How acquisitions are shaping the roofing landscape

By Jesse Sanchez.

Exploring the wave of mergers and acquisitions that’s redefining the roofing industry.

In this Coffee Conversations webinar, hosted by Heidi J. Ellsworth, a panel of industry leaders gathered to discuss the growing trend of acquisitions in the roofing industry. The panel included Jason Stanley, CEO of IB Roof Systems; Reid Ribble, former CEO of the National Roofing Contractors Association (NRCA); Brian Whelan of Roof Resources; Ron Harriman of Benchmark; and Ed Krusec of Hunter Panels. Each brought a wealth of experience to the conversation about how mergers and acquisitions are reshaping the landscape of roofing manufacturing, distribution and contracting.

“This has been going on forever in our industry,” said Jason, whose company was recently acquired by Kingspan. Jason shed light on how private equity, international companies and market dynamics are driving a surge of deals across all segments of the industry, “It’s always been a part of our industry, whether it was a roll up or acquisitions on the contractor side, whether manufacturers were looking to vertically integrate. This has been happening for a long time, but it seems like the pace has really picked up in the last … it seems like the last five years.”  

Reid explained the financial forces fueling this consolidation. “There’s so much investment money out there right now that some estimates show the private equity space has got over three trillion dollars of dry powder,” he said, referencing uninvested capital. “They’re chasing roofing contractors, roofing distributors and roofing manufacturers everywhere they can find them.”

While this wave of acquisitions presents opportunities for growth, it also raises questions about how businesses can adapt. Jason Stanley shared how his company’s alignment with Kingspan offered a strategic path forward. “The roof membrane, for my whole life, has always been the cost driver. Today, insulation is two, three, four times the cost in different roof assemblies,” Jason explained. “If we want to compete on large projects and we want to grow our brand and our business, being vertically integrated in insulation makes sense.”

The panelists agreed that contractors and consultants should focus on flexibility, preparation and relationship-building as the market continues to evolve. Ron shared, “You will never regret being well-prepared."

Read the transcript, Listen to the podcast or Watch the webinar to learn more about how acquisitions are reshaping the roofing industry!