What's to come?

The roofing industry is in a state of constant flux. In between developing a knowledgeable workforce, managing finances during an unpredictable economy and navigating constant supply chain woes, roofing professionals always must watch and prepare for ever-changing challenges and trends.

This month, Professional Roofing surveyed roofing professionals from the manufacturing community and asked them how they view the roofing industry in the near future.

Challenges

As with any industry, some challenges are unexpected and others are persistent. When asked what challenges they see the industry facing in the next one to three years, respondents shared similar responses.

Greg Hudson, director of commercial Dens® sales for Georgia-Pacific Gypsum LLC, Atlanta, says he sees upcoming challenges being the same as current industry challenges: workforce development and regulation.

“Training is in place and accessible from multiple outlets,” Hudson says. “The challenge is attracting the right talent to the industry and ensuring they are trained properly. [Another challenge is] understanding regulation, standards and sustainability initiatives that effect how we select and install products for roof systems and handle waste.”

According to David Sanders, sales director for Beacon Building Products, Herndon, Va., as new workers come into the industry, the challenge is making sure their technical and interpersonal skill development is balanced and blended.

Frank Palmer, senior vice president of sales for Elevate Commercial Roofing Systems, Nashville, Tenn., agrees the labor shortage will continue to be a persistent challenge and notes economic challenges, as well.

“The construction industry doesn’t have a strong pipeline of new entrants, which affects all the trades, not just roofing,” Palmer explains. “Additional challenges the roofing industry faces in the near future will be driven by economic factors such as high interest rates, which could dampen new construction.”

Supply chain issues

Supplying materials for construction projects continues to be a persistent issue for some manufacturers, particularly with lingering effects from the COVID-19 pandemic.

“Issues such as delays in material supplies, plus global logistics and geopolitical challenges, led to increased ordering throughout the industry,” Palmer says. “My sense is there still is lingering inventory sitting in warehouses as a result of over-purchasing during the supply chain crunch.”

Jason Stanley, CEO of IB Roof Systems, Grapevine, Texas, agrees excess inventory is an issue. He also notes the bullwhip effect.

“Initially, a shortage of supplies caused contractors to order more than needed, leading to excess inventory and a false sense of high demand,” Stanley says. “In response, manufacturers and distributors increased production and invested in new equipment, resulting in surplus stock, layoffs and discounts. To address these challenges, a comprehensive approach is needed to minimize disruptions.”

However, some manufacturers report no supply chain issues.

“Demand has been strong,” Hudson says. “Our supply chain is keeping up.”

Trends

Keeping up with technology and trends is essential for manufacturers. Some are seeing an increased demand for stronger roofing products.

“I have seen an increased awareness and demand for resiliency in roof systems,” Hudson says. “The impacts of weather and natural disasters, combined with costs and insurance availability, have heightened the need for resiliency.”

Stanley notes the size of products seems to be changing, following the idea that “bigger is better,” which, he says, may not necessarily be true.

“Thermoplastic roll sizes for low-slope roofing have grown from 6 feet to 10, 12 and even 16 feet,” Stanley says. “This increase in size has led to more production by some manufacturers—often without considering the practical effects on workers and how the product is used.”

Other manufacturers have spotted trends in the way roofing companies are doing business. Sanders says he has seen more owners selling their businesses to private equity firms.

Others, like Josh Kelly, senior vice president of business development for OMG Inc., Agawam, Mass., note the use of subcontractors seems to be increasing, which may affect other areas of the roof system installation process.

“Introducing new technology is becoming more difficult because products are purchased by one entity and installed by other parties paid only to provide labor at a fixed cost,” Kelly says. “This process reduces opportunities for installers to try something new.”

Growth and contractions

Despite a qualified labor shortage and supply chain issues, the roofing industry continues to thrive. Stanley notes the industry currently is enjoying a boom in the education and training arena.

“The integration of structured certifications and educational programs is gaining momentum,” Stanley says. “These initiatives are expected to enhance and standardize the dissemination of knowledge within the industry, ensuring a more unified approach toward professional development and industry practices.”

In addition to professional development, Sanders says he has seen growth in the formation of roofing companies. In the past, work was spread across few companies, but now, according to Sanders, the work has evened out across more companies.

Hudson also says he has seen certain aspects of the industry return to “pre-pandemic norms,” including overall demand as well as reroofing and new construction projects.

“This [return] shows demand is growing steadily across the U.S.,” Hudson explains. “Contractors report backlogs of three to six months, which is more in line with historical averages.”

Both Palmer and Kelly expect to see an increase in reroofing demand. Kelly also predicts roofs that had been repaired during the supply chain crisis likely will not last because contractors were forced to use only materials available to them at the time.

“Also, the roofs installed on new construction [projects] during the boom 20 years ago are reaching the end of their service lives and will require replacement,” Kelly adds. “Longer-term trends will be driven by system enhancements that address severe weather or new methods of construction that extend the usable life of a roof or improve sustainability in other ways.”

Surprises

No matter the predictions made, some aspects of the industry still can surprise experienced roofing professionals.

“It is impressive how the industry bounced back from a tumultuous supply chain environment,” Palmer says. “We all learned a great deal about how to manage our businesses with a fixed or reduced amount of supply.”

Similarly, Hudson noted he was surprised by the amount of stored material.

“Not knowing how long supply chain issues would last, a vast majority of contractors I have spoken with purchased and stored roofing materials during 2021-22 to ensure they could complete jobs on the books and any others that may come,” Hudson says. “2023 saw a correction in actual demand while distribution and contractors worked through existing stock.”

Kelly also was surprised by the amount of excess material the market brought into stock during 2022.

“It will be interesting to see how this trend affects distribution channels as we go forward,” Kelly says.

According to Stanley, he is surprised and concerned by profit margins in the industry, such as the disparity between margin dollars and margin percentages.

“Moving forward, there is a critical need for contractors to refine their estimating processes, ensuring transparency and accuracy that neither overinflates nor undercuts material expenses,” Stanley says. “This will safeguard against unwarranted fluctuations in profits.”

What’s next?

With unprecedented events often taking place, there is no way to know precisely what’s to come for the roofing industry. However, manufacturers continue to learn from experience to provide contractors and the community with materials required to complete successful roofing projects.

“In light of the industry’s vulnerability to unpredictable forces such as disease, severe weather and shifting policies, manufacturers have taken steps to mitigate risks,” Kelly says. “Some of these initiatives include investing in high-speed production equipment to replenish inventory and react quickly to changes in demand and qualifying redundant sources for raw materials to reinforce supply chains and restore confidence.”

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AVERY TIMMONS is Professional Roofing’s editorial assistant.