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Posted by Jason Bush No Comments on Is Now a Good Time to Replace Your Roof? Metal Roofing

Is Now a Good Time to Replace Your Roof?

Everyone who buys groceries, gas, or other commodities knows that inflation has made the costs of these goods soar. The same can be said about the roofing industry, as construction material prices rose another 1.9% in June, up 20.1% over June of last year1. Most notably, crude petroleum and natural gas prices continue to spike, key components in manufacturing asphalt shingles. Due to several factors effecting the global supply chain, it is uncertain when material prices will begin to decline. However, the global construction consultancy firm, Linesight, Q1 Commodity Report states that “Despite the anticipated stabilization of materials costs, due to ongoing global issues, 2022 is expected to be another challenging year for the construction industry that will bring with it many disruptions, both in the supply chain and in the overall productivity of the industry2

The Consumer Dilemma

If you are a home or business owner with an aging or failing roof, there are several choices you can make:

  • Do Nothing – Doing nothing is always a choice, but rarely the best one. Failing to address a failing roof will likely result in interior leaks, deck damage, and much higher costs once the roof is finally replaced.
  • Repair and Wait – Seeing the inflated roofing material prices, it may be tempting to try and delay a costly roof replacement until prices come back down. However, similar to the “do nothing” option, you risk roof leaks and damage, while spending money on temporary repairs. While this strategy might pay off, you are still investing money in a roof that will have to be replaced, which offers little return on investment.
  • Replace the Roof – Despite the higher material prices, which are expected to continue for the near future, you can go ahead and replace the roof. This eliminates the worries of interior leaks, deck damage, and other issues, but requires a significant investment.

Making A Smart Financial Decision

If you are choosing the “Replace the Roof” option, selecting a long-term roofing system can help mitigate the higher material costs. Consider the following scenario, over a 40-year period:

Option A: Replace the roof with asphalt shingles

Initial Cost (pre-inflation): $10,000
2022 Inflation Cost (20% added): $12,000
Average Service Life3: 15 years
Added Cost of Inflation Per Year: $133.33 ($2,000 + 20%)
Average Cost of Roof Per Year: $800 ($12,000/15 years)

In year 16 and 31, you will need to replace the asphalt shingle roof, at a significantly higher cost

Option B: Replace the roof with a premium metal roofing system

Initial Cost (pre-inflation): $20,000
2022 Inflation Cost (20% added): $24,000
Average Service Life4: 40 years
Added Cost of Inflation Per Year: $80 ($4,000 + 20%)
Average Cost of Roof Per Year: $600 ($24,000/40 years)

In this example, you can see the financial difference between investing in an asphalt shingle roof and a premium metal roof. Even if you only consider the initial roof replacement, disregarding the necessary replacements of the shingle roofs, you can see both the average cost of the roof per year and the cost of the current inflation greatly favors the metal roof option. If you add back in the subsequent roof replacements, metal roofing becomes an even better financial decision.

Conclusion

The current economic conditions causing the inflation on construction material prices are unlikely to dissipate in 2022 and could last far into 2023. If you find yourself in need of a new roof, you have several options you can choose from. However, replacing your roof with a long-term solution, like metal roofing, reduces the financial cost of the inflated materials, while providing over three times the service life. While no one likes to pay inflated costs for a product or service, you can prevent additional costs for interior damage, rotted decking, and structural issues by not waiting too long to replace a failing roof.

1 “Construction material prices are 20.1% higher than a year ago”, National Roofing Contractor Association, June 2022

2 “Linesight’s Commodity Report Shows Volatility in Construction Material Prices to Remain in 2022”, BusinessWire, April 28, 2022

3 “Comparing Roof Types”, Metal Roofing Alliance, https://www.metalroofing.com/residential-metal-roofing/comparing-roof-types/

4 “Comparing Roof Types”, Metal Roofing Alliance, https://www.metalroofing.com/residential-metal-roofing/comparing-roof-types/