We’re in This Together.
If it feels like material prices are climbing again, you’re not imagining it. According to a recent report from Associated Builders and Contractors, construction material costs have increased nearly 10% year-over-year, driven largely by rising energy, steel, and copper prices. These increases impact us here at Marco, just as they do you on the jobsite, so we understand the pressure to keep quality at a high level while striving to deal with rising input costs. That’s why we’ve put together these tips. While you can’t control market conditions, you can take steps to reduce their impact on profitability. Here are five practical strategies to help protect your margins:
- Tighten Up Your Estimating Process. When prices are changing rapidly, estimates based on outdated material costs can quickly erode profits. Review your estimating process regularly and make sure pricing is updated frequently. Consider shortening the validity period on proposals and including language that addresses significant material price fluctuations. The more accurate your estimates, the less likely you’ll be forced to absorb unexpected increases.
- Strengthen Supplier Relationships. Your suppliers can be one of your greatest assets during periods of price volatility. Strong relationships often lead to better communication about upcoming increases, inventory availability, and purchasing opportunities. Knowing about a price increase before it takes effect can give you valuable time to adjust bids, order materials, or communicate with customers.
- Reduce Waste on Every Job. Waste is expensive. Take a close look at how materials are being ordered, stored, and used on the jobsite. Improved measurements, better inventory management, and crew training can help reduce unnecessary waste and protect profits without increasing prices. Even small improvements can add up significantly across dozens of projects each year.
- Focus on Efficiency, Not Just Volume. Many contractors respond to rising costs by chasing more work. But more projects don’t always translate into better profitability. Instead, look for ways to improve operational efficiency. Streamlined. scheduling, better communication, and technology tools can help crews complete jobs faster and reduce costly delays. Industry reports continue to show that contractors who embrace efficiency and technology are better positioned to maintain profitability despite market pressures.
- Sell Value, Not Price. When material costs rise, some contractors hesitate to increase prices. However, competing solely on price can quickly become a race to the bottom. Focus your sales conversations on the long-term value you’re delivering: quality workmanship, proper ventilation, durable materials, energy efficiency, and reduced maintenance costs. Customers are often willing to invest more when they understand the benefits they’ll receive. This is especially true when discussing roof system performance. Components that improve ventilation and help extend roof life can provide meaningful value beyond the initial installation cost.
At Marco, we’re committed to helping you navigate industry challenges with products and solutions designed to support long-term roof performance. While no one can stop material inflation, the right strategies can help ensure it doesn’t stop your business from growing.
To learn more about Marco, visit marcoindustries.com or contact us directly by emailing us here or calling 1-800-800-8590.