Roofing rollup: roofing is not the most glamorous business. But when you successfully create the largest commercial roofing company in the US, and then make it work, well, who cares about glamour? - Construction

South Florida CEO, August, 2002 by Scott Singer

Most companies don't think about their roofs until after the leaks begin. But Fort Lauderdale-based generalRoofing hopes to change the way companies think about that slab of concrete overhead. In fact, CEO and president John Larimer expects 15 percent of the company's revenue this year to come from its roofing maintenance business.

For generalRoofing -- the US's largest commercial roofing contractor -- that adds up to almost $43 million of this year's projected $285 million in sales. That should supplement generalRoofing's traditional construction business, and keep its 2,800 employees busy.

"Even the best installed system has Mother Nature that works on her, and then you have water coming in," Larimer says. Offering maintenance deals to clients not only precludes a surprise shower, it also gives the company a steady stream of income, whether there is demand for new construction or not.

While generaiRoofing's maintenance contract program represents an industry innovation, it's not the most revolutionary part of its business. For that, you need to look at the company itself. In an era when rollups have fared poorly -- Fort Lauderdale-based Gerald Stevens' failed attempt to consolidate the flower industry, for example, or Miami-based Unicapital's botched consolidation of leasing companies -- generalRoofing has broken the mold.

The company was founded in 1998 when 13 local roofers from around the country, with a total of 26 locations, joined together to form a single entity. Larimer, who expanded generalRoofing to its current total of 32 locations, was brought on two years later to turn what he describes as a "loose confederation" into a truly integrated business with a common mission. That mission: provide consistent service under one national brand for roofing all commercial structures, from malls to factories to apartment buildings.

Mike Russo, associate publisher and editor of industry publication Roofing, Siding, Insulation magazine, says that becoming the nation's leading roofing contractor was a major accomplishment, largely due to the industry expertise of generalRoofing's management team. "It is a challenge being a consolidator," says Russo. "generalRoofing is up to the task."

And, being national has paid off. In a category where most competitors are local, the strategy allows generalRoofing to deliver what Larimer calls "same customer experience" across the country. It also allows him to shift resources and draw upon a wide variety of experience to deal with unique situations. The size and scope of generalRoofing, for example, means the company can install and service roofing systems from every major commercial roof manufacturer in the US, without violating factory warranties.

"I like the ability to have a centralized person to deal with for new bids, projects, and problems," says Neal Hesler, vice president of real estate investment trust AMB Property Corp., which owns 1,000 buildings across the US. "[They're] all working off the same sheet of music." Hesler has been a major customer of the company's inspection, maintenance, and re-roofing work for "big box" properties since 2000.

Larimer expects 2002 revenues to grow $2 million over 2001's $283 million. While that growth may appear unimpressive, Larimer considers it a win in a recessionary market for his manufacturing customers. Much of the sales increase over the past two years can be credited to an aggressive sales force, which includes Larimer, who previously had been vice president of worldwide sales for Indiana-based Firestone Building Products. At generalRoofing, he spends up to 25 percent of his time developing new accounts, backing up the sales team, and working on vendor relationships.

With an MBA from Emory University, Larimer calls himself a "conservative risk taker," both professionally and personally. He once drove his Harley-Davidson motorcycle 850 miles in an informal race across Baja, Mexico, and recently became open-water-dive certified. "Risk is manageable if it's focused," he says. "It will push you further."

With generalRoofing moving past the challenge of integration, Larimer says his toughest task now is to create a more customer-focused corporate culture.

"Everybody understands that's important, but making it a way of life is a big challenge," he says -- as is maintaining the industry top spot. "Never let up even when you're the best," he says. "That's the danger, thinking that you're good enough."