Will Lorenz - Opportunities in Uncertainty - PODCAST TRANSCRIPT

Editor's note: The following is the transcript of a live interview with Will Lorenz from General Coatings. You can read the interview below or listen to the podcast.

Intro: Welcome to Roofing Road Trips, the podcast that takes you on a thrilling journey across the world of roofing. From fascinating interviews with roofing experts to on-the-road adventures, we'll uncover the stories, innovations and  challenges that shape the rooftops over our heads. So fasten your seat belts and join us as we embark on this exciting roofing road trip. 

Heidi Ellsworth: Hello and  welcome to Roofing Road Trips from RoofersCoffeeShop. My name is Heidi Ellsworth and  today, oh my gosh, I'm so excited, we are going to get to talk about politics, about what's happening in the world, about just overall kind of geopolitics with one of my favorite people who I always learn so much from and  that is Will Lorenz with General Coatings. Will, welcome to the show. 

Will Lorenz: Hello, Heidi. Thank you very much. Always glad to be a part of RoofersCoffeeShop and the whole CoffeeShop family and to share what information we know, but mostly to just be a part of the success of the roofing industry and continue to help everybody grow and be successful. 

Heidi Ellsworth: Yeah, thank you. You do such an amazing job with that. You are such an advocate for the industry and giving back. Last week you and I were at Roofing Day in Washington, DC. We had some great meetings, some great time and conversation, a little bit of video. We did a little video there too. But let's start out with having you introduce yourself and tell us a little bit about General Coatings. 

Will Lorenz: Sure. Well, my name is Will Lorenz. I'm president of General Coatings. We're a manufacturer of spray polyurethane foam roofing systems and roof coatings. So we make HFO-based foam since that's the newest, latest technology out there. We make roof coatings, acrylic silicones and  urethanes. And we have great products with UL and FM credentials, so suitable for new construction, re-cover and  retrofit. So great solutions for people looking for energy-efficient waterproofing roofing systems. 

Heidi Ellsworth: Yeah. We were talking about that last week about how important spray foam is when you're looking at the energy savings for buildings, the energy legislation and what is going on and just overall for sustainability in our climate. It's making a huge difference and  I love watching that. And this from the SprayFoam show earlier this year all the way through last week at Roofing Day, it's just a topic, it's a hot topic. 

Will Lorenz: It is. I mean, I think the previous administration had invested in the infrastructure and did things saying they want to make buildings more durable, more fire-resistant, more energy-efficient and  improve things overall for hopefully our kids as far as climate change. 

Will Lorenz: And there's all politics about that, but the bottom line is we have a lot of aging buildings that we need to take care of them, whether they're school buildings, commercial buildings or  our government buildings. We need to make sure that they're sustained and continue to serve the purposes that we invested in them. 

Heidi Ellsworth: Agreed. Agreed so much. Well, okay, let's dive into some of this fun conversation. After last week and everything, I would just love some of your thoughts on what you're seeing with the economy and some of the political uncertainty that is really kind of starting to affect not just the roofing industry, definitely roofing industry, but construction overall, the country. What's some of your thoughts on what's happening? 

Will Lorenz: So I would first start off and say Americans are very innovative and they're very resilient. And so when there's uncertainty or turbulence, they might pull back a little bit or they might rethink things, but we are risk-takers and we are people that look to satisfy our clients and we're looking to grow all of our businesses. 

Will Lorenz: So what it's caused is people to put their caps on and start to look at creative ways to continue to make their business successful. And so I think people are looking at how they're spending their money and making sure they're doing a good job with that efficiently. They're looking at their labor pool and making sure that they get trained, qualified people. They're making sure that their business practices are sound and that they're not wasting money. And then they're trying to find ways to innovate to try and get that extra sale or make more money on that sale because they did it smarter. So these times, if you will, cause people to have to put the car into overdrive rather than into reverse. 

Heidi Ellsworth: And I love what you just said there, Will, because I feel so much the same way about the resiliency of the American people. I know you went through it too, you and I both went through it at different companies through the Great Recession, just knowing every day you go out there, you do your job, you sell, you make things happen. 

Heidi Ellsworth: And we're definitely not anywhere close to that in today's time. We've had such a great last four year, five, six years and  we really are seeing that. But I see that resiliency, again, to what you're saying. Especially looking in the roofing industry, contractors are diversifying, they are looking at bringing on different products, really looking at the opportunities that are out there right now. I know as a small business we are doing the same things. 

