If you had to make a tough decision this year due to the economy (lay-offs, selling equipment, getting back on the roof, etc.), do you see this decision benefitting your company in the long run also?

If you had to make a tough decision this year due to the economy (lay-offs, selling equipment, getting back on the roof, etc.), do you see this decision benefitting your company in the long run also?>>>

Tough times foster ingenuity, and every angle of necessity that we analyze and implement in these times is only going the survivors stronger. So far we've managed to hold on with no lay-offs or fire sales, but it's definitely made us look at ways to become more competitive.>>>

Right now we have 3 guys laid off. If yesterdays mail had not brought in 2 jobs, 2 more were going to be laid off. Even with the new contractor registration here in PA, we are still running into unlicensed, uninsured jacklegs that are bidding bare bones. Several have been convincing people that it is SOP to put a second or third layer of shingles over a crumbly roof. "Better Insulation", they say. We have cut our profit margin down (yes I know that is suicide) and have branched out into areas other than roofing. Fortunately we have 2 excellent carpenters who have been building porches and decks and we have service contracts that are helping us keep afloat.

>>>

Our sales are actually up this year which is kind of a surprise. We have put two of our major competitors out of business so I'm sure that helps our volume numbers. We're advertising more which comes right off the top and getting more "tire kickers" instead of buyers but all in all we're fine. As long as the rain comes daily, which it does here in FL from June to November, there will be leaky roofs. I've always said that buying a new roof was like going to the dentist, you never do it until you have to.

JET>>>

Just getting through this period will be a victory in itself.

I have never experienced so many people who call contractors for an estimate, but do not follow through with having the project done by anyone.

Yes, if our company makes it through this period, we will be the stronger for it, but at the same time, the mental exhaustion takes it's toll.

I have been roofing for over 31 years and owned my own company for 25 + years now and with the head-aches of trying to collect a substantial sum through the court system and also keep things running, it takes a lot of the wind out of the sail.

What I attempt to do, is find something positive to stay focused on and build my mental energy from there.

This leaner times period just shows me how important the old, "Planning For A Rainy Day" adage is and I got caught with not as many reserves that were liquid at the time that I need them to be. Property used to be an excellent resource and I have a lot of that, but it is not the type of green that pays the bills.

In the future, more money will be alloted for the Rainy Day Account.

I am stuck with the business suicidal option that Terry mentioned. Either lower my profit margin or offer a lesser quality product, just so that my proposals can compete. The higher value premium service proposals are being chosen much more rarely now, which was my bread and butter.

But, as long as I keep the goals in mind and continue to work and persevere, things will work out and make me a shrewder businessman for it.

Ed

>>>

I find myself being more conservative with reguards to estimating. Shopping around for a better price on material etc, the xxxx's I usually throw in have been trimmed down too. Three weeks ago we attended a pre-bid with SIXTEEN other contractors. We bid and won the job so now I am paying much closer attention to the logistics involved, loading the roofs, trash removal, time-lines, due to the low numbers and the greater risk of losing money. This may or may not affect the way we do businness in the future but it will certainly highlight areas where the fat can/should be trimmed. Company wide though we are still experiencing a shortage of decent help. Go figure, somethings never change..... >>>

JET Said: Our sales are actually up this year which is kind of a surprise. We have put two of our major competitors out of business so Im sure that helps our volume numbers. Were advertising more which comes right off the top and getting more tire kickers instead of buyers but all in all were fine. As long as the rain comes daily, which it does here in FL from June to November, there will be leaky roofs. Ive always said that buying a new roof was like going to the dentist, you never do it until you have to.

