As someone who runs a company servicing roofing companies – you can imagine I’m very interested in how this current recession (and the heavy inflation) will affect our industry, so I polled some growth-minded roofers and asked what they believe will happen.
- Will roofing be unaffected because it’s an anchored service, and people’s roofs won’t stop leaking?
- Will the fact that mortgage rates are going up force more people to ‘make due’ with an older house that may have a roof problem?
- Will the competing concerns of the market level out somewhat and leave the opportunities to grow or shrink – to the individual businesses?
If it is up to each business owner – how they respond to this current roofing recession, what can we do to win?
Here are the results of the poll
Here’s a super smart friend, Adam Sand’s take on the recession – and whether roofing is recession proof:
Here’s what several growth-minded roofers (and one other digital marketer) had to say about the recession and roofing:
“It’s going to grow for some, those who know how to market and properly manage the customer experience.
It will shrink overall, as people will not spend until they absolutely have too. This will cause poorly ran organizations and organizations who believe they can buy themselves out of a recession (yes I’ve heard this in a boardroom meeting before) out of business.
It will stay the same for those who are comfortable and complacent where they are and are great at all things at their current size.
I want to acknowledge that big, medium and small companies will end up in all three categories.”
Bill Kassakatis
HomeTown Exteriors
“There will be winners and losers. When things like a down economy and high interest rates hit. (Coupled with cold weather in some regions) it creates a tough scenario for roofers. You have to be able to adjust and be willing to stay the course, if not increase effective marketing strategies. Due to decreased search volume, it makes the searches available for valuable. In retail, having a well trained sales team will undoubtedly be a huge factor in continuing to capture market share. People being more apprehensive to spend are much more likely to do the repair than be flipped into replacement. If reps are well trained, can draw those objections out in advance by asking strategic questions, properly position finance options and then leverage that into a strong close, it will make a world of difference.”
Michael Stearns
Ascend Digital Agency
“I think it will thin the herd and there will be opportunities for growth.”
Drew Paetow
Best Exteriors Inc.
“Due to inflation and the economy, many Americans are not spending. This may be an indication of a dry spell coming.
Some companies will close their doors while others well positioned will weather the storm and soar.”
Rocky Roque Ortiz
Rox Roofing
Is Roofing Recession Proof?
Yes. The forces of nature don’t take a break during a recession. Nice to have exterior remodeling may dip, and companies will need to innovate and be more aggressive to stay the same or grow.
- According to SeekingAlpha – “The roofing industry has historically seen very little impact from recessions. Investors have two main pure-play options for roofing stocks. Owens Corning and Beacon Roofing Supply.”
- According to ContractorTalk – “Even when the economy is in a slump, roofs still need maintenance and repair. This is a big advantage for roofing contractors since even if new construction is down. There’s always some work available. Heavy rains and storms highlight leaks throughout the year, so contractors have access to work for the entire calendar. Full new roofs are installed more when the economy is doing well, but even in the worst of times, there will still be patches and other repairs needed.”
- According to iRoofing – “It’s luxury expenditures that people cut back on in hard times, and a roof is not a luxury unless your client is into Tesla solar shingles or Vermont natural slate. Clients that would otherwise go with the highest quality materials might opt for something more conventional during a soft or unpredictable economy, so sure, that could impact some specialized roofing manufacturers and contractors. “
How to win during a recession
- Train your team on storm restoration and the insurance process. Inclement weather doesn’t stop during a recession!
- Add in financing options – and lead with the monthly price, not the total, in marketing, sales, and at the door.
- Add in repairs – for instance – partner with UglyRoof to offer roof rejuvenation along with your repairs to make them more profitable and to make the homeowner more satisfied with the look of their roof.
