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Why Have Roofing Prices Gone Up in 2022?

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As I’m sure we’ve all been made acutely aware of over the last year, prices have been going up, especially for industries like building, construction, and of course, roofing.

The cost of materials has gone up greatly, as has the prices to transport them, so the entirety of the roofing industry has been affected, from manufacturers to supply companies, to contractors.

As the cost of raw materials increases, the products cost more to create, which in turn makes them more expensive for contractors to buy, and as gas prices rise, so too does the cost of transportation from a warehouse to a job site. All of this falls on the roofing contractors, who then have to pass the costs down to the consumers purchasing a roof repair or replacement. 

In order to help clear up any confusion homeowners may have regarding the price increases for a roofing project this year, we wanted to write this blog.

Today, we’re going to talk about:

Let’s get started!

Why are roofing prices going up?

The direct reason that the prices of roof replacements and repairs are going up is because, well, manufacturers are charging more for the materials used to complete the job. That being said, it’s also a wave of trickle-down effects that comes from the greater supply chain issues the entire world has experienced in recent years.

All across the country, manufacturers, and building suppliers are facing issues when sourcing and creating their products, whether it be a shortage of labor, or a sharp increase in gas and oil prices for transporting their goods. Those companies then have to increase their prices to keep their profit margins at the same level, which then is passed down to the building contractors who purchase the products to use and install on their projects. That of course, in order to keep the margins at least somewhat close to what they were, forces contractors to increase the prices they charge to customers.

You may notice that I never actually talked specifically about roofing manufacturers, suppliers, or contractors there. That’s because these sorts of shortages and increases are widespread across the construction, and all other kinds of industry.

Unfortunately, these kinds of price increases are affecting everyone, so homeowners will have to expect to pay more to get their projects done, until the ripple effect of increased gas prices and supply shortages finally calms down.

Who is most affected by the price increases?

Like we’ve talked about already in this article, the price increases are affecting every step of the roofing process, from the manufacturers, to the distributors, to the contractors, to the homeowner. However, that doesn’t necessarily mean that everyone is affected in the same way.

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Manufacturers are primarily affected by rising material costs for whatever they are using to build their products, which depends on where they are sourcing the material from, and what it is. If a manufacturer is able to switch where they are getting a material from, it may help keep some of their costs down. Also, as much larger corporations, they are less likely to feel the immediate hits of price increases, especially if they reduce spending on other areas.

Distribution companies usually act as a middle man between manufacturers and roofing companies.

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They purchase roofing and building materials in massive quantities, then sell them to smaller roofing companies, while also providing transportation of the materials to a job site. That second bit is a major reason why these companies exist. Most roofing companies do not have the storage space for all of the roofing materials they use, and even then, would have no way to transport everything needed for a roof replacement.

Since they function largely as a transportation business, these companies have been most affected by the increases in gas and oil prices, which has greatly affected their costs of doing business. To cope with that, they’ve had to increase their delivery costs that they charge to roofing companies.

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And that’s where roofing companies like us have seen the brunt of the price increases. In the cost of transportation of goods, and the increase in material prices. The material price increases are pretty easy to explain to homeowners, but a lot of times people aren’t very satisfied with that explanation, when their neighbors used the same company for a couple of thousand dollars cheaper a few years ago.

 

Also, some roofing companies are choosing not to increase their prices, lowering their profit margins, in order to win more jobs. Unfortunately, that may mean that the quality of the job may suffer in other areas, like reusing old materials.

Are all roofing systems affected?

Just like with the people who work in the roofing industry, every type of roofing system is affected as well. Some may feel it more than others, as metal has been hard to come by regardless of what it is being used for, but pretty much every kind of roof that you could look at has gone up in some way or another.

If you want to learn more about the different costs for each roofing system, check out our blog on that topic!

On Tops Roofing has been replacing and repairing roofs in the Raleigh, NC area for over 30 years, so we’ve been around for all sorts of ups and downs in the economy, and we’ll be here through this dip as well. Whatever your roofing project requires, we have the experience for the job.

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