Rarely do you find anyone in the construction business who hasn't been victimized by "shrinkage" of tools, equipment and inventory. Most estimates peg construction theft to be a $1 billion industry. Pilferage is estimated to add a percentage point or two to the cost of new homes and small commercial buildings.
There are numerous issues affecting our industry and our world, and it is often difficult to choose which one to target in this column. This month I could boil it down to no less than two. So, in the spirit of springtime and the return of baseball, here is a double-header for you.
Over the course of the year, your company probably spends a significant amount of time and resources in providing training in such areas as computer operations, equipment operation and organizational procedures. These are all important elements of a successful company. However, they are all ancillary items, which can increase efficiency but do not add to the bottom line. In most cases, the type of formal training that will benefit your company the most is never provided: training for the applicators.
I know people get tired of hearing me preach about the importance of knowing your numbers. I laugh when people mistakenly think I am an accounting or financial nerd. I actually am not a detailed accounting type, and that is one of the reasons I left my first job as a cost accountant. I did not want to spend the rest of my life beating on a calculator all day. I do, however, know the financial answers I need, even if I do not compile the information myself. I use this information to make strategic decisions and run my business. Running a business without the numbers is like groping around in a dark room trying to find a black cat.
Roofing can be a tough business. If it rains too much, you can't work. If it doesn't rain at all, there is no need for your services. You can be doomed if it rains but doomed if it doesn't. To make matters worse, all the storms and crazy weather patterns seem to have caused particular havoc in people's work schedules.
Julien Benjamin Jr. was the first to hire me into the roofing industry and was a mentor of mine far beyond the time we spent working together. He was darn good at what he did and he always ran a first-rate shop. One of the first lessons he taught me comes to mind at this point in the world of commercial roofing: "Never be ashamed to make a profit."
The power of the brand! A strong brand draws people. A strong brand allows people to trust you much more quickly than a weak or nonexistent brand. Unfortunately, most roofing companies have very weak brands.
Jeff Edson of Restoration Roofing, formerly Western Systems Inc., in Longmont, Colo., had a dilemma. There was another roofing company nearby with a similar name (Western Roofing) and customers tended to confuse the two, so Jeff decided to enact a name change. He sought my opinion on his marketing strategy for a mailing campaign to inform clients of the name change to Restoration Roofing.
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