The End of Hail Damage Roofing?
“The Fastest Changing Industry in the World”
To better illustrate a point I’m going to tell you a story,
and I want you to tell me if it sounds familiar.
“In the beginning, everyone had a chance. For the first time information traveled at record speed and TONS of people jumped in to share info and sell their stuff.
Then…information OVERLOAD, scams, and back biting set in, and MOST Information was dismissed as WORTHLESS. Finally, leaders emerged and the smartest and the best joined them to create bigger distribution, higher quality, trust and LOYALTY!
Next came CONSOLIDATION. Big players BOUGHT other big players and the rich get richer while the all the little independent rebels who chose to “go it alone” went belly-up in very short order.”
This is actually a quote from the turn of the century-and I don’t mean Y2K. Early 1900′s and the author is actually describing the Newspaper industry.
It started out with really no regulation. Fortunes were made overnight and there were almost zero barriers to entry. There were literally thousands of upstarts all competing for their little slice of the pie. But over time, the party slowly got ruined by con artists,scammers, etc. and the quality suffered.
This led to a bunch of folks getting angry which always leads to
- More government regulation, which squeezes out a lot of the scam artists, but also a lot of the mom and pop operations as well
- Innovation, as the big boys create economies of scale and learn how to do it faster, cheaper, and better, which eventually brings
- Consolidation, which can best be described by this clip:
Eventually, this process leads to what we have today. Most people don’t realize it, but all MEDIA-
magazines, record labels, tv, movies, and newspapers are owned by just 5 massive mega-corporations.
Compare that to the thousands of newspaper companies that existed in the 1800′s. The same holds true for automobiles, retail,
the internet, pharmaceuticals, you name it.

So why should you care?
Well, this process is happening in the hail damage roofing industry as well. We have just gone from the
Wild West lawless Gold Rush days into the-”enough people are fed up with the rampant fraud and shoddy work that the Gubment
steps in starts putting the scammers in jail and the mom and pop operations out of business. Like so:
What Comes Next?
Consolidation. “The Rich get Richer” Outfits that have gotten by with cutting corners in the past are sent out to pasture. For example, bigger roofing companies are able to absorb the cost of a deductible. On the flipside, companies that were able to get work with little or no reputation by being able to offer a “free roof” quickly evaporate and their market share is absorbed by the “big box” operations.
Here’s a quick video on this topic- “The End of Hail Damage Roofing” Part One. In Part Two, we’ll go into the role that technology will play in determining whether your company is one of the haves or the have nots in the months and years ahead. Enjoy


June 18, 2012 
interesting