Building Connection Summer 2016

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3 0 BUILDING CONNECTION SUMMER 2016
the growth of the “super” builders like Simonds, Henley,
Metricon etc. who have now become national players and
who have developed around 60% of the new smaller builders
who cut their teeth at one of these companies. These guys
knew what prices they were paying for products and when
they moved or started on their own they expected the same
rates.
The biggest issue in the southern states is the domination
of the roofing industry by roof tiles. Roofers can afford to
accept minimal margin on a lead in product like fascia and
gutter if they also get the roofing to balance it out but no
one can afford to take that kind of a hit if the roof is tile.
BlueScope has been looking at ways to raise the
percentage of metal roof installs in these southern states
but have been fighting a winless battle. Over the last 10
years all of the major roof tile manufacturers have tried to
buy or develop their own fascia and gutter companies and
these massive conglomerates with all of their resources
have failed or walked away... why? Because there is no profit
in it, but we, the roofing companies, allow it to continue
without raising the prices of metal fascia and gutter.
For a start, if a roofer is installing metal fascia and gutter
on a house with a tile roof, the price should be 30% higher
than for a metal roof and there are three reasons why:
1. Tiles are so much heavier and result in more maintenance
2. When you are doing the roof you have more visibility on
the job and can rectify any issues before finishing it
3. Because you can.
This is what the calculations could/ should look like:
(Please See Table 3)
As I write this we have just received notification that
BlueScope is raising its rates again in October/ November
by 5.5-7.6%. Installers cannot continue to absorb these
increases and if they do, the likelihood of them becoming
insolvent is very high. And to be honest, it’s very neglectful
to their customers, the builder, the builder’s customer,
the home owner and the industry as a whole because
there are installers out there who are either unaware of
this happening or cutting corners to stay profitable and
installing an inferior product. When these products fail, and
TABLE 3 - WHAT COLORBOND F&G SHOULD BE
COLORBOND FASCIA & GUTTER (BASED ON AVG 80 L/m)
PRODUCT QUANTITY PRICE PER PRICE PER L/m
Colorbond
Fascia 80 $4.50 $4.50
Colorbond
Quad 80 $4.50 $4.50
Rafter Bracket 133.33 $0.80 $1.33
Stiffiner 88.89 $0.80 $0.89
Spring Clip 88.89 $0.80 $0.89
Apex Spacer 88.89 $0.25 $0.28
Internal Fascia
Plate 2 $2.65 $0.07
External Mitre 6 $3.70 $0.28
Barge Mitre 2 $3.70 $0.09
100 x 50 Pop 7 $2.19 $0.19
Cast Angle 10 $10.96 $1.37
Stop Ends 2 $2.51 $0.06
Silicone 1 $4.30 $0.05
Riverts 200 $0.09 $0.23
Bugle Screws 400 $0.02 $0.03
Labour 1 $7.00 $7.00
Supply and Install Cost Per M2 $21.76
Overhead of 15% $3.26
Supply and Install Cost Total Per L/m $25.03
Sell to customer per Lineal meter $35.04
Standard Profit per lineal meter based on
install rate of $27.00l/m $10.01
Profit percentage per lineal meter based on
install rate of $27.00l/m 40.00%
Contact:
Peter knows his metal roofing with 20 years of experience
in design, manufacture and installation. He is the general
manager of Johnson Roofing, which supplies and installs
metal roofing to projects throughout Victoria. Peter is also
currently the director of the Residential Metal Roofing
Industry Association of Victoria.
If you have any questions:
they will, they will not be there to fulfil the warranty and the
insurance company will have to foot the bill.
I believe that the building industry has changed so much
over the last 30 years, as has the society we live in, and the
product/service we deliver should be improving, rather than
declining and we need to make it attractive for people to
want to join our industry. It makes no economic sense to join
an industry that doesn’t safeguard its own future though.
THE BIGGEST ISSUE IN THE
SOUTHERN STATES IS THE
DOMINATION OF THE ROOFING
INDUSTRY BY ROOF TILES.
METAL ROOFING 101
PETER COLL