In the USA alone, roofing is a $52 billion industry. It’s estimated that it will grow 11 percent between 2016 to 2026. That’s an additional $572M a year over 10 years. The biggest driver of revenue? The need for replacement and installation of new roofs. Between the increase in demand for housing, and an extremely competitive real estate market, you can bet that the total revenue for roofing businesses is also about to skyrocket.
What are the Average Roofing Business Earnings in the US?
In the US, an average contractor makes an average of $84,856 per year. About 23 percent of roofing businesses earned a maximum of $50,000 annually; 40 percent of businesses earn $50k to $100k annually; and 24 percent can earn $100k to $200k. So long as you have the right tools, business mindset, and ambition – it's possible to continuously grow your revenue each year. However, revenue can suffer due to climate (long winters) and hard economic times.
What are the Average Roofing Business Earnings in Florida?
The average revenue for a roofing business in Florida is $100,000 per year.
What are the Average Roofing Business Earnings in Texas?
The average revenue for a roofing business in Texas is $72,000 per year.
How Does a Roofing Contractor Become Profitable?
The key to succeeding at owning a roofing business depends on the person, and your location. Many people have succeeded by hiring the right people, training well, and creating an invaluable culture. Others have succeeded at sales and are excellent at communicating with their customers. Some roofers have perfected their skill. One thing they all have in common? Drive, resiliency, and focus along with the ability to find strategies to keep them ahead of their competitors.
While the traditional way of roofing still works for some, many business owners are leaning into technology to streamline their operations. For example, many business owners rely on CRMs (hyperlink to other one), measurement software, email marketing, and digital proposals.
Looking for affordable measurement reports or proposal software? Book a demo with a member of our team to learn more.
No one did anything great on their own. While it may be a good idea to stay lean in your first few months, you’ll benefit by having great employees to share the workload.
How many employees will you need? Well that depends. Its smart to start with at least one other roofer to help get jobs one, and maybe a remote or part-time accountant/assistant. From there, growing a sales team, hiring a marketing manager, and an accountant/operations assistant will benefit you long term.
Let’s take a look at ABLE Roofing based in Columbus, OH. They have 330 staff members, and made $180 million in 2019. About 70 percent of their services are residential work, while 30 percent are in commercial work. J Ferg, a roofing company based in Wolfforth, Texas, has 120 staff and made $80 million in 2019 and 90 percent of their services are residential. Precision Construction & Roofing earned $64 million in 2019 with only 38 team members.
While the number of employees matters, it's crucial to focus on other factors affecting revenue such as pricing, residential/commercial services, and marketing your roofing business. Once you lay the foundation, you can build your business to where it needs to be effectively.
How Much Do the Top 10 Percent Earn in the Roofing Industry?
Below are the biggest players in the roofing business:
Centimark Corp - $627.6 million
Flynn Group - $382.1 million
Baker Roofing Co. - $277.5 million
Nations Roof - $200.7 million
Kalkreuth Roofing and Sheet Metal - $134.2 million
Best Contracting Services Inc. - $99.4 million
Schreiber Corp - $73 million
The Roof Depot Inc. - $62.3 million
Kpost Co. - $63.1 million
Latite Roofing LLC - $61.5 million
What is the Average Time a Roofing Contractor Stays in Business?
The average roofing company is in business for about 4 years. One of the reasons they go out of business is by pricing their services too low. In many states, roofing has a slow season during the winter, and an experienced roofer will know how to price their services to sustain them during the quiet months. New contractors may make the mistake of offering lower prices for their services, not knowing they need to have more revenue to get them through the slow season.
Fun fact: Roofers in warmer climates or in stormier areas make more on average than roofers in colder climates.
Local experience is another factor why roofing businesses go out of business faster. Not all states in the US deal with the same roofing problem. For example, some states deal with UV rays damaging roof shingles, while residents in Florida constantly deal with hail storm damage. If you're offering limited services — this problem could hurt your revenue in the long run. Make sure you consider taking on insurance jobs, and how to do that effectively.
To learn more about getting into insurance roofing, listen to our podcast on how to be successful at it here.
How Long Does it Take for a Roofing Contractor to Gain Profit?
How long it takes depends on the roofing contractors' experience and available tools. If you want to gain a profit as fast as possible, ensure that you are efficient as possible. The best way to do that is by implementing technology into your day to day. For example, roofers who order measurement reports instead of heading to hand-measure on site save up to 40% more time, and close 20% more deals.
Also, be sure that you are constantly marketing your business. Join popular roofing Facebook groups, network, check Google Maps to see if you can find damaged or aging roofs, or even go door-to-door to introduce yourself and get your business’s name out there. You need to create more awareness to gain more clients and deliver on your promises to keep them.
How Much Money Does it Cost to Start a Roofing Business?
Getting started with your roofing business will cost you between $15k to $20k. Expenses include registration fees, certifications, materials, transportation, wages, and professional liability insurance premiums.
Final Thoughts
To succeed in the roofing business, it's crucial to learn about the industry. Hire the right people and ensure that you go the extra mile to delight your customers. Most importantly, make sure that you have general liability insurance to protect your business against lawsuits arising from injury to a non-worker or property damage. Lawsuits can cost you a fortune and severely damage your business without insurance.
How Roofr Can Help Your Roofing Business
We offer $15 roof measurement reports delivered in 24 or less! We also offer digital proposals you can send off to your customers to e-sign in minutes. Book a demo with a member of our team to learn we’re the right fit for your business.
Related Blog Posts: