By Adam Cabrera.
If you follow roofing industry news, then you probably have a good idea of some of the economic trends we’ve been seeing over the past few years. But have you ever wondered what the roofing economy looks like from a legal perspective?
In a recent Roofing Road Trips episode, Heidi J. Ellsworth had a conversation with Trent Cotney, a partner at Adams and Reese and the general counsel for several roofing associations. Together they dive deep into the state of the economy and some of the expertise Trent had to offer on the subject.
Central to the discussion was the increasing trend of roofing contractors using sub labor. "More and more contractors are using sub labor, so a ton of questions about how to use them... what's legal, what's not legal," Trent commented. He emphasized the significance of differentiating between subcontractors and sub labor, shedding light on the potential pitfalls of misclassification.
Similarly, with shifts in the economic landscape, such as interest rate hikes, Trent pointed out their possible ramifications. "The cost of money is more, so new development is getting hit," he shared, stressing the importance for contractors to keep abreast of these changes.
There is also a rising presence of private equity in roofing, with firms investing in roofing companies. Trent's advice to contractors was to carefully select the right equity partner and be prepared for the accompanying challenges, especially with potential mergers and acquisitions. For example, mergers in the manufacturing and distribution sectors have the potential to redefine a contractor’s relationship with a manufacturer.
Lastly, Trent, being well-versed in regulations, highlighted state and federal issues that the roofing sector faces. Notably, he mentioned new lead-related regulations in California and changes in Florida's insurance environment.
The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.
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