If the roofing industry had referees, they would have been throwing penalty flags
all year—for unnecessary roughness.
First, of course, there was the economy, which came to a screeching halt for our
industry during late 2008. The industry consensus was that the total market was
down about 30 percent for calendar year 2009—some regions were better or even worse
than that—as credit markets tightened and cash became more coveted than ever.
New housing starts totaled 544,000 in 2009—down more than 70 percent from their
peak in 2005. Imagine the consequences of any industry being down 70 percent and
you get a snapshot of how things were.
We also had a re-invigorated government developing sweeping new legislative and
regulatory proposals during a severe recession. We now have a national health care
program, are debating significant changes to our energy policy and once again are
addressing immigration reform. Meanwhile, our friends in the regulatory arena were
developing new rules for lead paint removal, fall protection and musculoskeletal
injuries, among other issues. We are just beginning to feel the effects of these
new rules.
Additionally, marketplace dynamics changed as economic stimulus money wound its
way through the system. Many NRCA members forayed into government contracting for
the first time as the world's largest property owner (yes, our government) started
spending.
And the marketplace became even more complicated as contractors, designers and owners
sorted through an array of new energy-efficient and environmentally friendly roofing
products. These included systems developed to accommodate rooftop vegetation and
rooftop photovoltaic (PV) systems as building codes continue to require more roof
insulation.
A relatively high unemployment rate eased the industry's concerns about finding
new workers, but a renewed emphasis on tightening immigration rules made it more
difficult for members to find legal immigrant workers, who make up nearly half of
the industry's work force. As the economy recovers, we can expect the work force
issue to once again rise quickly to the surface.
Through this turmoil, we remain an industry of optimists—and with good reason. A
majority of roofing work performed in 2009—some surveys suggest more than 80 percent
in some markets—was repair and replacement. That is a market that will remain and,
in fact, only will improve as owners find credit markets loosening and realize they
no longer can defer reroofing decisions.
In addition, we will continue to be beneficiaries of the green building movement,
which has established itself as more than a fad. Higher R-values generate short-term
paybacks; vegetative and rooftop PV systems play a significant role in improving
the environment and reducing the U.S.' dependency on foreign oil. Technology only
will improve, and as energy costs continue to rise, investments in sophisticated
roof systems will make more sense.
And while the industry was struggling through this massive change, your association
managed to have a good year. NRCA added new members at a near-record pace; continued
to be a force in the building codes and standards community; played an increasingly
large role in Washington, D.C.; and continued to reach thousands of its industry's
stakeholders—and customers—every day through various publications and an enhanced
website.
As we approach our 125th year of continuous service to the roofing industry, we
are reminded that as much as things change, we are blessed with some constants,
including a dedicated group of volunteer leaders who serve tirelessly. This year
was no exception. NRCA President Rob McNamara led with skill and grace and deserves
your enduring thanks.
Another constant is having a dedicated staff. There are 50 people who work for you
on a full-time basis and have worked harder than ever during the past year. We could
not possibly be where we are without them.
As we look forward to the new NRCA year, we expect to see fewer penalty flags and
a lot more offense. The industry is poised for great things. It should be a fun
ride.
Sincerely,
Bill Good
NRCA Executive Vice President