Why Do So Many Roofing Businesses Fail… and How Tariffs Are Making It Worse
At Impact Roofing, we’ve seen firsthand how some roofing companies struggle to survive—and tariffs are now adding fuel to that fire. Understanding the root causes can help our clients—and peers—take proactive steps to protect both quality and stability.
1. Cutting Corners and Poor Workmanship
Many roofing companies are eager to offer low quotes, but the result is often cheap materials, sloppy installation, and poor clean-up. This leads to callbacks, repairs, and ruined reputations faster than you’d expect.
2. Underestimating Operational Costs
Some firms fail because they ignore the true cost of doing business—insurance, licensing, overhead, training, and quality assurance all add up. If not priced correctly, even well-meaning businesses can be outpaced by unexpected expenses.
3. Staffing Woes and Labor Shortages
Roofing is labor-intensive—and increasingly so. Skilled roofers are hard to find and expensive to retain. Without strong crews, timelines slip, quality drops, and customer satisfaction suffers.
4. Cash Flow Breakdown
Projects can stall when payments are late or materials are delayed. A single lingering receivable can tie up the resources needed to complete new jobs—and put a company on a dangerous financial trajectory.
5. Tariffs: The Rising Tide That Lifts No Roof
A Perfect Storm of Cost Pressures
Tariffs on essential roofing materials—such as steel, aluminum, copper, and lumber—have surged in 2025. These hikes are putting real pressure on contractors:
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Titanic material costs: A 50% tariff on steel and aluminum, and a 50% tariff on copper imports—from August 1, 2025—are causing metal components to see price surges as high as 60% Kam Roofing Services+10Ramcon Roofing+10Colony Roofers+10Beaumont Enterprise+4Wikipedia+4Roofing Contractor+4.
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Wide-ranging impact: Asphalt shingles, fasteners, and flashing now also cost more, as many raw materials are imported and subject to new duties Roofing Detroit+2Bachman’s Roofing+2.
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Volatile bidding: With costs shifting fast, contractors often scramble to adjust quotes mid-project, frustrating both builders and homeowners Roofing ContractorDrew RoofingOffDeal.
Impact on Roofing Businesses
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Shrinking profit margins: According to a JW Surety Bonds survey, 70% of home contractors, including roofers, say tariffs are crippling business, and nearly 60% have had to raise prices to keep up Kam Roofing Services+10Investopedia+10YouTube+10.
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Market uncertainty: Developers and contractors are delaying or scaling back projects due to unpredictable pricing and supply disruptions Business Insider+1.
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Distributor stress: Beacon Roofing Supply cites tariffs—and labor snaps—as headwinds, though they remain optimistic. Still, even industry leaders are feeling the pressure Bachman’s Roofing+3MarketWatch+3YouTube+3.
Bottom Line
Tariffs don’t just raise prices—they destabilize the entire supply chain. Contractors face material delays, surprise cost surges, and pressure to absorb or pass on these costs. For smaller roofing businesses already operating on tight margins, this creates a hazardous environment.
How Impact Roofing Is Responding—and How You Can, Too
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Supply Chain Agility
We’re building relationships with multiple suppliers, including domestic sources, to ensure price stability and buffer tariff shocks. -
Transparent Bidding with Tariff Clauses
Our contracts now include tariff adjustment provisions—clear, fair, and designed to keep projects on track even as prices evolve. -
Efficient Operations & Skilled Teams
We invest in training and quality tools, so jobs go smoothly on time—minimizing waste, rework, and delays that erode profit. -
Proactive Financial Management
We use real-time cost tracking and strong search capabilities to ensure quotes remain accurate, and cash flow stays healthy. -
Educating Clients
We communicate the why behind pricing changes. When homeowners or developers understand the impact of tariffs, they’re more likely to stay supportive—even when costs shift.
Final Thoughts
Roofing is a tough business—too tight a quote, a single delayed delivery, or a wave of tariff hikes can sink even the most seasoned contractor. At Impact Roofing, we believe in building not just roofs—but trust.
By combining craftsmanship with smart financial planning and transparent communication, we’re not just weathering the tariff storm; we’re thriving—and helping our clients sleep better under the roof they just invested in.