Heidi Ellsworth: What are some of the options, do you think, for contractors to really, no matter what's going on, there's always opportunities if you look for them? What are some of the opportunities and  also, what are some of the risks and things that maybe they should be a little cautious about? 

Will Lorenz: So what I would first say is you have to have a good understanding of what your clients want and what they can afford. And so part of that is educating, "Hey, you can do this today or  you can't do this until next year," and offering solutions. And for some people with tight budgets and the business uncertainty, they're going to want a great maintenance program. They're going to want someone to make sure that what they got is going to kind of get them by until they can address it in the best manner that they need to. 

Will Lorenz: Other people are going to look at it and say, "Look, I want to get those tax credits. We're still having a good year. We see optimism that's going to come through when this tariff thing sort of simmers down or  it just, one week it's up, one week it's down, so let's just plan one way or another." 

Will Lorenz: And a lot of people are, like I say, they're gamers. So they're going to go, "Hey, I still think we're going to have an excellent year and  that's what our company believes," so they're going to invest and they're going to keep trying to do the smart things. 

Will Lorenz: When you look at capital, most people are most comfortable spending it on things that generate revenue for them. And so when you look at sometimes structures, they don't always view that those things are positive to their bottom line. 

Will Lorenz: A new building certainly does, new equipment does, but sometimes addressing the old is really about downside risk. It's really about making sure that you don't have catastrophic issues or leaks or failures that cause you to spend even more money or downtime. And so sometimes in these equations, people, they're willing to part with money for the upside and  you have to remind them that you have to protect your assets. 

Heidi Ellsworth: Yeah. Yeah, no, I think that's exactly. And really I'm hearing the same thing from contractors all over, Will. I'm hearing good backlogs, good business and  but yet everyone's just being aware. I don't even want to say cautious because it's really not cautious. They've got work, they're getting stuff done, but they're trying to be very aware of what's happening and mitigating risk. 

Heidi Ellsworth: And so you brought up tariffs and  I should have probably done that a little bit earlier, but we're going to have a great conversation next week with you and Trent Cotney and I about tariffs. But so let's give just a little sneak peek here. I mean, I know it's up and down. What are some of the things that you see might be affecting you as a manufacturer that contractors should be aware of? 

Will Lorenz: So when we look at the overall roofing business in general, there's a lot of products that are manufactured in the United States. There's a lot of things where they're sourcing that is almost adequate for demand. 

Will Lorenz: And so the impact of tariffs coming in and affecting those things will be kind of minimal because really, people aren't buying some of those products from overseas, they're buying domestically. 

Will Lorenz: But if they do raise some tariffs in those sectors, then sometimes the raw material manufacturers of those things see an opportunity to charge more because that's the new market price, it's market price plus tariffs and freight. And so those things come into play. 

Will Lorenz: And then there are roofing products that come from overseas because unfortunately we didn't invest in the United States. The culture of the '90s and the early 2000s was finding globally the best sources. And we probably should have considered doing more investment in the United States for jobs and for our own national security and for protecting our industries. 

Will Lorenz: And so those things are going to be more challenging to solve long-term. And hopefully the tariffs, I don't believe, hopefully they're not really just trying to have revenue sourcing for the federal government. I hope that they're really trying to foster innovation and investment in the United States so if we have some challenges or corrections, it results in a stronger, better America so that we have more opportunities for people to have jobs all the way up and down the roofing food chain. Whether they're making things and they're getting it out of the mine or they're putting it out of the trees or they're building in the polymer plants or they're installing roofs, all the way up and down are successful because they're American jobs. 

Heidi Ellsworth: That is kind of how I've been looking at it too, Will, I have to say. I've really been looking at, "Okay, what are the opportunities going to be from this if we just kind of put some of the craziness aside and just say, 'Okay, let that play out.' But what are the opportunities?" And the opportunities really are for made in USA products, for looking at products that maybe you haven't looked at before. I mean, we know this happened during the material shortage where when there was a material shortage, other products that there was not a material shortage for grew. 

Heidi Ellsworth: And so I'm just kind of thinking back to when we were at the SprayFoam show and really the projects that I saw, the New Orleans Convention Center, all spray foam, beautiful roof coatings. I mean, it's just a beautiful roof. 

