Q&A: Counting on Coatings

The
supply chain issues that plagued the roofing industry following the
COVID-19 pandemic have begun to ease. Record inflation has also waned,
yet remains persistent, as does a sense of general economic uncertainty.
While talk of a “soft landing” that the Federal Reserve has been
intimating seems attainable, the jury is still out on whether that comes
to pass or the economy eventually slips into recession.

While
the ambiguity may not be good news for roofers — with clients taking a
“wait-and-see” approach to capital projects — there is an opportunity
for contractors looking to expand their use of roof coatings or even
delve into the marketplace for the first time.

RC asked
several leaders in the roof coatings space about the state of the
coatings market, the opportunities for roofing contractors, and what
their companies are planning for the future. Here’s what they had to
say.

RC: How would you describe the state of the roof coatings market today?

Keith Stevenson (KS): The
roof coatings market is limitless. Not only are roof coatings an ideal
solution for new construction, but they also optimize roof retrofits.
Thus, the demand for roof coatings persists, even as the construction
market fluctuates. This sector has a lot of opportunities for the
contractors currently active in it and those considering entering the
space.

Chris Huettig (CH): The roof coatings
market is strong and continues to ride the growth spurred by the
pandemic when new roof components were experiencing long back orders and
coating raw materials were readily available.

Roofing
contractors needed to continue caring for their customers, so they
looked to maintenance, repair, and restoration with coating systems to
help their building owner clients. Advances in raw materials continue to
help manufacturers meet industry demands and provide options for
extending roof service life.

The drive to build more resilient
roofs has created space for coatings, which promote repair and
maintenance to reduce unnecessary waste going to landfills.

Joel Shealey (JS):
The roof coatings market today is strong but may be beginning to level
off the rapid expansion it has seen over the last several years. Many
building owners and managers are now aware of how they can increase the
life of their roofs through the proper use of coatings and proper roof
maintenance.

We are curious to see how the current financial
lending markets may lead to a possible second increase in the adoption
of coatings in the next few years.

Kyle Stavish (KS2):
Sales of roof coatings continue to grow significantly faster than other
roofing products and silicone coatings continue to lead the way by a
wide margin. More and more building owners recognize that roof
restoration is a smart investment in their properties and good for the
environment.

And insurance companies are becoming more open to
approving a roof restoration. They have a better understanding of and
greater confidence in coatings. So, when responding to storm damage or
reviewing a policy for renewal, they’re asking whether the roof can be
coated rather than replaced.

Armando Rodriguez & Jayne Rollason (PG):
Our customers sought alternative roof materials during COVID and the
raw material shortages; this increased the recognition of the benefits
of roof restoration. Some of the benefits include reduced labor costs by
not tearing off the current roof system and the reflective properties
of the coating, which reduce the cost of cooling the building, putting
less stress on HVAC systems. This growth is regionalized and depends on
the roofing type used in each area.

RC: Are you still feeling any impacts of the materials shortage? What lessons were learned?

KS:
Over the past few years, we all witnessed how the unpredictability of
world events can impact the supply chain. Something that occurs
globally, which we cannot control, can affect our supply. Our team has
learned the importance of being as prepared as possible for the
unexpected to stay ahead of the curve. And I believe that most companies
active in our industry also now understand they should.

CH:
The importance of following core values of working closely with raw
material suppliers, having approved secondary sources, and sound
inventory management were necessary and continue to be leading
principles to hedge against shortages and disruptions.

Regarding
the industry, we found contractors wanting more training on qualifying
roofs and application procedures to set themselves up for success and
make informed decisions.

“Our team has learned the importance of being as prepared as possible for the unexpected to stay ahead of the curve. And I believe that most companies active in our industry also now understand they should.”
— Keith Stevenson

KS2: Thankfully, we rode
that wave and are well-stocked. Coatings continue to grow in market
share, and we are fully prepared to meet that demand. The industry will
still undergo some stabilization in the back half of this year. Supply
and demand are in the process of coming back into balance.

