Consolidation by the slice: the birth of RoofConnect.

Publication: Roofing Contractor

Publication Date: 01-FEB-03

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COPYRIGHT 2003 Business News Publishing Co.

The word "consolidation" has had its own distinct meaning in the roofing industry for nearly five years. Roofing Contractor has followed the ups and downs of the various individuals and enterprises that have played a part in changing the way the commercial roof contracting business has been conducted ever since our October 1998 issue announced the founding of General Roofing Services.

Actually, the concept had been brewing since March of 1997 when Gregg Wallick began devising a plan to bring together large, commercial roof contracting firms to form a publicly owned company with a national presence. The original concept was envisioned by Wallick's father, Ed Wallick, who dreamed of rolling up contractors on a more limited, regional basis. Owing to a shock to the market for initial public offerings (IPO), General Roofing Services nearly ceased to exist before it ever got started. Private funding and a dogged determination by the founding contractors prevailed and the enterprise became the first of several "roll-up" consolidations of roof contracting firms.

Let's Get Together

Consolidation of construction industry enterprises has been a natural part of the business almost since the business began. Con- solidation in the roof materials manufacturing industry has been fairly routine from the post-war era up to the present. Certain-Teed's meteoric rise to a national presence in commercial and residential roofing products is a recent example of this. Ken Hendricks saw the need and opportunity for consolidation in the roofing materials distribution industry and started a trend 20 years ago with the founding of ABC Supply Co. This trend was widely imitated and continues today.

The Agony and the Ecstasy

Consolidation in the commercial roof contracting field has yielded mixed results over its short life span. There have been sweeping management shake-ups and at least one consolidator has folded its tent. The goals of the various consolidated roof contracting firms have continuously evolved from the very beginning.

Many involved in the consolidation movement held that the roof contracting firms...

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