Knowing your numbers to survive a softer roofing market

By Jesse Sanchez.  

Contractors must embrace data, disciplined budgeting and risk management to stay profitable in softer markets.  

As economic uncertainty, shifting storm patterns and evolving insurance rules reshape future demand, TAMKO leaders are urging contractors to approach data, risk mitigation and retail strategy as core business functions rather than optional add-ons. During this Read Listen Watch® (RLW), Director of Contractor Engagement Jon Abernathy and consultant Jon Broce discuss how they have sat down with contractors across the country to discuss what it takes to endure a softer market.*  

Abernathy has spent recent months observing how demand has cooled in many regions, especially within new construction, while storm cycles have become less predictable. He described today’s environment as “very competitive,” where relying solely on projects following weather events is no longer enough to sustain growth. That reality is also reflected in business survival rates. After reviewing recent LLC filings, Abernathy found that only a small percentage of new roofing companies remain active after five years, with most folding long before that mark. He ties this directly to production risk, noting that installation errors remain the leading cause of warranty claims and long-term liabilities.  

The consequences can be steep. Abernathy recalled a contractor who accumulated more than $400,000 in warranty costs within just a few years due to overlooked installation mistakes. His advice to avoid those setbacks is straightforward: slow the pace of growth, tighten quality checks and prioritize best practices on every job.  

While Abernathy focuses on production risks, Broce turns attention to financial discipline. He encourages contractors to move away from anecdotal decision-making by tracking closing rates, average tickets and multi-year revenue patterns. Budgeting, he explained, should include realistic baselines and stretch targets while analyzing “trends, anomalies and patterns” to understand whether performance stems from storms or replicable systems.  

Both leaders agree that relying entirely on insurance work can leave companies exposed. Retail sales provide steadier revenue, while disciplined job costing and monthly reviews help owners identify what is working and what is not.  

Listen to podcast or Watch the conversation to learn more about how TAMKO’s contractor program and expert guidance can help you strengthen financial discipline!  

*The views and opinions expressed in this video are those of the participating roofing contractors and are based on their personal experiences in the roofing industry. These discussions are intended for general informational purposes only and should not be considered professional advice regarding insurance, financing, legal matters, or business transactions. Viewers are encouraged to consult with qualified professionals before making any decisions related to their business operations.