The combination of the increase in new home construction across the United States, in addition to an surge in home repairs as a result of seasonal storm damage, construction companies and specifically roofing contractors, are enjoying an upsurge of business and profits so far 2018.
Reflecting this positive growth trend is the seventy-five percent of construction firms which have expressed their plan to increase and broaden their business operations in 2018 to keep up with increased business. This indicates that the construction industry is booming overall, while roofing companies and contractors are optimistic that the demand for their services will remain steady, strong and profitable into the future.
Nevertheless, certain factors may come into play that could put a damper on profits in the constructions industry. Specifically, rising material costs and a shortage of qualified employees pose a potential threat to the growth of the industry.
With rising oil prices and recent enactments of U.S. tariffs on steel and aluminum imports, roofing contractors and others in the construction industry may feel the effects in the form of higher prices on materials passed down from suppliers.
Moreover, almost 90 percent of commercial roofing contractors have expressed that they are experiencing increased labor costs as of late. The National Roofing Contractors Association has called the ongoing shortage of qualified workers as the “most significant limitation on the ability of roofing industry employers to grow their businesses in today’s economy.”
If contractors fail to keep a close eye on these potentially rising prices of both materials and workers, these costs may end up encroaching on their profit margins. Contractors will either need to pass on these costs to customers by raising their prices, or at least incorporatie a contingency clause in their contracts to cover potential increases in materials and labor costs should they occur.
Despite the potential for rising costs, when it comes time to build a new roof or repair a damaged one, top construction and roofing companies across the country concur that skimping on professionalism is not the answer.
Customers should always seek out “reputable, professional roofing contractors who are licensed and able to provide a minimum of three references attesting to the quality of their work,” explain one of the best roofing contractors in Indianapolis. Reputable companies will have proof of workman’s compensation and liability insurance, and will not ask for the entire cost of a roof to be paid upfront. Finally, a qualified roofing contractor should be happy to answer customers’ questions and address any concerns.