High Gas Prices Hit Roofing Construction Hard—And in More Ways than Just Fuel

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Rob

The nation currently faces record-high gas prices; some construction companies feel the pain a little worse than others. For example, in El Cajon, CA, diamond Roofing faces prices above $6.00 a gallon.

"Everyone knows shingles," Diamond Roofing Owner Fred Marion said. "Asphalt-based shingles, they're made with oil."

Increased gas prices add 5% to 10% in expenses to his bottom line.

"It's getting worse by the day," Marion said. "It affects us tenfold. We're paying more fuel costs for our 20-25 trucks. Our suppliers, our vendors of roofing materials, they're raising their prices."

Marion thought prices would neutralize with the ebb in COVID cases. Still, he says he can't accurately job-cost contracts.

"I think they needed to, because Russia invading Ukraine is not a good thing," he said. "But if I look at it as a business owner, I think it's hard because now they shut off that streamline, so now it's only going to drive our prices up even more in the oil, so it's like it's a catch-22."

The California governor supports a gas tax rebate; this could help stem the bleeding but might not be enough to cover the costs.

Diamond Roofing Sales Manager Rachelle Laws told Fox 5, San Diego, "You appreciate the governor trying to do something to kind of help, but at the same time you kind of want to say, 'OK, well why aren't we just using our resources and using our own oil?'"

Marion says that he thinks he can absorb the costs by cutting marketing and employee bonuses, but he is again worried about lay-offs.

Amid rising gas prices, construction companies lead the pack in feeling the pinch.

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