What gets measured, gets done

For many roofing contractors, labor is the largest cost of doing business. Payroll, benefits and training often seem like unavoidable expenses that cut into profit margins. As a result, contractors tend to focus on controlling labor costs and wages and maximizing time on job sites.

But what if the script was flipped? Instead of viewing labor as an expense to be minimized, what if it were viewed as an investment with the potential for a significant return? The truth is your workforce isn’t just a cost; it’s the engine that drives your revenue. And like any investment, the more you optimize it, the greater the return.

By measuring workforce performance in key areas such as revenue per crew, efficiency and project quality, you can unlock hidden profit potential and may find new ways to improve productivity, reduce waste and increase overall profitability.

Traditional view

Payroll, insurance, training and employee turnover add up, making labor seem like a liability rather than an asset. To control costs, many companies take a short-term approach—hiring the cheapest labor available, minimizing training investments and focusing on reducing expenses.

But this mindset can be costly in the long run. A workforce seen primarily as an expense often leads to:

• Lower productivity: Untrained or underpaid workers take longer to complete jobs.
• More rework and callbacks: Lack of training leads to costly fixes, damaging customer trust and profit margins.
• Higher turnover: If employees don’t believe they are valued, they leave, creating a cycle of hiring and training replacements.

Companies stuck in the “labor is a cost” mindset often struggle to scale because they’re focused on minimizing expenses instead of maximizing the workforce’s potential to generate revenue.

A shift in mindset

Successful roofing companies look at their workforces as opportunities to measure and refine the ability to generate income. They track productivity, efficiency and quality and identify opportunities for improvement and investment.

For example, instead of asking “How can we cut labor costs?” they ask:

• How much revenue does each crew generate per week or per job?
• What is the average revenue per installer?
• How can we increase the efficiency of each worker?

By shifting the focus from reducing costs to increasing productivity and revenue, companies start making decisions that improve profitability. They invest in training, provide better tools and create incentive programs—all of which can drive greater returns.

Measuring workforce performance leads to better business decisions. If you know which crews are the most efficient, which workers need more training and which areas have the greatest profit leaks, you can take action. And when you take action, you turn labor from a cost into a competitive advantage.

Key metrics to measure

To fully understand the revenue potential of your workforce, you need to measure the right numbers. There are many key performance indicators roofing contractors can track, such as labor efficiency ratio, project completion time, customer callbacks and employee retention. Each of these metrics plays a role in improving overall efficiency and profitability.

But the two numbers every roofing company owner should focus on are revenue per crew and revenue per installer. These two metrics reveal the true income potential of your workforce and help shift a company’s mindset from seeing labor as an expense to recognizing it as a revenue-generating asset.

Revenue per crew

This metric helps you understand how much revenue each crew is producing. By comparing different crews, you can identify top performers, spot inefficiencies and implement best practices across all teams.

Formula:

Total revenue ÷ number of crews = average revenue per crew

Knowing this number allows you to make comparisons and, ultimately, better decisions about scheduling, crew sizes and job efficiency.

Revenue per installer

Most roofing contractors are shocked when they realize how much revenue each installer generates. During NRCA workshops when roofing business owners calculate this number, they typically find each installer is responsible for generating $230,000 to $300,000 per year.

Formula:

Total revenue ÷ number of installers = average revenue per installer

Although $230,000 per installer is a solid industry benchmark, not every installer is trained to handle the full scope of production details that make him or her truly valuable.

When NRCA workshop participants were asked how effective untrained installers were, contractors estimated only 10% were effective—reducing the installer’s revenue contribution to $23,000 per year. This means for every year an installer’s talent goes undeveloped, your company could be losing $207,000 of potential income ($796 per day).

When business owners understand these numbers, they begin to view training and workforce development as a high-return investment. The sooner you upskill an installer, the sooner the installer reaches his or her full revenue potential, increasing earnings and your bottom line.

By focusing on revenue per crew and revenue per installer, roofing contractors can make smarter, data-driven decisions that lead to higher profitability. Once you begin tracking these numbers, you’ll start seeing your workforce not as a cost but as your company’s most valuable asset.

Turn measurements into action

Once you understand the income potential of your workforce, the next logical step is to take action. If an untrained installer is resulting in lost revenue, the solution is clear: Invest in training, certification and structured career pathways to unlock full productivity.

PROCertification® benchmarks

One of the most effective ways to track and improve installer performance is to use NRCA PROCertification tools, such as the Job Task Analysis that provides clear, measurable benchmarks for evaluating an installer’s skill level. By tracking progress against these industry-recognized standards, you can ensure your workforce is trained, efficient and meeting professional installation standards.

With a structured approach to skills development, you can:

• Identify gaps in installer skills and provide targeted training
• Set measurable goals for workforce improvement
• Ensure higher-quality installations, reducing callbacks and rework
• Increase workforce efficiency, allowing crews to take on more jobs

Partner with local CTE schools

Another strategy is to develop relationships with career and technical education programs in your area. These schools are full of students eager to enter the trades but who may not know about roofing as a career option.

A great way to bridge this gap is to reach out to your local CTE school and offer to integrate a roofing curriculum alongside existing programs, such as carpentry. The National Center for Construction Education Research and NRCA have developed comprehensive curriculum options ready for hands-on roofing training.

By collaborating with a CTE school and incorporating roofing into the curriculum, you can:

• Expose students to roofing as a viable, high-earning career path
• Teach essential skills before employees step onto a job site
• Identify top-performing students and funnel them directly into your company
• Reduce hiring risks by bringing in pre-trained talent

Create career pathways

Once you’ve trained your team, the next step is to keep them engaged. Skilled workers are in high demand, and without a clear career pathway, they often look elsewhere for better opportunities.

A structured career pathway includes:

• Apprentice to certified installer: Establish milestones for skill progression; you can use PROCertification as a roadmap.
• Crew leader development: Train high-performing installers to take on leadership roles as foreman or superintendents.
• Production management training: Provide a path for experienced roofing workers to move into operations and management.

By investing in training, certification and career development, you will stop losing income potential and start creating a stronger, more profitable and more loyal workforce.

Proof in the numbers

The effect of training and workforce development isn’t theoretical—it’s happening now, and it’s transforming roofing businesses.

Consider the following real-world example of a roofing contractor who was awarded a large government contract.

It was a massive opportunity for his business, but there was one problem: The contractor didn’t have enough skilled labor to fulfill the job. Instead of turning down the project or scrambling to find untrained workers, he took a proactive approach that paid huge dividends.

He reached out to his local CTE school and proposed a partnership. Using NRCA’s Training for Roof Application Careers program, he introduced students to roofing and brought 10 of them onto the job site to help complete the project.

By the end of the project, three of the students proved to be highly capable, and he hired them full-time. Unlike brand-new hires with no experience, these students already had developed essential roofing skills, making them productive from day one.

Now, let’s work the numbers:

• The industry average for revenue per installer is between $230,000 and $300,000 per year.
• By funneling three skilled students into his workforce, the roofing contractor effectively added $690,000 to $900,000 of income potential to his company—without the steep learning curve of untrained hires.

These employees will continue to increase in value as they receive further training and certification, maximizing their revenue-generating potential.

Nothing to lose

Roofing businesses that embrace training, certification and structured career pathways will be the ones that win more jobs, retain skilled workers and significantly increase their profitability.

The question is no longer whether you can afford to invest in training—it’s whether you can afford not to?

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