John Kenney, CPRC, CEO, Cotney Consulting Group - July 2026
For most roofing contractors, a strong backlog is a welcome sight. It means work is sold, crews are busy and revenue is coming through the door. After all, most companies spend a great deal of time worrying about where the next project will come from. When the schedule is full and opportunities continue to arrive, it is easy to assume everything is headed in the right direction. Over the years, however, I have seen contractors grow themselves into trouble more times than I can count.
The irony is that some of the most difficult periods a roofing company will face occur when business is good. Not because work is unavailable but because growth places demands on an organization that are often underestimated. What got a company to five million dollars in revenue may not be enough to support ten million. The systems, communication, leadership structure and operational discipline required to handle increasing volume do not automatically grow with the business. A full backlog creates confidence but sometimes it also creates a false sense of security.
Many contractors focus on their ability to produce work. They look at crew counts, available equipment and open calendar dates. If those resources appear available, they assume they have the capacity for additional projects. In reality, capacity extends far beyond the field.
One of the biggest mistakes I see is what I refer to as false capacity. On paper, the company appears capable of taking on more work. In practice, the support structure behind that work is already stretched thin.
The project managers are carrying more jobs than they should. Estimators are rushing bids just to keep pace with demand. Accounting is struggling to process billing and collections efficiently. Warehouse personnel are managing increasing material volume. Superintendents are covering more projects than they can properly oversee. Safety managers are spending less time on individual jobs because there are simply too many places to be. The company still appears healthy from the outside. The backlog is strong. Revenue is increasing. Yet the warning signs are already present.
Growth has a way of exposing weaknesses that may have gone unnoticed for years while the workload remained manageable. Communication gaps become larger. Small operational inefficiencies become expensive. Delays that once affected a single project begin impacting several at once.
Scheduling is often where these problems first become visible. Every roofing contractor understands that schedules are fluid. Weather changes. Material deliveries move. General contractors adjust timelines. Building owners change priorities. Those challenges are part of business. The problem occurs when a company has no room to absorb them.
When the backlog is packed tightly and every crew is scheduled at maximum capacity, even a minor disruption creates a ripple effect. One delayed project pushes another. Crews are reassigned. Material deliveries are adjusted. Project managers spend their days rearranging schedules instead of managing production. What appeared to be efficient planning quickly becomes reactive decision-making.
The pressure does not stop there. Labor challenges become more pronounced during periods of rapid growth. Most roofing contractors continue to face workforce shortages and a growing backlog often accelerates the problem. The need for people increases faster than the availability of qualified workers.
To keep pace, companies frequently promote individuals into leadership roles earlier than they otherwise would. Sometimes that works well. Sometimes it creates challenges that take years to correct.
Being a skilled installer and being an effective foreman are not the same thing. Being a productive foreman does not automatically prepare someone to become a superintendent or project manager. Leadership requires communication skills, organization, decision-making and accountability. Those skills take time to develop.
When growth forces advancement faster than development, cracks begin to appear. Productivity varies from crew to crew. Documentation becomes inconsistent. Customer communication suffers. Rework increases. The company may still be generating strong revenue but operational control begins to weaken.
Subcontractor utilization often increases during periods of rapid growth. Many contractors turn to subcontract labor to help satisfy demand. There is nothing inherently wrong with that strategy but it introduces additional complexity. Every subcontractor relationship requires management. Quality expectations must be clearly communicated. Safety standards must be enforced. Scheduling coordination becomes more difficult. Documentation requirements must be followed. The larger the subcontractor footprint becomes, the greater the need for oversight. Unfortunately, oversight is often the very thing that becomes scarce during rapid growth.
Financial performance can become equally deceptive. One of the most common conversations I have with roofing contractors centers around revenue. Companies are understandably proud when annual sales increase. Growth is often viewed as the primary indicator of success. The reality is that revenue can hide a lot of problems. As volume increases, so do payroll costs, material purchases, equipment expenses, insurance costs and administrative overhead. Accounts receivable often grow alongside sales. Contractors may be producing more revenue than ever while simultaneously experiencing cash flow pressure they have never faced before.
A large backlog filled with low-margin work creates just as many headaches as a small backlog. In some cases, it creates more. This is why disciplined contractors focus on profitability and operational performance, not simply volume. They understand that every additional project places demands on the organization. If those demands are not supported by proper systems and leadership, growth becomes increasingly difficult to manage.
The strongest companies I have worked with share several common characteristics. They understand their true capacity. They know how many projects their project managers can effectively oversee. They know how many crews their field leadership structure can support. They understand the limits of their administrative and accounting teams. Most importantly, they are willing to say no. That is often the hardest discipline of all.
When opportunities are abundant, turning down work feels counterintuitive. Yet not every project is worth pursuing. Some projects create more strain than value. Some customers consume disproportionate amounts of time and resources. Some opportunities pull a company outside its strengths and expertise.
Controlled growth requires selectivity. It also requires leadership. Strong markets have a way of relaxing standards. Teams become comfortable. Processes that were once followed consistently become optional. Small problems are ignored because the company is busy and revenue is strong. That is exactly when discipline matters most.
The best contractors use busy periods to strengthen their organizations. They improve communication between departments. They develop future leaders. They refine operational procedures. They invest in systems that create consistency. Instead of allowing growth to expose weaknesses, they use growth as an opportunity to build a stronger company.
Eventually, every market changes. Work slows. Competition increases. Margins tighten. Contractors who expanded recklessly often discover that many of their problems were simply hidden by volume. Companies that grew with discipline enter those periods from a position of strength. Their systems remain intact. Their leadership teams are prepared. Their operations remain consistent.
A strong backlog is a valuable asset but it is only one measure of business health. The contractors who succeed year after year understand that sustainable growth is not about taking every opportunity that comes along. It is about building an organization capable of handling opportunity without losing control.
After decades in this industry, I have learned that the strongest roofing companies are rarely the ones growing the fastest. More often, they are the ones growing deliberately. They understand their capacity. They protect their culture. They maintain accountability. They refuse to sacrifice operational discipline for short-term volume.
Momentum can feel powerful. Control is far more valuable.
John Kenney, CPRC is CEO of Cotney Consulting Group, Plant City. He has decades of experience on commercial roofing projects, providing a unique understanding of what it takes to succeed in roofing – on the roof, in the office and at scale. John saw the need to provide contractors with strategic guidance built on real-world field knowledge. Cotney Consulting offers COO on Demand, online training, technology solutions, business advisory consulting, collections, contracts, Castagra estimating training, safety and OSHA training. John partners with FRSA to provide educational seminars. For more information, contact John at jkenney@cotneyconsulting.com or
813-851-4173.