Roofing Industry Hears from Manufacturing Executives on Supply Shortage

By James Ellsworth, RCS Chief of Staff. 

How past decisions are impacting future sales.  

Last week, we in the roofing industry had an opportunity to hear from seven roofing manufacturer executives from across the U.S. This Telephone Town Hall allowed contractors and members of the roofing industry to better understand the circumstances that have led to the unprecedented material shortages. Moderated by NRCA Chairman of the Board Rod Petrick, the team at the National Roofing Contractors Association (NRCA) did an amazing job bringing together a panel of executives who were able to offer their insights into the current issues. Panelists included: 

• John Altmeyer, executive chairman of GAF Commercial Roofing
• Jamie Gentoso, president of Firestone Building Products
• Josh Kelly, senior vice president of OMG Roofing Products
• Nick Shears, president of Carlisle Construction Materials
• Joe Smith, president of Johns Manville Roofing Systems
• Brian Whelan, executive vice president of SIKA North America
• Trent Cotney, CEO of Cotney Attorneys & Consultants and NRCA general counsel

One of the major takeaways from last night’s Town Hall was that this shortage has been years in the making, starting with the prior administration’s 2018 steel tariffs. These tariffs reduced the ready supply of steel and raised the prices considerably, causing our suppliers to have almost no inventory leading into the coronavirus pandemic that sent the supply chain reeling.     

We also heard that this is not just an issue of manufacturers being unable to buy their raw materials, but transporting them has become a herculean task. The pandemic has shown how fragile our global trade infrastructure is; what used to take seven weeks for a container of steel to make a journey across oceans now takes 24 weeks, almost half a year! Shortages in containers, vessels, skilled labor and supply have devastated our already fragile supply chain. Our ports are clogged and unable to keep up with the demand placed upon them to unload the cargo.    

The waiting line for cargo ships to be unloaded is only exasperated by the entire Gulf region becoming an unreliable location to receive shipments due to extreme weather. The climate crisis is having real and tangible impacts on the roofing industry and causing significant challenges for contractors trying to get the job done. Record flooding, droughts, wildfires, tropical storms and winter weather are only increasing the demand for high-quality, resilient roofs, but we are unable to manufacture the materials and get them to where they are needed at this time.  

The Gulf is also the world’s largest processing center for petrochemicals, a main component in many roofing materials. With the entire region continually being impacted by more extreme weather, our ability to source high-quality chemicals is strained to the breaking point. A contractor from Texas asked a question regarding the practice of “just in time inventory,” which means only having enough inventory to meet the current demand and not retaining any surplus for downturns. He proposed that we in the industry be future minded and attempt to keep a surplus of supply moving forward considering the above challenges likely have no end in sight.   

To this end the NRCA is asking the industry to urge Congress to pass the much-needed infrastructure investment. Lend your voice today by clicking here.

Learn more about the NRCA in their RoofersCoffeeShop® Directory or visit nrca.net.