Roofing material increase coming in April
Depending on where you live or do business you’re about to see yet another major price increase in roofing materials. The information that we have seen indicates that it will be anywhere from 8-10% pretty much across the board. Those are the percentages that have been communicated to us in the Bay Area. This will have impact on many people. The impact will be felt by a homeowner who is in need of a new roof. The impact will also be felt by licensed roofing contractors trying to compete with fly by night roofers.
Higher prices are pretty much a forgone conclusion as our asphalt costs are directly tied to the cost of crude oil. That said, I can’t help but wonder how it is that all of the roofing manufacturers can go on business as usual then one of them decides to raise their prices and the rest all follow. Pretty much the same percentages/amounts on the same day. I really hope one of these days one of the major players sticks to their guns and leaves their prices lower than those who are raising them and win some extra business along the way.
Roofing material costs on the rise – Homeowner Impact
Starting in April homeowners in need of a new roof will see the cost to get the job done increase. If it doesn’t impact you, you’re either dealing with a roofing contractor who isn’t up to date on the new pricing or you’re dealing with a contractor that is not properly accounting for their true costs of doing business. Neither of these scenarios are a good one. Both scenarios decrease the chances of the roofing contractor being around to support you should you ever need them to after the job has been completed.
In both of the above cases the homeowners stands to lose out in the long run. If the roofing contractor contracts to perform the job for X and then upon ordering the materials learns that it’s going to cost them what they had originally accounted for plus 8-10%, they will most likely try and capture that 8-10% somewhere else. Two ways to capture that 8-10% are by either adding additional roofing costs to the job OR they cut costs elsewhere. Either way the homeowner receives less value than they signed up for.
Note: If you’re already contracted to have your roof replaced you should be fine, as long as your contractor can get some price protection from their supplier on the roofing materials.
Roofing material costs on the rise – Contractor Impact
Many licensed roofing contractors are competing against low bidding contractors that may or may not be licensed and insured. With roofing costs on the rise, that gap may get larger and the legitimate contractor may lose some jobs to the low bidding contractor simply on price. If it puts your company in a compromised position, sometimes it’s best to walk away from the job that is purely a price driven buying decision.
In the end, legitimate contractors need to make a certain amount of revenue on a job to properly cover their costs or risk becoming a statistic. Roofing contractors have extremely high worker’s compensation rates and those costs have to be passed on to the consumer on each job performed. Add to that, the rising costs of fuel which are increasing daily it seems and you have a recipe for disaster. It is imperative that contractors accurately account for all of their costs prior to providing the customer with an estimate and eventually a contract.
Roofing contractors, make sure your costs are properly accouning for all of your costs. Sit down and prepare a list of items that cost you on every job and make sure to not overlook any price increases on any of them. Simple math will show you really quickly where you might be letting thousands of dollars slip through your fingers each and every year.
We use The Roofing Estimator software to accurately account for all of our costs. Our estimates are calculated to the penny and with 100% confidence. The Roofing Estimator has built in warnings that alert us to some of the over-sights often made when trying to quickly finish up an estimate to meet with a client.
If you’re a homeowner it’s highly advisable to place a strong consideration on using only licensed & insured roofing contractors. You’ll most likely be glad you did if/when you might need to call them to come back out and address any concerns you may have. We’ve received many calls in the past couple of years from homeowners who had roofing work performed by a company that is no longer in business. In the majority of cases it was either work performed at sub standard guidelines or the materials used were not the best solution available.
As a wise man once told me many years ago, buy smart the first time and scream only once.
If we can be of assistance to you please don’t hesitate to contact us.