With the housing industry booming, many professionals are wondering if owning a roofing company is profitable.. If you’re attracted to this dynamic industry, there are plenty of reasons to be enthusiastic. Analysts estimate the roofing industry in the U.S. will generate $39.64 billion in revenues by 2031.
Roofing continues to be one of the more lucrative professions in the construction industry, and it’s only likely to get busier over time.
Why the Roofing Business Outlook Remains Positive
Here’s something you already know: Every building needs a watertight and reliable roof. Whether it’s a home or a commercial structure, a roof is equally important.
Old roofs break down, and every man- made structure will need a new one. Extreme weather is likely to shorten the lifespan of the average roof. The availability of energy-efficient materials could drive people to upgrade.
A tight housing market is driving growth in both urbanization of exurban areas and pushing home buyers into areas ripe for gentrification (and homes that need upgrading). The downward pressure on affordable housing will likely drive more investment and construction, keeping the outlook for new and upgraded roofing jobs bullish for decades.
Also, smart homeowners almost always regard a leak in a roof as an emergency. That expense will almost always remain a top priority (over, say, upgrading a consumer electronic device or even fixing a car).
All of this points to the ongoing demand and a tighter labor market for the roofing industry.
Is the Roofing Industry Profitable?
As a business owner, roofing is an appealing small business to get involved in. According to research, owning a roofing company can result in upwards of $76,000 per year for every crew they keep working. The more crews on more rooftops equals more money in your pocket.
As far as expenses, there are always hard costs associated with any small business, particularly one that requires you to offer a wide array of products and services to your clients. What are the most important considerations when you’re getting started in roofing?
Calculating the Margins For Owning a Profitable Roofing Company
Profit margins in the roofing business can be as high as 40%. How you maintain those margins are critical to the long-term success of your profitable roofing business. You may already be aware of the average cost of installing a new roof on a home in your region. That price alone doesn’t indicate what your future profit margins will be.
The following represents a list of the most common costs associated with owning and operating a roofing company.
Labor
Determine the costs of paying a team of 2-3 other roofers to install a roof safely and securely. This will obviously vary quite a bit depending on the cost of living in your area.
Roofing Materials
How are you going to source your roofing materials for your new business? Do you have your reseller’s license? Do you have contracts with wholesalers?
Your Salary
No one will work as hard or bring as much value to any small business as the owner. As such, you are the most important employee of your roofing business. How much income do you need to support yourself and your family as you get your roofing business off the ground?
Insurance and Taxes
Speak to a CPA and a qualified, licensed commercial insurance broker about the ins and outs of filing quarterly taxes as well as the costs of liability and workers compensation insurance.
Rent
A trustworthy leasing agent will be able to tell you about the rental costs for your roofing business.
Diverse Products
Today’s roofing customer knows there are dozens of different products available for their homes. Having a diverse product suite that includes a variety of roofing materials is one of the many aspects that can define your success.
Marketing and Advertising
What do you know about SEO, and how much will you need to spend to ensure your roofing business appears in a web search? How do you plan on promoting your business locally? Budgeting for all of this is the best way to make your roofing company profitable.
Advantages of Investing in a Roofing Franchise Opportunity
Owning a roofing franchise can allow you to see those profits a lot sooner. Why? Because a roofing franchise is a turnkey business that offers a faster ROI than if you go it on your own.
A franchise can include immediate access to:
Commercial space
Equipment and supplies
Licensing and insurance
Labor
Marketing expertise and resources
The knowledge base you need to be successful right away
Roofing offers an excellent franchise opportunity for both experienced construction professionals and passionate entrepreneurs who are eagerly looking for a high-growth industry.
When you become an Honest Abe Roofing franchisee, we work with you to provide:
Affordable, in-house financing options
Access to trained roofing labor
Marketing support and resources
Initial and ongoing training
Once you become a franchisee, we offer an industry-leading, immersive training program for franchisees (including your designated manager). During your training, we’ll teach you what you need to know about sales, recruiting/training new staff and subcontractors, and marketing. We will also train you on our AbeConnect business software so you can schedule all of your jobs, keep track of reporting requirements, and more.
To schedule a no-pressure, informational discussion about becoming a franchise owner, contact us today.