Private equity's impact on roofing lead generation

By Jesse Sanchez. 

How industry consolidation is reshaping competition and lead acquisition. 

The roofing industry is facing unprecedented challenges in lead generation, driven by rising costs and heightened competition. In this episode of Roofing Road Trips®, Heidi J. Ellsworth meets with Pam Torrey, director of marketing at Ingage, to discuss how private equity investments and industry consolidation are transforming the market. 

“The elephant in the room is the cost of leads,” Pam stated. “Inflation has hit every aspect of our lives. Lead generation is absolutely no exception because all of the platforms that you generate leads on have to pay their people, they all have to pay for various services. Everything is just more expensive.” 

However, Pam explained that the larger issue is the impact of private equity. “Everyone has noticed that there has been a lot of private equity money floating around in the home improvement industry and specifically in exterior remodeling. I think exteriors have really been hit by this harder than everybody else.”  

This influx of capital has allowed larger companies to dominate lead generation and brand awareness, making it harder for smaller, independent roofers to compete. “Every roofer is now going up against private equity firms, large consolidated companies, companies that have a lot of cash to burn when it comes to lead generation and brand awareness,” Pam noted. “It’s making it harder to get leads. It’s making it more expensive to get leads. It is also making it more challenging to be able to convert those leads.” 

Pam expressed the importance of leveraging community ties to differentiate smaller businesses. She shared, “If you have been in your community for a long time, you understand your customer in a way that a large consolidated company doesn’t. Maybe you’ve sponsored their kids’ T-ball team. You have community connections that everybody else does not have in the market.” 

Read the transcript or Listen to the podcast to learn more about strategies to personalize lead generation and thrive in a competitive market!