Chuck Chapman, Vice President of Central Roofing Co. of Arizona in Glendale, Ariz., and President of the Western States Roofing Contractors Association, noted that geography was a big factor in the performance of roofing contractors in 2008, as some states saw the housing market decline more than others while others saw a high level of storm activity. “It really all depends on the area of the country that you are in and whether you are doing commercial or residential work,” he said. “Typically the residential contractors are being hurt worse than the commercial guys, but that also depends on where you do business.”
He predicts the residential market will be relatively flat in 2009. “Housing has slowed to a point that I don’t know if it can get any worse than it is now, and I don’t think you will see much of an improvement for at least a few more years,” he said. “Commercially, we are planning on continued slowing. Commercial contractors did pretty well until the latter part of 2008.”
Contractors should plan for “a very tough road” in the year ahead, said Chapman. He had this advice for contractors in 2009: “Tighten your belts, run a lean operation and be as efficient as you can possibly be. Work will be at a premium, so you had better be able to differentiate yourself from your competition.”
Positive trends include the emphasis on more insulation in commercial systems and other environmentally friendly options, noted Chapman, but again there are wide variations between regions of the country, and governmental incentives vary widely form state to state. “It really all depends on your location,” he concluded. “I would like to say that everyone is concerned about the environment, but that is just not the case. Economics plays a large roll in this and unless there are incentives, monetarily or otherwise, then typically the environment takes a backseat.”