JET

What kind of adertising are you doing because work is slow in South Florida>>>

Ironic that you should ask these particular questions as I had to do all of the above things LAST year. Including the ETC.... It all started with a major drought in our area in 2007, which got us into debt. 2008 was better but did not provide the necessary means of overcoming this like all previous years had done if we had a bad year. And now this economy thing of 2009. Geez! I laid off ALL office and sales staff and repair personnel nearly one year ago now. If not for that move we would not have survived last winter. It got so slow last December that the roofers had to look for work elsewhere as well and it ended up being just me and the wife on the phones. AND THAT WAS IT. For about two months. During that time i did all sales, all repairs and all whole roof replacements with one helper only. This business is just so weather dependent. When the spring FINALLY rolled around it began to rain A LOT and the roofers returned. Not long after that I began to get more calls than i could handle and 1 salesman was hired back on who had spent about 5 months on unemployment. Some equipment was sold as well during the down time. The business is a lot more profitable today than it was before. And i think i lost about 25 pounds too and got paid to do it instead of having to pay. lol The debt was unbearable and impossible to pay off in full as by the time i realized how bad it really was i no longer had the credit necessary to borrow. So it was turned over to a debt restructuring company that makes settlements and gives monthly payments that allow you to survive. Ruins your credit but gets the bills paid off over time. About 75% of the debt has already been paid off. Again its all about the weather baby! It just recently quit raining for about a month and the work dried right up again to NIL save a handfull of repairs. Well monday morning it stormed like crazy and we went from dead to wide open in 6.2 seconds. And that reminds me, I gotta get the heck off this computer and go to work. Good Luck Everybody and best wishes!>>>

We have been through 5 recessions down here in Florida since 1970, but continued to surive, we did what we had to from layoffing people to downsizing, finally in 2006 My son said this is it he let go of 100 employees and sub contractors and started to cherry pick the market We have had it with the insuranc building department and people that don't pay their bills, we worked the storms and that turned profitable, but we ran across the scum of the earth doing peoples roofing. We stuck it out and eventually started to move with the storms. Now we are a storm chaser lol, but we do it a different way. We have direct approach with certain property adjusters and they reccommend or work so we get the cream of the crop lol>>>

Spudder Said: We have been through 5 recessions down here in Florida since 1970, but continued to surive, we did what we had to from layoffing people to downsizing, finally in 2006 My son said this is it he let go of 100 employees and sub contractors and started to cherry pick the market We have had it with the insuranc building department and people that dont pay their bills, we worked the storms and that turned profitable, but we ran across the scum of the earth doing peoples roofing. We stuck it out and eventually started to move with the storms. Now we are a storm chaser lol, but we do it a different way. We have direct approach with certain property adjusters and they reccommend or work so we get the cream of the crop lol

Hey Daryl,

Nice to hear from 'ya..........where you been?

JET>>>

In 1982 we had a real bad recession here in Michigan. I remember my dad running around threatening to close the business. He is my inspiration I remember him telling me that for 2 winters he had company loans for $200,000 and was paying 21% interest only payments. I am coming to the conclusion that if many of us roofers are to survive these changeling times it will be the ones that cut there overhead expenses the fastest to the bare minimum. Rain, snow, sleet or ice is not going to help the commercial roofing industry in and around Metro Detroit. I do believe he who does survive will come out on top, and he whom like me have little set aside for a rainy day (or have gone through what you had put away) will have a very difficult time surviving.>>>

I don't know where most of these guys do business but here in so cal and we are getting driven into the ground with the state going bankrupt and the economy going in the tank and work comp insurance skyrocktingm, we are getting under bid by 25% by contractors saying they have insurance and all the rest we are sick of it :side:>>>

AMEN!!! I HEAR YA BROTHER>>>

I had made my mind up before the really bad part of this cycle started. I watched and listened as one after another fell some more gracefully than another.Some are still in the fall . I was sounding the warnings in the beginning and still try to wake others . It isn't the end as I see it . Just a cleaning out a shaking .Where will you be . Because of the position I've put my self in I have been able to live a good life . When I'm home from being around the country with my other job , I do repairs and mostly small to medium residential T/O's.... "There is a new market opening up !! ".... It is not for the faint of heart . I am testing the waters . I can do this only because I'm not struggling with major bills and debt. My sons will be the benefactor if they so desires. I have roofing to thank for what I learned and have . That is as I see it the reason I stay connected to this industry. I get this industry . I just can't leave the game . There is a time and place for everything.>>>

We are still working and making a living i guess we are one of the lucky few,but i also work a large area from new orleans to lafayette to baton rouge and beyond.What i have done has seemed to work so far im no genuis but im making a good living,were even getting new homes to roof again i thought the genarals had quit building.>>>

belive it or not, iam having a great year so far. booked up untill mid sept. been busy since early april most jobs have been bigger and more troblesome than usual. been replacing some tools this year so some of the money is going back into the ecomony. crazy weather the last couple of weeks is nuts, rains on the job site and 2 miles down the road bone dry.>>>