Roofing and exterior contractors who emphasize profit alongside revenue may well distinguish themselves in the uncertain economic times the country faces in 2025.
That’s one of the main takeaways from a January 2025 ServiceTitan survey of 1,020 owners and executives in roofing, gutters, siding, and windows trades who report more than $1 million in annual revenue. The survey was conducted by Thrive Analytics.
“I think we're finally seeing a trend toward a focus on profit, especially for a lot of the smaller companies who for many years have just been more focused on providing paychecks rather than profit,” said Sue Drummond, Solutions Delivery Manager at ServiceTitan and a woman who has decades of experience in commercial and residential roofing. “I think they're starting to realize that the more money they can make, the more money they can invest back into the business to ensure its sustainability.
“It might become a generational company when there's more stability with it.”
Uncertainty is the undercurrent
That adjustment will have to be done subtly, and amid uncertainty. Almost two-thirds (64%) of those who responded said one of their top fears is the increasing price of materials.
Two other factors are causing concern that could erode profit: 58% pointed to labor shortages, and 53% to rising labor and overhead costs.
Drummond said the best way to deal with rising material prices is growth.
“The bigger you get, the more your prices come down,” she said. ““It's hard to tackle (material prices) directly. And then the labor issue … because roofing is such a difficult trade, companies should focus on retention and training. I think we're seeing more companies who are willing to bring in employees with no experience and train them.
“It used to be if you didn't have five years’ experience shingling, then we weren't even going to talk to you.”
Some companies in the roofing and exterior trades are also dealing with rising and fluctuating pricing by joining forces when purchasing supplies. Those bulk purchases could lead to reduced costs.
Drummond said some of these concerns could be alleviated by “working smarter.”
“Roofing is difficult,” Drummond said. “It's physically demanding, and workers are dealing with the elements. There's this mentality where they have to shift to better systems, better processes in order to retain their employees, otherwise they're going to leave. Because it is so hard.”
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Focus on procedures is growing
One process that could help is ensuring follow-up calls are made. According to the survey, only about half said they were following up on open estimates within 15 days.
ServiceTitan, the cloud-based software for the trades, can be set to automatically reach out to a homeowner based on rules set by the roofing business.
That automates touch points, but also serves as a reminder to the sales rep to reach out to the customer for new business. “Not only having it automate those touch points or reach-outs, but also notifying myself as a sales rep to go ahead and manually reach out,” they said. “Everybody can see the automated follow-ups, but there’s also value in having something to remind me it's time to send ‘Sue’ a text message and see how her roof is doing.
“This way you're getting those automated touch points, but you're also being reminded to reach out to that person.”
The technology in the software also makes the process of providing estimates more efficient, which can leave time for follow-up calls. Taking notes about a customer in ServiceTitan can provide a personalized reminder that one potential customer has a dog or a son or daughter who plays soccer. The more they build a relationship, Drummond said, the better the chance of closing the job.
“Templatizing your estimating process is going to reduce the need for follow-ups,” Drummond said. “When your sales team spends less time building estimates in the truck and more time closing deals at the table, you start winning more jobs on the first visit — which means fewer follow-ups are needed.”
Businesses could generate revenue and profit by offering financing for a roof, a significant out-of-pocket expense. The survey showed only 38% of companies offer financing, and only 40 percent of those do so on all jobs.
“In order to offer financing, you have to be a little bit more established and you have to have a financial institution that is going to trust you to do the things their way,” Drummond said. “It's extra paperwork and it's a system and process that I guess most maybe haven’t explored. They see it as a waste of time, but really the stats show that there's value in it.”
The right software brings efficiencies and features that make life easier. This can help a roofing business grow, Drummond said.
That means more time to spend with family or doing the things you love, or more time to work on the business instead of in the business.