Heidi Ellsworth: And there's a lot of opportunity with products and  not to mention the energy savings from that project, but there's just a lot of opportunities for contractors right now to maybe, by being aware and doing their research, listening to CoffeeShops, to find out about other products, other systems, other possibilities. 

Heidi Ellsworth: What's some of your advice to contractors as they start doing some of that research, maybe diversifying their business and  bringing in some opportunistic USA-made products? 

Will Lorenz: Yeah. Well, I think first of all, we're a society based upon demand. So understanding what the customer wants is first. And I think, as I was kind of alluding to, if your customer has a budget of X, Y and  Z, you want to be able to offer them products or systems or labor programs to meet any of those scales. And then you want to be able to have that communication with them about what fits that budget and what's the pros and cons. 

Will Lorenz: Not everything is a brand-new, not everything is the Rolls-Royce, so to speak. Many times people make decisions as a, "This is what we can afford or this is what's suitable for us because we're going to make an investment here at this level and this is what we can afford to make in this investment here." 

Will Lorenz: But when you look at it on a product level, I mean, we think spray foam overlay as a roof system is a great system versus tear-offs. Don't open up your contents, you want to improve your waterproofing, you want to save some more energy, you want a roof that can last, so we're a big promoter of put a couple inches of spray polyurethane foam over most existing roof systems, as long as they're in good condition and  now you've extended the life of your roof and you've made it durable, structurally sound and  a high-performance roof. 

Will Lorenz: But if that's not within the cards and you're looking at stuff and you're saying, "Well, we've got a built-up or a metal roof here and  the ability for us to substitute that with a brand-new roof is quite costly for us," so a coating system on top of it to restore it and do it is a great solution and offers a cost-effective way of water-tighting your roof and making sure that you can keep functioning as a business. 

Will Lorenz: And so those are two offerings. But again, if you've let your roof go or  for some reason your asset is at the point where it's diminished and depreciated and you need to just make that investment, then do the right thing, tear off your roof, put on a new roof. We support putting on an insulated spray polyurethane foam roof. We think that's a great solution. 

Will Lorenz: New construction places like in Las Vegas have been doing that and  we think that's a great success. But scale it to what people can afford and what people want out of the benefit and  I think that's what's important. 

Will Lorenz: And as a whole, I know think coatings are underserved as a value proposition for many people. I think many times the design community views it as a short-term, two-year, Band-Aid solution. And I'll say ourselves as a company and many of our competitors do a great job of offering coating systems that restore and are warranted out there for 10 to 20 years and  they're performing roof systems. And so the design community is something that we all have to continue to educate on the value, because if you have to repaint your car, you don't necessarily always need to go buy a new car, you can just get it repainted. 

Will Lorenz: And so the service is what's important. What the installer does to educate and support them and make them comfortable about what they're going to provide usually is the biggest deal-maker there. Because when I see roofers out there, I see people who stand behind their work and do good work and  so it's really about them getting in front of those decision-makers and telling them what they can do. 

Heidi Ellsworth: Yeah. Will and  it really brings up a great point on the importance and  we've seen huge growth in this area, but the importance of roofing companies offering service and maintenance programs. 

Heidi Ellsworth: Really understanding the roofs, we had a great conversation yesterday about respecting the roof and how building owners then are collaborating and working with roofing contractors to either extend the life, to be really honest, to make sure that the roof stays in good condition longer through restoration, through different objects. So for contractors, that's probably more important than ever. 

Will Lorenz: I think so. I mean, I think when you make most of your major purchases in your life, which is your house and your car, you expect that there's some requirement for you to maintain it and invest in it and keep it renewed. 

Will Lorenz: And so it's the same thing with a business. If you have a piece of equipment that's running, you have to have somebody making sure that it's in top condition, it's safe and  it does the job at the efficiency that you need to. And when it's worn out and there's something more suitable, you replace it. But if it's doing a great job for you and it's paid for and it's helping you make money, most people continue to keep that thing running and  they make sure that the small parts and things that they need to keep it running are there. And so your roof should be treated the same way. 

