Colorado Springs Roofers and Price Increases
Colorado remodeling industry and Colorado roofing industry have experienced labor shortages for a long time. A strong demand in the housing market in Denver and Colorado Springs has already reduced the number of available roofers. Now that the largest storm in our history has hit things are going to really be interesting for roofers in Colorado Springs. I’ve been in this industry for decades and this is the most volatile roofing environment that I’ve ever been in. The recent labor price increases in Colorado Springs, Colorado are creating chaos in the roofing industry. I’ve never seen anything like this and I’ve been in the insurance restoration industry for decades. Colorado Springs roofers will have no shortage of work, but it’s not going to occur without headaches and price increase. Many roofing companies in Colorado Springs will do one years worth of work in four months. The larger companies will perform 2-3 years worth of work in 4 months. Integrity Roofing and Painting, LLC is installing up to 12 roofs per day during the aftermath of the largest storm in Colorado Springs history. We’re aware of another contractor roofing Colorado Springs at a rate of 20 homes per day. The headaches are coming and have already occurred and one of the biggest issues is skilled labor. We are fortunate to have incredible teams of skilled roof installers, however we had to increase our prices due to outside pressures. Let me share a little history first.
Around 1998 we had five prices in approximately six months. This was due to oil prices at the time and I thought it was crazy. I’ve worked in the after math of hurricanes and hailstorms and I’ve seen roofing labor prices spike after these storms. As a matter of principle I refused to pay these unnecessary spikes in labor. This storm is different I had no choice, but to pay all of our roofing crews additional funding to match the offers from competing roofers in Colorado Springs. The industry has changed because of the shortage of construction workers and there is nothing that anyone can do.
I love our free enterprise and that we have few barriers in economics. Don’t get me wrong this is awesome, but chaos can ensue. Out of town roofing companies that are better known as storm chasers are pursuing local installers and are paying up to 35% higher rates than the traditional local market could pay, but that was before the storm. Local roofing companies were shocked when overnight we were forced to pay $500-$1,000 more to roof a home. There are going to be a lot of happy construction workers before years end. Overnight these men received a 35% pay raise. That’s one heck of a pay raise and it occurred only because of supply and demand.
Colorado Springs is in the aftermath of the large hailstorm in our history and I am thankful that roof installers have risen to the occasion. The price increases are part of the equation and everyone has to share in the expense. The insurance companies are aware of the price increases and have adjusted pricing to match present day fair market value. The number one software in the insurance restoration industry is Xactware. Integrity Roofing and Painting, LLC has implemented this software for pricing all roofing projects. We’ve been using this software for almost a decade now. At one time in our journey we hand wrote estimates and created our own pricing system for estimating jobs. Xactimate is a great product when all roofing components are included in the scope than the price is representative of fair market value, with the exception of smaller roofs which require a surcharge for mobilization.
Colorado Springs roofers have adjusted prices according with supplier and labor increases. Today in May of 2017 there is still a work load of roofs that are being replaced from last years historic hailstorm. This is a good time to have your roof replaced.