When you compare quotes for industrial facility roofing systems, the lowest bid tells you which system costs the least to install, not which system costs the least over its lifespan. A roofing system with a higher installation cost can still deliver a better return on investment (ROI) if it lasts longer, needs fewer repairs or lowers your energy costs enough to offset that upfront price. Evaluating industrial facility roofing systems for long-term ROI involves looking at the total cost of ownership across the system’s service life, not just the installation price.
What Is a Lifecycle-Cost Approach to Evaluating Industrial Facility Roofing Systems?
A lifecycle-cost approach adds up every cost associated with a roofing system over its full service life, then divides that total by the number of years the system is expected to last. The result is a cost-per-year figure you can compare across different roofing options, even when those options have different installation costs and different lifespans.
This method solves the problem with only comparing installation cost when evaluating the long-term ROI of a new roofing system. A lower installation cost does not automatically mean a lower total cost over the roof’s lifespan. If that system has a shorter service life or higher maintenance costs, it can end up costing more per year than a system with a higher installation cost that lasts longer and needs fewer repairs. The cost-per-year figure accounts for that difference directly, instead of leaving you to guess at which option will be the most cost-effective over time.
Important Factors to Evaluate When Measuring a Roofing System’s Long-Term ROI
Evaluating the following factors will help you determine accurate cost-per-year figures for each roofing system you’re comparing:
- Installation Cost – The total cost to install the system, including materials and labor, provides you with your initial upfront cost.
- Expected Service Life – The manufacturer’s rated lifespan for the system determines how many years you divide the total lifecycle cost by.
- Annual Inspection and Maintenance Cost – Routine maintenance costs accumulate every year the roof is in service, so they add directly to the total lifecycle cost.
- Repair Frequency and Cost – Systems that need frequent repairs can add significant long-term costs to your regular maintenance expenses, and those repairs tend to increase in frequency as the system ages.
- Energy Impact – A roofing system’s insulation and surface reflectivity affect how much you spend on heating and cooling your building throughout the year.
- Risk Cost – If a roofing system fails, you risk incurring costs associated with water damage repairs, ruined equipment or inventory, and lost production time while you address the damage. Since these costs only materialize if a failure occurs, you’re estimating a probability-weighted cost based on how failure-prone a roofing system has historically been and how exposed your operation is to those failures.
- Replacement Timing and Disposal Costs – The cost to remove and dispose of a system at the end of its service life adds to the total lifecycle cost of the system.
How Do Maintenance, Repairs and Energy Costs Impact Long-Term ROI?
Maintenance, repair and energy costs rarely stay constant over a roof’s service life. A system in its first few years typically needs only routine inspections and minor upkeep. But over time, seams, flashing and membrane materials degrade. This typically increases the frequency of repairs in the later years of a roofing system’s service life.
That increase must be factored into your cost-per-year estimate. If you calculate maintenance and repair costs using only the roof’s current condition, you’ll underestimate the total lifecycle cost for a system nearing the end of its rated service life. Building in an assumption that these costs rise over time gives you a more accurate comparison of the long-term ROI associated with each roofing system you’re evaluating.
Energy impact also increases your costs over time. A roofing system’s insulation and reflectivity typically degrade somewhat as materials age, which can gradually increase the energy cost side of the calculation even if the system hasn’t failed or required a repair.
How Do Risk Costs and End-of-Life Costs Factor Into ROI?
Risk cost and end-of-life cost differ from the other variables in your calculation because neither one is a fixed annual expense. Risk cost refers to the potential expenses you may incur in the event that your roofing system breaks down and becomes damaged. You’re estimating what a failure would cost you if it happened, weighted against how likely that system is to fail based on its track record and how exposed your facility is to the consequences. End-of-life costs are guaranteed to happen at some point, even though the exact timing depends on how long the system lasts. Every roofing system will incur costs associated with removing and disposing of it once it reaches the end of its lifecycle.
Both costs must be factored into your cost-per-year figure. Leaving risk cost out of the calculation favors systems with a history of failures, since their higher probability of costly damage never gets counted against them. Leaving out end-of-life cost understates the total lifecycle cost of any system, since removal and disposal costs apply to every roofing option you’re comparing.
HRS Commercial Roofing Can Help
If you’re looking to replace the roof at your industrial facility, HRS Commercial Roofing can help you navigate the process to ensure you choose the right system to maximize your roof’s long-term ROI. We provide comprehensive roofing services for warehouses and industrial facilities, and our team has over 50 years of experience performing roof replacements on these buildings. Our team installs a wide range of commercial roofing systems used with industrial facilities, and this experience allows us to provide customized solutions to address the specific needs of your building.
HRS is a subsidiary of Haselden Construction, a family-owned company serving Denver and the Front Range for over 50 years. Haselden is the only contractor of its size with a dedicated commercial roofing team, and our affiliation with them allows us to keep all work in-house. You’ll benefit from a more streamlined process, faster turnaround times and highly competitive pricing. As your dedicated commercial roofing partner, we’re equipped to address all the needs of your roof throughout its lifecycle, and you’ll have peace of mind knowing that all work will be performed according to Haselden’s standards for exceptional quality and workmanship.
Contact us today to discuss your roof replacement options. HRS Commercial Roofing serves industrial facilities in Denver and throughout the Rocky Mountain region.
Frequently Asked Questions About the Long-Term ROI of Industrial Facility Roofing Systems
What is a lifecycle-cost approach to evaluating commercial roofing systems?
A lifecycle-cost approach adds up every cost a roofing system generates over its full service life and divides that total by its expected years of service. This process generates a cost-per-year figure you can use to compare systems with different installation costs and lifespans.
What factors affect the long-term ROI of an industrial facility roofing system?
The main factors impacting your roofing system’s ROI are installation cost, expected service life, annual inspection and maintenance cost, repair frequency and cost, energy impact on heating and cooling, risk cost from potential failures, and replacement timing and disposal costs at the end of the system’s life.
How do you calculate the cost per year of a roofing system?
Add up the installation cost, total maintenance and repair costs over the system’s service life, energy impact, risk cost, and disposal cost. Then divide that total by the number of years the system is expected to last.
Why isn’t installation cost a reliable way to compare roofing systems?
Installation cost only reflects what you pay upfront. A system with a lower installation cost can still cost more per year than a higher-cost system if it has a shorter service life, needs more frequent repairs or runs up higher energy costs over time.