Will Lorenz: And many people look at a warranty program and expect that it's a, what I would say, it's a one and done, it's a, "I got it. I've got my protection. I don't need to worry about it until there is a problem." And honestly, you want to maintain your roof so that you don't have to have a situation of warranty claim or dispute, because the last thing you want to do is have someone be dissatisfied because there's other things that happened on your roof that aren't covered by your warranty, there's abuse or neglect and  those things generally aren't covered by people. And if you own an asset, don't let those things be a cause for you to lose your warranty. 

Heidi Ellsworth: Yeah. It's so true. And really working with contractors who are tracking that, who understand the warranties, when it goes out of warranty, all of those kind of things, I think that has become very requested by facility managers, building owners. They want a contractor who can really kind of understand, who's working with manufacturers who can bring the right solutions, whether that's coating, spray foam or  other systems that are out there. 

Will Lorenz: So I would just add to you that I think the mentality has to be this is a lifetime customer. If you're involved with them in new construction and reroofs or restorations, they're always going to have a need because they've got a structure. 

Will Lorenz: So you want to be that lifetime partner providing that intel on to them as to where they stand, helping them through minor things that might be just simple drain clogs and other stuff, minor abuse that you can work with them and they can pay for because they're clearly not covered, but keep them so that their roof is performing. So you're the choice because you've provided that successful relationship of support to them that they can trust you for the next investment that they need to make. 

Heidi Ellsworth: Yeah. And it really, this circles back to where we started on this podcast, dealing in times of uncertainty. Really, if you have that relationship, that lifelong relationship that you're talking about, then it's not one of those things of the building owner or facility manager saying, "What? Prices are going up? Why? Because tariffs? It doesn't make sense." 

Heidi Ellsworth: No, it changes to more of a conversation and a collaboration where they're able to say, "Hey, we're seeing this out on the horizon. There's some uncertainty. We're taking care of you. Let's have some conversations. Let's talk about your roofs right now. Let's talk about what we need to do, maybe doing some extra inspections just to make sure you're safe until we know a little bit more or until things calm down a little bit." 

Will Lorenz: Yeah. And I think these things that are happening in the US and the global market are what I call macro buttons. They're ones that everybody is aware of. 

Will Lorenz: So if you're in business, there's something that of yours that's being affected, not just your roof. Maybe it's your home loan, maybe it's what it is, affordability of food that you have. So everybody is involved with that. 

Will Lorenz: But I also know that we also, as Americans go, just like we went through COVID, we go, "Okay." We went to this stage of where we had to be super protective and all those things and  then we all figured out like, "Hey, we got this down. We could make this happen. We can continue to grow. We're not down on our back. We're going to get up and have successful business and really run, not just run." 

Will Lorenz: And that's what I see sometimes, this thing, it causes us to kind of stumble, but the agile, smart folks go, "Where's the opportunity? Let's keep going." And if you're talking with great customers that says it's not this year, then support them with that, but means you got to go find new customers who are ready for your products and services for this year. 

Heidi Ellsworth: Right. And roofs have to be, they have to work, because it protects everything that's important for businesses, for homes, for... I mean, it's one of the basic things, right? Food, water, shelter. Our industry provides the shelter that everyone needs, so it just doesn't go away. 

Will Lorenz: And what I would kind of lead on tariffs is that right now nothing is saying that there's going to be shortages out there. What it's just saying is that there's a cost increase that could occur due to the government's determination of what's a fair transaction across countries. 

Will Lorenz: And so what I would say is many other countries, many other regions are in more difficult circumstances economically than the United States by far and away. We have the most prosperous area going on despite uncertainty of tariffs. America is doing well and there's bright opportunities here and  so people are looking to find a way to grow. 

Will Lorenz: And so my advice, don't pay attention to the stock market, pay attention to your customers and go out and service them and find more because it's Carpe Diem, [inaudible 00:23:14]. 

Heidi Ellsworth: I agree. I'm pretty funnel vision myself. I'm like, "Okay, this is about business. Let's go, let's take care of ourselves, take care of our country, take care of all of our customers out there, make sure things are right." 

Heidi Ellsworth: And but I do, I want to kind of bring it around too in that I think the focus on your customers, focusing on what their needs, but also taking the time to really look at what you're offering and  is what you're offering around roofing systems, around service, around all those things, is it providing what your customers want? Or maybe what your customers are going to need and don't even realize yet that they're going to need that? 