PG:
We have mostly moved past the raw material shortages. A few materials
still pose a challenge, but the scale of this is limited compared to 18
months ago. Like many other manufacturing companies within the roofing
and other industries, we have learned to establish and maintain multiple
suppliers for each raw material. Also, good supplier relationships and
strong customer communications are key factors for success.

RC:What are the chief misconceptions about coatings in the roofing market today?

KS:
A common misconception is that anybody can apply these products at any
time of day. We are firm believers in training and safety. While roof
coatings provide exceptional benefits, contractors must be
professionally trained to install them correctly.

The obvious
goal with any roof coatings application is that, once applied, the roof
will outlast its warranty. However, contractors using products without
proper training put themselves at risk for problems. Training is key and
ultimately helps the contractor maximize customer satisfaction and
profit.

KS2: Many contractors consider coatings
as new roofing systems, like TPO, EPDM, PVC and modified bitumen. They
are not new roofing systems. [Coatings] are restoration products. They
will bring an aging, but still-sound, roof to near-new condition,
extending its life, sprucing up its appearance, providing a fresh
warranty, and potentially enhancing its energy efficiency.

They
are not “miracles in a bucket” that will magically breathe new life into
a roofing system that is unsound or has unsolved underlying issues. The
only way to overcome this misconception is for manufacturers to provide
effective contractor training. That is a big emphasis for us.

JS:
Everyone in the industry must remember that no one has a
miracle-in-a-can to fix a roof beyond repair. As an industry, we feel
that most [contractors] do a very good job of passing on questionable
applications and helping to ensure the continued good reputation of the
liquid-applied roofing industry.

RC:What other challenges do you foresee impacting the coatings market in the next year?

CH:
Continuing to meet the expectations of contractors and building owners.
Over the past three years, coatings have seen tremendous growth in the
number of contractors adding them to their solution offering, and
acceptance by the building and real estate industries. Manufacturers
must continue supporting their contractors to help them maintain
high-quality installations that provide value to clients.

KS2:
There is a big need for contractor training. We’ve seen a surge of
interest in training from contractors who did a project or two over the
past few years when supplies of other roofing products were limited.

They
had a good experience and now want coatings to be a regular part of
their businesses. They want to be trained and approach coatings with the
same professionalism they have in every other area of their businesses.

“They are not new roofing systems. [Coatings] are restoration products. They will bring an aging, but still-sound, roof to near-new condition, extending its life, sprucing up its appearance, providing a fresh warranty, and potentially enhancing its energy efficiency.”
— Kyle Stavish

JS:
The two things likely to have the highest impacts on the coatings
market are the current financial markets and the fact that we are
[heading] into an election year. High interest rates and election-cycle
uncertainty tend to suppress investment in the building envelope
industry.

PG: A storm or weather event could
definitely put pressure on material supply and production capability. We
prepare for these potential events as best as possible by building
inventory.

RC:Any message to roofers not in the coatings market?

JS:
Coatings are an excellent alternative and addition to your sales and
marketing plan. They’re a great addition to any contractor’s toolbox,
allowing for

ersification and increased sales.

CH:
If you have not looked at adding coatings to your offering, you are
missing a key piece of the repair and maintenance market that helps
provide steady revenue and funnels leads for new roofing. Contractors
can diversify and shield their business from economic downturns by
providing coatings restoration as part of a proactive maintenance plan.

KS: Contractors looking for an alternative
and increasingly efficient way to apply roofing in various settings
might consider gaining expertise in roof coatings. Roof coatings are the
future and offer a great revenue stream for contractors. Again, the
possibilities in this field are limitless.

PG:
Consider the benefits of restoration versus tear-off. Contractors can
save labor costs by reducing the time on the roof, reducing waste in
landfills, reducing the cost to building owners to cool their buildings
and less stress on their HVAC systems. Training is also key.

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