Top 5 Cities for Opening a Roofing Business
While the housing market fluctuates depending on what state the economy is in, roofing is a business that can offer a degree of stability for anyone willing to put in quality work. Even in the event that the housing market takes a dip, roofing remains a priority. A damaged roof needs to be repaired regardless of the direction the Homebuilders Select Industry index (an important construction industry financial indicator) is going.
If you want to increase your chances of having your roofing business succeed, you need to look at the criteria that will make your venture successful in the space. An important factor to consider is location. Each city has a set of circumstances that can offer advantages or disadvantages. These include things like: size of the city, prices charged, cost of materials, general costs of doing business, cost of roofing insurance, types of houses and overall condition of houses in the area. Even the climate should be included in your thought process. Cities with the type of weather to damage or wear out a roof can mean more business.
That being said, here are the top 5 cities for opening a roofing business:
Seattle, WA
At the top of the list of things a roofing professional would look for when starting a business is profitability. You cannot hope to sustain a business in an environment where the numbers do not support you. Seattle happens to be among the most expensive housing markets in the U.S., offering higher profit margins for roofers. With a climate that sees a lot of rain and cold temperatures, demand for roofing remains high. With approximately two-thirds of houses being constructed prior to 1990, there is no shortage of work. Add to that the fact that Seattle is a growing city, construction is constant and there is great opportunity for landing clients constantly.
Miami, FL
The Miami housing market may not be as expensive as Seattle’s, but the difference is absolutely not prohibitive for a potential entrepreneur. On the contrary, average prices for roofing is even greater than that of Seattle. There is plenty of work and the climate factor that was listed earlier comes into play here. Considering the number of big storms that ravage the State of Florida, there is great demand for roofing after hurricanes. Another plus for an entrepreneur in the space is that being in Miami, there can be swells in demand that a roofing company can cover, from the Keys, all the way up to West Palm Beach. If your business has the means to be mobile over a greater distance, demand can arise in other cities in the State during storm season.
Los Angeles, CA
Los Angeles seems like a less obvious choice to be on this list. The city is more saturated, with regards to the number of businesses that are present in the roofing space. However, the idea that it is such a huge market, coupled with the fact that it boasts one of the highest percentages of houses that are near thirty years old or more, make Los Angeles a good choice for someone getting into the business. Los Angeles, due to its size, offers many niches to target. With a housing market that is more expensive than the national average, profit margins are good for a skilled roofer that is willing to invest in customer care and networking.
Chicago, IL
Chicago is another example of a huge market. Being one of the older cities, in terms of the average age of houses, the demand for roofing is quite high. Ice-cold winters that alternate with moderate springs and summers are a recipe for roof wear and damage. Therefore, if you are looking for a constant stream of work, Chicago is good for that.
Denver, CO
If you are looking for the best of both worlds, meaning, an expanding housing market with a steady flow of repair jobs, Denver is ideal. With a higher average price for roofing services than Chicago, it may be a good alternative for those who would rather not live and work in a very crowded city.
When starting a business, it is important to take all relevant factors into consideration. The sustainability of a roofing business depends on its ability to remain profitable, and profitability depends on things like price, costs, your ability to bring in fresh business leads, and many others. Having said that, roofing is a niche that can provide great opportunity while being more resistant to downturns in the economy than other areas of construction.