Market unpredictability has required resilience and adaptability from the restoration and remediation industry. Leaders and organizations are planning for significant growth in the next few years. Technology, leadership and regulatory changes are driving the field forward. 

Here are seven trends influencing professionals and shaping the future of restoration work. 

1. New Technologies

The new year means innovative technologies are helping remediation and restoration professionals. For instance, remote monitoring converts field documentation into verifiable data collection. IoT-enabled sensors capture environmental information, track equipment status and reduce data gaps.¹ Real-time job management and transparency are easier, thanks to these advancements. 

Automation is another key pillar in the industry. Experts say about 60% of all companies have implemented it, marking a significant shift in workflows.² Restoration and remediation leaders will increase their usage of automation platforms, such as Albi and JobSight to name a few. These technologies make project management and scheduling easier. 

2. Enhanced AI Adoption

AI usage has become a reality in most industries, whether in construction or health care. A 2025 survey found that 88% of businesses use AI in at least one of their regular functions.³ Restoration and remediation professionals use this technology to support their workflows and correct errors. Industry leaders also leverage it to engage customers with live chatbots. 

Estimates and scoping are among the most significant benefits of AI. Project managers and technicians can photograph losses on jobsites, and an AI-integrated platform can assess the extent of the damage. Once it reviews the area, it produces a preliminary scope and cost estimate. Businesses benefit from a sped-up claims process and reduced friction with insurers. 

3. The Shifting Workforce 

The aging workforce means recruiting young professionals has become essential. Modern companies are tailoring job descriptions and benefits to accommodate Gen Z. The new generation of employees is attending college less while prioritizing trades.⁴ They also appreciate tech-friendly environments, financial stability, and having purpose in their work.¹ 

Industry leaders are approaching retirement, meaning that the new wave of workers must assume this responsibility. Most restoration business owners come from the baby boomer generation¹, so they will either pass the enterprise to family or sell to outside buyers. Expect new approaches to leadership and operations in 2026 and beyond. 

4. Construction Slowdown

Experts estimated over half a million hires were needed in 2024 and 2025 to meet demand.⁵ Simultaneously, 1.9 million workers would leave the construction industry for other fields. The labor shortage affects restoration and remediation businesses by reducing the volume of projects they can undertake. Building owners may delay restoring their facilities due to economic uncertainty. 

If the construction industry continues to slow, clients may become more conscious of budgets. Therefore, they are more likely to pay for smaller-scope repairs instead of comprehensive restoration. However, a slowdown could benefit remediation businesses through lower material costs. A decrease in demand for lumber and drywall could help stabilize expenses and improve profit margins.  

5. Rising Costs

Rising costs are also affecting clients through their insurance companies. Homeowners are facing higher deductibles, leading to hesitation and delay for minor issues. Some are opting for this insurance strategy due to expensive premiums. A 2025 study found that 47% of Americans experienced a premium increase, which has led to tighter wallets.⁶ 

If costs are too high, homeowners may delay calling a professional. Instead, they will perform the work themselves or hope the problem resolves on its own. Others may wait until an emergency arises before hiring a remediation expert. Therefore, restoration professionals should prioritize customer education and explain the long-term risks of inaction. 

6. In-Demand Services

Business owners are experiencing an increase in demand for certain services due to environmental and market conditions. For example, climate-driven wildfires have led to increased demand for fire and smoke damage services. NASA reports that extreme wildfire activity has doubled.⁷ These events can occur outside specific seasons and regions, resulting in increased demand for mitigation. 

Heightened eco-awareness has led to environmental, social and governance (ESG) waste management. Restoration companies are offering sustainability consulting and solutions for debris removal and material recycling. As advisers, they can help clients prepare for disasters while aligning with ESG goals. It is essential for gaining a competitive advantage in the modern business climate. 

7. Regulatory Pressures

The labor shortage has affected restoration businesses by emphasizing more competitive policies. Modern companies have shifted their focus toward ESG compliance and documented ethics records. These pillars are essential before partnering with major vendors, such as Allianz and Liberty Mutual. These industry leaders check ESG credentials before starting projects. 

The industry landscape is expected to continue on this path in 2026 and beyond. Restoration and remediation professionals must be aware of compliance, starting with the onboarding of employees. A labor shortage means businesses must have robust safety programs and comprehensive insurance. These factors are crucial for the entire supply chain, especially remediation operations.

Summary

The restoration and remediation landscape is rapidly evolving due to the advancement of technologies and climate change. Modern companies are adopting IoT-enabled monitoring systems and automation platforms to enhance operational efficiency. Simultaneously, the workforce is transforming due to evolving needs. 

The wave of retirements is paving the way for newer, younger leaders to make their mark on a changing industry.

Resources

1. https://www.randrmagonline.com/articles/91765-2025-restoration-industry-year-in-review
2. https://www.richmondfed.org/research/national_economy/cfo_survey/data_and_results/2024/20240620_data_and_results
3. https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai
4. https://www.cnbc.com/2025/04/24/gen-z-workers-opt-out-of-college-and-go-into-trades.html
5. https://www.customtruck.com/blog/market-intel-2024/
6. https://www.jdpower.com/business/press-releases/2025-us-home-insurance-study
7. https://science.nasa.gov/earth/explore/wildfires-and-climate-change/