As we close out the first half of 2026, the trends we identified in our Definitive Guide to Field Service Trends are taking shape, with a few new pressures added to the mix. The good news is that demand keeps growing in key field service categories. Field Nation marketplace data shows 74% of work categories are expanding year over year.

But demand is only half the picture. The same market that is generating strong field service volume is also squeezing margins, straining labor supply, and slowing project approvals. Here’s a mid-year look at the forces shaping field service and what service leaders can do to stay ahead.

Tailwinds driving field service demand

The POTS sunset is creating a sustained wave of work

The POTS sunset, the industry-wide retirement of legacy copper landlines, is generating a sustained wave of onsite work. AT&T began permanently decommissioning copper infrastructure across approximately 500 locations, with plans to retire the large majority of its copper by 2029.

Field Nation data confirms the trend: VoIP-SIP installations have climbed 107% year over year, and now rank among the top five work types on the Field Nation platform. 

Security modernization is driving more work per site

Rising theft and security concerns are pushing organizations to consolidate separate alarm, camera, and access control systems onto an integrated platform. IP cameras now account for 64% of surveillance revenue, and these systems increasingly include AI-powered video analytics, cloud-based monitoring, and POS integration. 

The result is more complex installations, broader technical requirements, and a growing need for technicians who can support integrated systems, not just individual components.

AI investment is driving record data center demand

Data center demand is strong and accelerating, with AI-driven infrastructure investment pushing construction and support work to record levels. Amazon, Alphabet, Microsoft, and Meta alone are projected to spend a combined $650 billion on AI infrastructure in 2026. 

Data center work on the Field Nation marketplace grew 18.3% year over year, making it one of the fastest-growing work types. Projects of this scale and duration also come with practical constraints. Security clearances, facility badging, and OEM certifications make technician continuity an operational necessity.

Store and site expansion continues to drive installation volume

New location openings and technology overhauls are generating installation work across multiple sectors. More than 1,118 new retail store openings are planned for this year. McDonald’s is adding 900 U.S. locations by 2027, and QSR brands are investing heavily in kiosks, AI drive-thru technology, and networking upgrades. Banks are renovating branches into technology hubs, with ATM-related work on the Field Nation marketplace up 15% year over year. Healthcare clinics are scaling just as fast, with nearly 11,900 urgent care locations active nationwide. 

Every new or renovated site needs networking, cabling, displays, and connectivity, and ongoing maintenance once systems are live.

Headwinds creating persistent challenges

Rising costs and supply constraints are compressing margins

Hardware costs are up sharply in 2026, driven by a combination of tariffs and an AI-fueled memory shortage. Gartner estimates a 130% surge in combined memory prices by year end, with PC prices up 17%. 

When replacement costs jump, organizations hold onto equipment longer. Deferred replacement means more break/fix and preventative maintenance work, more unpredictable failures, and tighter response windows.

Fuel costs are adding to the pressure. U.S. regular gasoline hit $4.50 per gallon in mid-May, up $1.38 from a year ago, according to the Energy Information Administration. For field service leaders, the increase in gas prices lands directly on the bottom line. Every long-distance dispatch costs more than it did last year, and the math keeps getting harder to defend.

Workforce shortages are structural, not cyclical

Field service labor shortages persist even as the broader labor market cools. Electrician positions are projected to grow 9.5% through 2034, more than triple the average for all occupations, while experienced technicians are aging out faster than they are being replaced. Workforce shortages constrain operations for 68% of field service organizations.

The skills required are shifting faster than the workforce can retrain. VoIP, IP security, and AV expertise are in short supply at the same time demand for those categories is accelerating. Organizations are holding back on permanent hires while project work continues, which makes access to qualified on-demand technicians more valuable.

Capital restraint is slowing project approvals

Outside of AI infrastructure, organizations are cautious about large capital commitments. Business surveys show widespread hesitancy to spend, with borrowing costs and trade policy uncertainty extending project approval cycles. 

Customers are keeping essential infrastructure running while deferring upgrades that don’t have a clear near-term return. ROI scrutiny is higher, and project approval cycles are taking longer.

Extreme weather creates urgent, unplanned demand

Storms, wildfires, and grid disruptions are generating more unplanned field service work across more locations. According to the Energy Information Administration, the average duration of outages has nearly doubled due to extreme weather.

When infrastructure goes down across multiple sites at once, demand for onsite support arrives all at once too, across networking, backup power, security, POS, and telecom systems. Unlike planned project work, the demand arrives with no lead time, no staged rollout, and no flexibility on timing.

Fast dispatch and local coverage are what keep SLAs intact when conditions are unpredictable.

What this means for field service leaders

The organizations with the clearest advantage are built for flexibility. They are positioned to pursue growth where demand is accelerating and withstand the pressures that are squeezing margins.

Invest in VoIP/SIP and IP security certification
These are the two categories with the clearest demand signal and the widest skills gap. Building certified teams now means being ready when volume peaks.

Review hardware cost assumptions in active bids
Tariff-driven price increases are making estimates from a year ago inaccurate.

Audit fixed-price contracts for fuel escalator clauses
Contracts written before mid-2025 are likely losing margin with each dispatch as fuel costs have climbed sharply over the past year.

Build rapid-response protocols before severe weather events hit
Organizations with pre-vetted local technicians in affected markets respond faster and keep SLAs intact.

Keep capacity flexible as project timelines stretch
Budget scrutiny is extending approval cycles. Build workforce flexibility so you can move quickly when projects get approved.