The roofing industry has a high turnover rate, with many new roofing companies starting up and others going out of business every year. It’s important for homeowners to do their research and choose a reputable roofing company that offers fair pricing and high-quality workmanship.
- The price of materials is increasing, but many roofers are not accounting for the increased prices of roofing materials and are still offering low quotes by cutting corners.
- Low-priced roofing services may lead to the company going out of business, risking the homeowner’s warranty.
- Warranties are often tied to the roofing company and not the actual roofing materials. If a company goes out of business, there may be no one to honor the warranty if there is an issue with the roof.
The Number of US Roofing Contractors has Declined 0.2% per Year Since 2018
With the price of materials increasing, many roofers are not accounting for the increased prices of roofing materials and are still offering low quotes by cutting corners or using lower quality materials. This can result in subpar workmanship and may cause the roof to fail sooner than expected, leading to potential legal issues and damage to their reputation. Some roofing companies may be operating on lower profit margins or have access to bulk discounts on materials, allowing them to offer competitive pricing.
When roofing companies lowball their quotes and go out of business, it can have a significant impact on warranties. Warranties are often tied to the roofing company and not the actual roofing materials. If a company goes out of business, there may be no one to honor the warranty if there is an issue with the roof. Additionally, even if the manufacturer offers a warranty, it may be difficult or impossible to claim it without a certified installer or contractor.
Warranties for roof replacements are important because they provide homeowners with protection and assurance that they will not be responsible for the cost of repairs or replacements if issues arise due to faulty materials or poor installation. A warranty can also increase the value of a home and can be a selling point for potential buyers. Without a warranty, homeowners may face significant expenses and may not be able to hold the roofing company accountable for their mistakes.
Homeowners should always choose a reputable and established roofing company to ensure their warranty will be honored in case of any issues with the roof.
Why do Roofing Companies go out of Business?
There are several reasons why roofing companies may go out of business. Some of the most common reasons include:
- Poor financial management: Poor financial management can lead to cash flow problems, which can make it difficult to pay suppliers, employees, and other bills.The price of roofing materials has been steadily increasing over the last few years due to several factors, including inflation, increased demand for housing and construction, supply chain disruptions, and tariffs on imported materials. Additionally, the COVID-19 pandemic has had a significant impact on the industry, causing material shortages and supply chain disruptions, which have further driven up prices. As a result, homeowners and contractors may need to adjust their budgets and expectations when it comes to roofing projects. Quotes too low can be a sign that a roofing company isn’t going to be around much longer.
- Poor workmanship: If a roofing company doesn’t provide quality work, it can lead to a bad reputation and lack of business. Some roofing companies are inexperienced and may not be able to handle complex roofing jobs or provide the necessary expertise for certain types of roofs. If a roofing company fails to keep up with industry changes, such as new materials or installation techniques, it can become obsolete and lose business to competitors.
- Lack of proper licensing and insurance: Roofing companies that don’t have proper licensing or insurance may not be able to obtain permits for jobs, leaving them unable to work legally. Legal issues, such as lawsuits or fines, can be financially devastating for roofing companies and lead to bankruptcy or closure.
Why You Should be Concerned if Your Roofing Company Goes Out of Business
It’s essential for homeowners to research and choose a reputable roofing company with proper licenses, insurance, and warranties to avoid potential issues if the company goes out of business. If the roofing company that replaced your roof goes out of business because it can lead to several potential issues.
- If the company used subpar materials or workmanship during the installation, the homeowner may face costly repairs or replacement sooner than expected. If the company is no longer in business, there may be no recourse for the homeowner to seek a warranty claim or any compensation for the faulty work.
- If the homeowner encounters any issues with their roof, such as leaks or damage, they may have difficulty finding a reputable contractor to make the repairs. The lack of available resources can make it challenging to find someone who is qualified to perform the work, and the homeowner may end up paying more for the repairs due to a limited number of options.
- If the roofing company was not properly licensed or insured, the homeowner may be held liable for any accidents or injuries that occur during the installation or repair process. If the company is no longer in business, the homeowner may have to cover these costs out of pocket, which can be a significant financial burden.
What to Look for in a Roofing Company
Knowing whether a roofing company is professional or a scam can be challenging, but there are several indicators to look for:
- Proper Licensing and Insurance: A professional roofing company will have all the required licenses and insurance to perform roofing work in your area. You can check with your state’s licensing board and insurance provider to confirm their credentials.
- Physical Address and Office: A legitimate roofing company will have a physical office address and contact information that you can verify. Be cautious of companies that only provide a P.O. Box or have no physical presence.
- Reviews and References: Check online reviews and ask for references from previous clients. A professional roofing company should be willing to provide you with a list of satisfied customers who can vouch for their work.
- Written Contracts and Estimates: A professional roofing company will provide you with a written estimate and contract that outlines the work to be done, the timeline, and the cost. This protects both you and the company from misunderstandings or disputes.
- Warranty and Guarantees: Legitimate roofing companies will offer warranties and guarantees for their workmanship and materials. Be wary of companies that offer no warranties, warranties less than 10 years, or only offer vague promises.
- Professionalism and Communication: A professional roofing company will communicate clearly and professionally with you throughout the entire process. They will answer your questions, provide updates, and be respectful of your property.
It’s essential to do your research, ask questions, and trust your instincts when choosing a roofing company. If something seems too good to be true or doesn’t feel right, it’s better to be safe than sorry.
SlopePro’s Lifetime Transferable Guarantee
At SlopePro, we stand behind the quality of our roofing services and want to provide our clients with the best possible warranty coverage. We are proud to be the only roofing company in Virginia and Georgia that offers a Lifetime Transferable Guarantee*. While other companies typically offer material warranties ranging from 20 to 40 years, they only provide a 1- or 5-year guarantee on installation. We go beyond that by matching material warranties with our quality installation services, which means you get double the warranty coverage. With SlopePro, you can have peace of mind knowing that your roof is covered for years to come.