Roofers see steady backlogs, some gains in Q3: Survey

A quarterly report surveying the reroofing market showed that respondents saw year-over-year increases in both customer inquiries and install volume during the third quarter. 

Meanwhile, new research on managed repair programs (MRPs) found that contractors are seeing positive outcomes. 

What’s happening: In the latest Quarterly Market Index Survey for Reroofing, produced by a coalition of trade associations representing contractors, consultants, and manufacturers in the U.S. and Canada, 40 percent of respondents said they saw a year-over-year increase in customer inquiries, while 45 percent reported an increase in the volume of materials installed. 

• Of note: 56 percent of survey responses came from roofing contractors, and 44 percent came from roofing consultants. 

Zoom in: An index measuring sentiment regarding customer inquiries — based on a 0 to 100 scale — was 50 “for the blended low- and steep-slope reroofing market” during the quarter, per the survey; however, the figure for the steep-slope reroofing market, in particular, was 56.3 — up from 31.8 in the prior quarter. 

Yes, and: Project contracts and backlogs stayed relatively steady over the past two quarters.

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In other news: Contractors that participate in managed repair programs (MRPs) said the insurer partnerships generate consistent leads for their businesses, according to a new study by claims management firm Crawford & Company.

• 74 percent of contractors said the biggest benefit to participating in an MRP is the stream of work it provides, while 28 percent said it gives them a competitive edge.
• Additionally, 80 percent of contractors said customers’ expectations have risen in recent years, making trust in a ‘preferred contractor’ that much more valuable. 
• “Our industry has huge fluctuations, and the managed repair program really allows us to have a little bit more steady, stable work throughout the entire year,” one contractor told Contractor Connection. 

Of note: The study surveyed contractors across the restoration industry, but Contractor Connection representatives told Homepros that roofing contractors were also represented.

Yes, but: Contractors’ opinions on MRPs are mixed.

• “I converted 1 out of roughly 8 inspections, and several of the properties didn’t have enough damage to justify a roof replacement,” said Daniel Soliz, a former contractor, on Facebook. 
• “In theory, I can see how MRP programs can benefit both the carrier and the roofing company. The downside is that the person doing the inspection can end up doing a lot of the legwork — full inspection, estimate, required documentation, and tight timelines — with no guarantee of getting the job,” he added.

What we’re watching: Steven Badger, managing partner at the Dallas office of law firm Zelle LLP, told Homepros in an interview that he thinks MRPs are where the insurance industry is headed. Just as health insurers have preferred providers, he said, property insurers may get the same idea.

• “We’re seeing insurance companies much more interested in sending out hammers and nails instead of dollars and cents,” he added.