Everyone knew the economy would be a key focus of the Power Panel as it kicked off the 2010 IRE on Monday in the La Nouvelle Orleans Ballroom at the Morial Convention Center.
Power Panel Moderator Tom Swartz, President of J. J. Swartz Co., launched the key topic right out of the gate, asking panelists what their companies had done to cope with the recent downturn in the economy and the steps they planned to take in the next year or so.
The Power Panel included Rob Kornahrens, Founder and CEO of Advanced Roofing; Jamie McAdam, President of F.J. Dahill, Co. Inc.; Alex Hernandez, Vice President of Clark Roofing; Lisa Sprick, President of Sprick Roofing; and Nelson Braddy, General Partner for King of Texas Roofing Company. They explored cutting costs, running efficiently, diversification and green products and systems as areas to focus on, but the discussion centered first on how long the economy might take to turn around.
“Start with the little stuff – cut costs,” said McAdam. “We worked our way through everything. We look at costs; we look at other opportunities we could add that could be profitable. When this started out, people said 18 months. Now you see talking heads on TV saying it may be five years. It’s hard to plan.”
Sprick agreed that costs are the first thing to examine. “We looked at every line item in the budget,” she said.
Braddy concurred. “Cut costs,” he advised. “We started with the easy things, and then moved on to the harder ones.”
He also pointed to diversification as a key strategy, including moving into photovoltaic (PV) and vegetative roofs.
Kornahrens cited green products and systems as a future growth area. “This administration has proven already they’ll spend dollars on green initiatives,” he said. Kornahrens believes PV systems are going to be around for the long term, and with the rising cost of electricity and available roof space, solar looks to be a continued growth market, although restrictions in lending by banks will dampen growth in the near term.
Hernandez stressed the importance of business partners in tough times. “It is important to maintain relationships,” he said, recommending that roofing contractors explore other businesses to connect with, including HVAC, plumbing and masonry contractors.
Braddy urged contractors to use slow periods to analyze and improve company operations. His company implemented new accounting software. “When things pick up, we want to run more efficiently,” he said.
Finding new customers is more important than ever, panelists maintained. “We are marketing this year differently than we have in the past,” said McAdam. “We’re spending more.” He acknowledged that it’s hard to spend more money on marketing when things are tight, so he urged contractors to spend marketing dollars wisely. “We’re looking a lot more on our mailing list. If you do a mailer and it goes to the wrong person, you’re just throwing it away.”
According to Braddy, the best marketing tool is doing excellent work and generating repeat customers. “If you do your job well, they will come back.”
Swartz also covered topics such as stimulus packages, outlook for 2010, service and maintenance, and challenges facing the roofing and contracting business.
Meanwhile, Donna Bellantone, Director of the IRE, said the Power Panel is just one example of the Expo’s commitment to offering valuable learning opportunities to help attendees sustain and grow their businesses.
In addition to the Power Panel, the IRE, which runs through Wednesday, includes an educational conference featuring an array of 43 sessions addressing a myriad of up-to-date industry issues with eight tracks designed especially for contractors, owners, CEOs, general managers, building owners, facility managers, foremen, superintendents, architects, engineers, consultants, estimators, salesmen, manufacturers and suppliers.
The 2010 International Roofing Expo is being held in the D&E Halls at the Morial Convention Center in New Orleans. For more information, call 800-684-761 or visit www.theroofingexpo.com.
