Texas roofing operator cites storm chasers, rising material costs as market pressure points

Texas roofing contractors are being squeezed from two sides.  

U.S. roofing wholesale prices have climbed more than 30 percent over the past five years, according to federal data, while out-of-town ‘storm chasers’ have moved into Texas, leaving local operators, including Regenesis Roofing owner Matt Werling, competing in a market where both contractors and homeowners are under pressure. 

What’s happening: Storm chasers remain one of the biggest pressure points in the Texas roofing market, especially following major hail events. 

• Too many out-of-town crews arrive after a storm, sell jobs quickly, collect revenue, and leave once the local pipeline slows down, Werling said in an interview with Homepros. 

Why it matters: The issue often shows up months later, when homeowners need warranty service or repairs and can no longer reach the original contractor. 

• “If they’re not going to open up a branch here, how do the warranties work?” Werling said. “The local guys are the ones that are having to handle warranty issues that the other company no longer wants to service.” 
• He noted that such situations can force a homeowner to pay for a roofing job twice — once for the original roof, then again when a local contractor has to fix a problem. 

Go deeper: Werling said local contractors can handle storm work in their markets without outside crews cycling in and out. 

• “There’s no need for the storm chasers to come in,” he said. “Unless they open up a branch here, how are they really going to service those customers that they’ve sold?” 
• “Unfortunately, a big part of roofing is to make as much money as fast as you can, and get in and get out,” he added. 

State of play: 95 percent of Regenesis’s work comes from referrals, especially real estate partners, Werling said, rather than door knocking and big ad campaigns. 

Zoom out: Werling said his distributor typically increases material prices about once a year, but he doesn’t know what to expect this year, considering volatile gas prices and an uncertain economic landscape.

• Typical hikes run between five and ten percent, he noted, adding that he has “never seen [prices] go backwards.” 
• “Roofing costs have probably doubled” during his time in the industry, he added. 

The bottom line: Werling pegged his success to maintaining a service-minded approach, backed by his Christian faith. 

• “I want to make sure that the heart of my business continues to stay service-minded over sales. Of course, I’m in the business to make money. But at the same time, I have integrity,” he said. 
• “The market is saturated with roofers. Everybody knows a roofer, especially locally. And so at the end of the day, it would leave more meat on the bones for the homegrown guys that are here, that are wanting to be here,” if the storm chasers stayed out, he added.