What 2024 Taught the Restoration Industry (And How to Make 2025 Stronger)

If 2024 taught restoration contractors anything, it’s that when the market tightens, you either adapt or get left behind.

We just broke this down in detail on the latest episode of Disaster Podcaster—what went wrong last year,

why so many businesses struggled,

and what the most successful companies did differently.

If you felt the squeeze in 2024, you’re not alone.

A lot of restorers saw leads dry up, insurance carriers tighten their grip, and jobs become harder to land.

Some fought back by cutting costs,

others tried shifting their business models,

and many just held on for dear life.

But not everyone suffered—some companies not only survived but thrived.

Why?

Because they understood the game was changing and moved quickly to adjust.

Most contractors fail in times like these because they rely too much on what worked before. They wait for things to “get back to normal” instead of recognizing that the industry is evolving. The companies that made it through 2024 stronger didn’t just react—they made strategic moves to set themselves up for long-term success.

Here’s what we covered in the latest episode, and what every restoration business owner should take away from last year:

• 2024 was rough—fewer weather events, economic uncertainty, and a shifting insurance landscape made work scarce.
• Market saturation made it worse—more contractors chasing fewer jobs meant increased competition.
• Insurance carriers pulled back—tightening claims, withdrawing from markets, and forcing restorers into tougher negotiations.
• Many businesses had to cut deep—layoffs, selling off equipment, downsizing just to stay afloat.
• But some businesses thrived—those who focused on direct-to-consumer sales, built stronger referral networks, and optimized their operations came out ahead.

If your restoration business took a hit last year, the worst thing you can do is sit back and hope 2025 is different. It’s time to take action.

How Restoration Business Owners Can Adapt in 2025

2024 put the restoration industry through the wringer. For many contractors, it was the toughest year in recent memory. The biggest factor? A combination of economic uncertainty, insurance chaos, and a lack of major weather events that typically drive business. Without those storms, many restorers found themselves scrambling for work, cutting costs, and even closing their doors.

But some companies navigated the storm better than others. They saw the changes happening in real time and made strategic moves to stay ahead. Here’s how you can do the same in 2025:

Diversify Your Revenue Streams

The businesses that thrived in 2024 weren’t waiting around for insurance jobs. They were actively building direct-to-consumer service lines—things like biohazard cleanup, or pivoting to commercial work where there is less emotional friction and fewer TPA hurdles.

When insurance slowed down, they had other revenue streams keeping them afloat. If you’re still relying on insurance claims to keep your business going, it’s time to start shifting. Interested in shifting towards commercial? Check out our new commercial coaching option.

Strengthen Your Referral Network

Some of the most successful restoration companies last year didn’t have the biggest marketing budgets—they had the strongest relationships. The power of a well-built referral network is massive, yet most contractors don’t put enough effort into it. Plumbers, property managers, real estate agents—these connections can be gold. If you aren’t building them strategically, you’re leaving money on the table. We have a course designed to help you become a master at referral marketing. Check out our FREE Dartboard Marketing Course.

Systematize Your Business for Efficiency

The companies that survived last year were the ones with strong processes in place. They weren’t wasting time chasing bad leads or reinventing the wheel with every job. They had dialed-in systems that made their operations lean and effective. Whether it’s through better SOPs, automation, or leadership structure, getting your business running smoothly will be a massive advantage in 2025.

Stop Relying on Insurance to Save You

A lot of contractors spent 2024 in a constant battle with insurance carriers. Some even considered becoming Public Adjusters to fight back. The problem? That fight takes time, money, and energy away from actually running your business. The reality is, insurance companies aren’t going to make your life easier. The smartest businesses are learning to operate independently of them, focusing on self-pay clients and alternative revenue streams instead.

Play the Long Game

Restoration is cyclical. Every few years, the market shifts, and businesses that aren’t prepared take the hardest hits. The best time to build resilience is before things get bad—but the second-best time is now. If you’re making decisions based on short-term survival, you’re going to struggle. Start thinking about how to position yourself for stability and growth, no matter what the market throws at you.

The Bottom Line?

2025 will be won by those who adapt. If you felt the squeeze in 2024, now is the time to make changes that will set you up for success. We just broke this down in full detail on Disaster Podcaster.

If you want to hear exactly what happened last year and how to get ahead this year, go check it out.

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