b'Changing IndustryhandlethevolumethecontractorisDirectly From a Director Continuedstructured for? manufacturer. This shift is significant whenSkill Level - Does the labor force have the multiplied by the minions and millions ofskillnecessarytoworkwithmaterials squarefootageof roofage installedeachcontractedfor? year. Training - Isadequate training to maintain Buyer Negotiating Powerthe skill level in the variety of materials used? Buyer negotiating power has also had an impactthe industry. Based on the surveyProductivity- Isthecontractor ableto~ on results,the roofing industry continues toachievethe productivity necessaryto be bepricesensitive,and,withthecompetitive and remain successful through 1/;;i unconsolidated base ofproper training andmaintainingof skillJay Refieuna,MRCA Director competitors, buyers will continue to have significant influence.level?What 10 words bring a chill to your With the number of contractors currentlyspine? . abeadof sweattoyour inthemarket,andmoreandmoreTheindustryhas certainlybeen throughbrow? .a rapid heartbeat? . clammy competitorsenteringtheindustry,itsome turbulent times, but the key issue forpalms? continues to be a buyer\'s market.thefutureistoretainandtrainyour employees. "Hi, I\'m from the government and Contractors have little influence over priceI\'m here to help." and continuously compete for jobs, creating a significant amountinternal competition.Standing Seam ofItseemsthatinthepastdecade Continued From Page 2government agencies have taken on Internal Competitionanewrolefromhelpfulnessto Therefore,activitiesbythishinderance. Upon quickly thumbing Internalcompetition,thelastofthesubcommitteewillhavetobethrough the local phone directory, I competitivedynamicstobediscussed,watched very closely by the roofingcome across37 separate agencies . continues to-be-f-iei:ce, d1Je-mainJ.y-.-to~thecontrnctorsonASTM,so such-tharaffected my-roofing cmrrpmry -statusof othercompetitivedynamics.documents are not released by ASTMin the past year alone. Now that\'s\'-"" Compet:itionis intensewithpricingofin their present form,thus causingonly on the Federal level.Besides contractsbeingbelowvariablecoststoproblems to the roofing contractorsthem, we also have State and Local maintain volume. There is also a generalapplyir:ig standing seam roof systems.agencies that are "here to help." disorderliness to pricing.Therefore, goodrepresentation by the roofing contractors on the workI\'m not saying that some or all of Thisdescribesinsomedetailwhathasofthissubcommitteeisamusttheseagenciesareallbador happenedintheroofingindustry.Nowbecausethesubcommitteeisunnecessary,but it\'s time that we Jet\'s look at what a contractor can do topresently extremely unbalanced, withexaminewhatrolesthese handlethesechanges.The MRCA studythemajority of the subcommitteedepartments play in our businesses. clearly indicates that a key barrier in themembersbeingmanufacturersofLet\'sexamine justoneofthese future will be labor as opposed to start-upstanding metal roofing.agencies that helps us a great deal. capital as previously discussed. One concern ofmanycontractorsandothersThe following agency was set up for knowledgeableof theindustryisthePrez Sez. the good ofto help the people and availability of qualified labor - not onlythe "Little Guy." But, ifin Continued From Page 2we look as it relates to cost, but, more importantly,the mirror, most of us will see that availability and productivity. A successfulthe bonding companies discover thatthe "Little Guy" is US. roofing contractor will be the one with theyo_u have hundreds ofof thousands most experienced, best qualified and mostdollarsinwarrantyliabilitiesThe Occupational Health and Safety productive labor force. The survey indicatesoutstanding,itcouldreduceyourAct (OSHA) was set up to reduce that contractors who succeeded during thebondingcapacity.Istronglyfeelwork-relatedinjuriesatthe turbulent times were those who concentratedthat roofing contractors should notworkplace/job site. While this is a on labor issues. They were able to achievebe in the warranty business.good and noble agency, and should high productivity and revenues of $90,000help, it doesn\'t do so all that well. or more per employee.IrecentlybuiltanewofficeAlmosteverytimeanOSHA\'-"" warehouseandhaveyettofindcompliance officer visits a job site, Key labor issues which need to be addressedanything in this entire building thatit ends up costing US money. WHY? are:is warranted except the roof. More Availability - Is the work force adequate tolater. Continued on Page 5 Page 4'