Today, we cover the market dynamics of the roofing industry, the business cycle, and how these affect a local roofing business. New roofing business owners may find this post particularly helpful.
The Business Cycle and Its Importance
First, before discussing the dynamics of the roofing industry, we need to define the business cycle. Put simply, a business cycle is a reference to a period of time in which ebbs and flows in economic activity – such as production levels – take place within an economy. The period of time in a business cycle can range from several months to several years.
Business Cycles and Roofing Companies
Since American small businesses constitute 98% of all American businesses, their performances have a tremendous impact on business cycle data. For roofing contractors, a business cycle can look at the levels of production of roofing products over a period of time, or how increased or decreased demand for commercial roofing affects sales projects for a time. An examination of the commercial roofing industry now and in the future can be found in one of our earlier blog posts.
The Dynamics of Local Roofing Companies
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- Shared Marketing Strategies
The time of year also affects the amounts of roofing products that building material providers manufacture, warehouse, and have available for roofing contractors to purchase, among other market dynamics of supply and demand. In the colder regions of the United States, many building owners opt for roofing enhancements or better insulating, of which we cover a good portion of buildings with our Conklin single-ply roofing systems and spray-in-place foam systems. The colder months are therefore prime seasons for roofing contractors to market themselves and build greater brand awareness, priming themselves for greater market opportunity than their local roofing company competitors.
Since many smaller roofing businesses are family-owned, it is not unusual for businesses of this size to start slowing down around the holidays as well. Ultimately, the pace at which you offer bids, win new jobs, perform work, and bring the projects to completion is up to you.Ian Myers