Heidi Ellsworth: Think about California with the energy regulations and how much insulation you need to have. Being in front of those kind of things can allow you to really take care of your customers early on. 

Heidi Ellsworth: So Will, some of your advice for contractors as they are looking at this and looking at new products and looking at figuring out the regulations, because it's not just tariffs, we've got regulations out there, we've got a lot of things that we're maneuvering, what's some of your advice for them to expand their business and to really listen and maybe even see ahead of what their customers are going to need? 

Will Lorenz: So what I would say is many times there are customers that are putting on in Florida and other areas, they're putting on roofs because of insurance requirements. So rather than debate what is the state policy, offer products and systems that are going to meet those requirements and be insurable by those entities. We as an industry will fight for your rights and fight for the causes to have that. 

Will Lorenz: But if you can offer an FM-insured type of system, like General Coatings has, spray foam systems with FM approvals, hey, those things the insurance companies, Factory Mutual, are saying they support. So offer that type of upgrade to people in that uncertainty. 

Will Lorenz: If you're in areas where people have been greatly concerned about weather circumstances with regard to hail, offer enhanced programs that have more durable hail resistance. We've got products that are tested with that so that people can say, "Yes, if I'm going to do something now, I'm going to do it because it's really going to improve my building and make it more sustainable so I maybe don't have as many challenges in the future." 

Will Lorenz: Or if you're in an environment where people say, "Well, this is all we got," then you look at products such as what we've got a new line of coatings coming out or Ultra-Flex 1900 high build coating, so you can apply that on as a thicker acrylic and get it, but you can do so on a lower labor cost. So you can meet their price point because you're considering new products more cost-effectively so they can make that investment at the level that they can afford and  you can also do the job and make the money that you need to. 

Heidi Ellsworth: Yeah. I love that. And what I really love is when you look at the roofing manufacturers, they have been so laser-focused in on labor savings, products that provide against extreme weather that help with labor savings, that perform and offer that building resiliency that they need. 

Heidi Ellsworth: So kudos to you, Will and  General Coatings and Polycoat and all of your companies that have really put so much into research to have the right products to kind of traverse these uncertain times. 

Will Lorenz: Well, I'll also say that we've been partnering with roofers and going to some trade shows, whether it's facility shows or whether it's apartment shows or whether it's property management shows and  so we're trying to partner and invest with our customer to go help them find more work and show the benefits, not only of them as a great installer that we support, but also our products and systems that they utilize to provide those solutions. 

Will Lorenz: So choosing the right manufacturer who's willing to help you get more work, close more jobs and  grow your business even on uncertain times is the right partners for you to consider. 

Heidi Ellsworth: That's the perfect summation right there, because it really is about those relationships, having those relationships with your manufacturers, with your distributors and  being involved with the associations that drive our industry that can make such a difference in your business. So Will, thank you. This, as always, so much fun. 

Will Lorenz: Well, thank you, Heidi. It's always a pleasure and  I look forward to getting together and speaking with you and being a part of the Roofing Alliance, coming up in their meetings. It's always important to give back and do the right thing for the industry and help people and  just glad to be a part of that and part of the RoofersCoffeeShop family. 

Heidi Ellsworth: Thank you. I'm so glad. I'm so glad to have you a part of the RoofersCoffeeShop and  for us both to be members of the Roofing Alliance and get to spend that time really looking at the industry and what we can do. It's not only important to give back, but it makes you just feel dang good. That's all there is to it, so. 

Will Lorenz: Absolutely. 

Heidi Ellsworth: Thank you so much again, Will and  we'll be seeing you not only at the Roofing Alliance next week, but we'll be seeing you on Coffee Conversations. 

Will Lorenz: Absolutely. 

Heidi Ellsworth: Okay. And thank you all for listening. Please check out the General Coatings directory and the EVERROOF directory on both RoofersCoffeeShop and CoatingsCoffeeShop. Great information, just what we've been talking about, how to diversify your business. If you're not already offering spray foam solutions and systems, it's something you really need to look at and  also, roof coatings, one of the hottest things out there, both of that system together. 

Heidi Ellsworth: Also, check out all of our podcasts under the read, listen, watch navigation under Roofing Road Trips. Be sure to subscribe on your favorite podcast channel and set those notifications so you don't miss a single episode. We'll be seeing you next time on Roofing Road Trips. 

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