from 192 uniquely-shaped panels for the WWE HQ logo to curved and flexible displays that blur the line between architecture and media. For service providers, this means opportunities to specialize in complex, one-off installations where precision engineering, creative problem-solving, and long-term maintenance expertise become key differentiators.
• Service and warranty will drive the market: With hundreds of LED manufacturers worldwide, buyers will gravitate toward brands that can ensure long-term support. For service providers, it means demand will increasingly favor those who can partner with reputable OEMs, deliver manufacturer-certified installs, and offer reliable post-installation support.
• Network-powered displays: Power over Ethernet (PoE) for smaller displays is here, with larger-scale PoE solutions on the horizon. This development will further tighten the AV-IT relationship.

With all of these developments in LED displays, service companies have a massive opportunity to become experts in the commissioning, calibration, and maintenance of these complex systems. As these displays get more sophisticated, the skill required to keep them running will only grow.

Bridge the gap between AV advancements and opportunity with Field Nation

InfoComm confirmed what many leaders in the field service industry already know: AV is no longer a siloed specialty; it’s part of a broader (and growing) technology ecosystem. From hybrid workplace strategies to data-driven content delivery, the future belongs to those who can adapt, integrate, and deliver.

The Field Nation marketplace helps bridge the gap between AV developments and effective solutions by connecting field service companies with skilled, independent AV technicians. Learn how Field Nation makes it easy to find the right expertise, right when and where you need it, so projects get done on time, on budget, and to the highest standard. And if you’re a service company specializing in AV, we’d love to hear from you and help you connect to more work.

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