Pennsylvania Contractor Verification Disruptions Continue to Reduce Google Local Services Ad Leads for PA Businesses

Arch Web Design reports average online leads down from 100/mo to 22/mo per business since August 2025 and ongoing monthly manual work to keep GLSA ads running.

HARRISBURG, PA, UNITED STATES — Arch Web Design, a Harrisburg web design and digital marketing firm for home service companies, is sounding the alarm based on what it sees every day: contractors who count on Google Local Services Ads are getting fewer online leads and are spending more time fighting verification issues instead of running their business.

What’s happening (plain-English version)

Many Pennsylvania contractors depend on Google Local Services Ads to generate calls and leads from people searching Google for the services they provide. To keep those ads running, Google checks key business details, often including license or registration status, against official government sources.

Since August 2025, the Pennsylvania Office of Attorney General (PA OAG) has reported ongoing issues with the Home Improvement Contractor registration system affected by a cyber incident. The PA OAG has stated the portion of the database used to process registrations is still not operational, which prevents contractors from using normal workflows to register, renew, or update information online and limits paper processing beyond acknowledgement letters.
When the state system can’t reliably support normal validation workflows, contractors can face delays or verification interruptions that may reduce ad visibility—meaning fewer leads, fewer calls, and fewer booked jobs.

How this affects small businesses

For a contractor, this can look like:

• Ads suddenly not showing when they should
• A last-minute scramble near renewal/expiration dates
• Fewer calls during peak season—when missing leads hurts the most
• Extra time spent gathering proof and working through verification steps

For the tech-minded: what’s breaking in the chain

This is a dependency issue:

State system (registration processing not operational) → Verification can’t be confirmed in a normal/automated way → Platform verification workflows slow down or fail → Ads may be limited or paused → Lead volume drops

This is not presented as a fault of any one party. It’s a downstream effect when a key validation source is impaired.

Data Snapshot (Aggregated — Aug 2025 to Present)

Based on Arch Web Design’s internal research, Pennsylvania home services advertisers using Google Local Services Ads:

• Estimated impacted contractor advertisers (PA): Thousands (industry-wide impact estimate)
• Average LSA leads per contractor account (pre-incident baseline): 100/month
• Average LSA leads per contractor account (post-incident observed average): 22/month
• Ongoing administrative burden: 20+ hours/month spent on time-sensitive verification/extension actions and escalations
• License re-verification/extension cycles handled since Aug 2025: ~240 (internal estimate)
• Typical job value used for conservative modeling: $3,500

What the lead drop can mean in dollars (simple example)

The observed change is 78 fewer leads per month (100 → 22). If a contractor closes a conservative 5–10% of leads, that’s roughly 4–8 fewer jobs/month.

At an average job value of $3,500, that’s an estimated $14,000–$28,000/month in potential project opportunity per contractor (varies widely by trade, season, and close rate).

What Arch Web Design wants contractors to know

“This isn’t about pointing fingers,” said Joshua Gates, CEO of Arch Web Design. “Google has been willing to work with us to extend expiration dates when we can provide the right documentation. We’re putting this out there so contractors understand what’s going on, why it tends to blow up right before renewals, and how quickly it can choke off leads for businesses that are doing everything right.”

Resource

Pennsylvania Office of Attorney General — Home Improvement Contractor Registration (system status updates):
https://www.attorneygeneral.gov/resources/home-improvement-contractor-registration/

About Arch Web Design

Arch Web Design is a Harrisburg-based web design and digital marketing firm serving businesses across Central Pennsylvania and beyond. Led by Joshua Gates, a web developer with roots in early-2000s programming and local search, Arch Web Design builds high-performing websites and lead-generation systems focused on real-world results. The company has supported thousands of clients through a partner network of developers and digital specialists.

Joshua Gates
Arch Web Design and Solutions, LLC
+1 717-379-5487
email us here