Looking back over the last decade, 2008 was an overall
average demand year, according to Sheree Bargabos, President of the Asphalt
Roofing Manufacturers Association and President of Roofing and Asphalt for
Owens Corning.
Looking back over the last decade, 2008 was an overall
average demand year, according to Sheree Bargabos, President of the Asphalt
Roofing Manufacturers Association and President of Roofing and Asphalt for
Owens Corning.
“However, the year was anything but average
in terms of market dynamics,” Bargabos said. “Low new construction demand was
offset by the high number of storms and the rising costs of raw
materials.”
“It was a challenging year, especially for
contractors as they worked to balance various, and at times conflicting,
economic forces,” she said. “Despite those challenges, 2008 was a year that
manufacturers continued to help broaden opportunities in the roofing industry
with enhanced shingle and accessory options helping create more opportunity at
the top of the house for everyone in our industry.”
Bargabos
said the current state of the economy is tumultuous, but she noted the roofing
industry generally fluctuates less than the economy.
“We
know historically that people invest in their homes when things are good, but
it is also true that when times are tough and money tight, roof replacement is
still necessary,” Bargabos said. “And while it is unwise to predict how weather
will impact our industry, we do know that it can greatly affect
outcomes.”
“Overall, our industry is strong, nimble and
foundational to a home’s longevity,” she continued. “Understanding that
volatile times demand shifting approaches to more variable cost and less fixed
cost always helps weather the storms.”
Bargabos said the
objective in 2009 is to be successful while being mindful of what you can
control. “You can’t control the weather or the economy, but you can control a
share of the market by selling smarter,” she said. “You need to not only
provide the right products and services but also prove your value in how you
work with the customer to explain how you will help meet their
needs; moving the conversation beyond just the price
point.”
“Also, think holistically about roofing as an
integrated system and consider offering related services such as a properly
insulated attic, which support the roofing system and extend your
business.”
Bargabos urged contractors to take the time to
educate potential customers about the full complement of products that comprise
an integrated roofing system. “Homeowners have minimal awareness of the
components involved in making the top of their house durable and energy
efficient,” she said. “Taking the time to provide them with information about
the complete system gives you a powerful opportunity to up-sell and to manage
price point justification.”
“Most importantly, market your
value rather than focusing simply on delivered price,” Bargabos said. “Quality
products and services build reputation and word of mouth particularly in a
volatile market. They will set you apart and drive business. Don’t
underestimate the power of referrals. Now more than ever, customer service will
be a key.”