Rising Oil Prices to Have a Big Impact on Residential Roofing Prices
Tuesday, May 20th, 2008
Jason Westfall asked:
Unless you have been in a cave for the last few months all consumer focus is on the rising oil prices. I spoke by phone this week with William Adams the VP of Abraham Lincoln Roofing based in Upstate New York. Adams states “the roofing industry is currently experiencing extreme price volatility due to whats happening in the oil market. Products for residential roofing are going to make a dramatic increase over the next several months.”
The residential roofing products are made of crude oil byproducts. “Just think of a bundle of shingles as a big block of oil”. With a barrel of oil trading at just over $129 a barrel this week one can only wonder where the roofing market will end up. “I rember a barrel of oil trading at just over $60 a barrel last May and now this week I am being told oil prices will reach $150 a barrel this year because supply isn’t keeping up with demand.
“We are keeping a close eye on the pricing of roofing products. We are not as concerned as some of the smaller roofing contractors because of our large volume purchasing power. We have our prices locked in until mid August”. Adams states that his concerns are a are combination of things. “We are concerned with the cost of gas to run our big trucks, rising liability insurance premiums and where the price of materials may wind up”.
Adams predicts thaty the price of roofing materials will rise by 50% by the end of the year. “There will be no such thing as a cheap roofing system. A roof is going to become a major investment and a consumer had better be sure to choose the right contractor for the job. I asked Adams if that will help or hurt his compaany. “Believe it or not it will help the premium roofing contractors like Abraham Lincoln Roofing because consumers will do the homework necessary before they hire someone with the substantial investment involved.”
Mark
Unless you have been in a cave for the last few months all consumer focus is on the rising oil prices. I spoke by phone this week with William Adams the VP of Abraham Lincoln Roofing based in Upstate New York. Adams states “the roofing industry is currently experiencing extreme price volatility due to whats happening in the oil market. Products for residential roofing are going to make a dramatic increase over the next several months.”
The residential roofing products are made of crude oil byproducts. “Just think of a bundle of shingles as a big block of oil”. With a barrel of oil trading at just over $129 a barrel this week one can only wonder where the roofing market will end up. “I rember a barrel of oil trading at just over $60 a barrel last May and now this week I am being told oil prices will reach $150 a barrel this year because supply isn’t keeping up with demand.
“We are keeping a close eye on the pricing of roofing products. We are not as concerned as some of the smaller roofing contractors because of our large volume purchasing power. We have our prices locked in until mid August”. Adams states that his concerns are a are combination of things. “We are concerned with the cost of gas to run our big trucks, rising liability insurance premiums and where the price of materials may wind up”.
Adams predicts thaty the price of roofing materials will rise by 50% by the end of the year. “There will be no such thing as a cheap roofing system. A roof is going to become a major investment and a consumer had better be sure to choose the right contractor for the job. I asked Adams if that will help or hurt his compaany. “Believe it or not it will help the premium roofing contractors like Abraham Lincoln Roofing because consumers will do the homework necessary before they hire someone with the substantial investment involved.”
Mark
