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February 2013 - as seen in our digital magazine

Hawaii's Top Roofers
Contractors Report Growth

By David Putnam
Tax credits for solar systems were key in 2012.
Will rail be the next big boom for the roofing industry?

The past year was one of overall growth for Hawaii's roofing industry, with more than 71 percent of the companies that responded to Building Industry magazine's survey reporting revenue increases. Kapili Roofing, which broke into the rankings at the No. 5 spot, had a particularly impressive year in 2012, posting a 61 percent hike in business.

The top four roofers in the rankings remain unchanged, with Beachside Roofing, LLC holding a solid grip on No. 1 with $25 million in 2012 revenues. Beachside again dominated the local roofing industry despite downsizing its workload after reporting revenues of more than $34 million in 2011.

"Our efforts in 2012 and into 2013 are focused on providing the best service for each customer, therefore performing with less volume will allow this effort and attention to each project and client satisfaction," says Scot Jimenez, Beachside's CEO and president.

Commercial Roofing & Waterproofing Hawaii, Inc. was No. 2, followed by Tory's Roofing & Waterproofing, Inc. and Tropical Roofing & Raingutters, Inc. Combined revenues for CRW, Tory's and Tropical in 2012 hit $40 million.

There's a new category in this year's Building Industry rankings: Top 5 Most Improved. By more than doubling its revenue from 2011, Kapili Roofing was a runaway leader in this list.

Cool Roof Hawaii and Aloha Roofing, Inc. were next, with Shafer's Roofing, Inc. at No. 4 and Surface Shield Roofing Co. at No. 5.

Although the roofing industry seems to have held steady the past two years, Bernadette Shafer Robins, president of the Roofing Contractors Association of Hawaii (RCAH) says the outlook for 2013 "remains cautious."

"In 2012, the roofing industry benefitted from the demands for solar systems on both residential and commercial properties, due significantly to solar tax credits. An extension of the credit would benefit the industry in 2013," Robins says.
"The potential for military spending cuts also looms on the horizon, and the loss of Sen. Dan Inouye will be felt for many years, if not decades," she adds.

Here's a look at the Top 10 roofers for 2012:

1 Beachside Roofing, LLC $25 million
2 Commercial Roofing & Waterproofing Hawaii, Inc. $16.5
3 Tory's Roofing & Waterproofing, Inc $13
4 Tropical Roofing & Raingutters, Inc $10.5
5 Kapili Roofing $5.25
6 David's Custom Roofing & Painting, Inc. $4.5
7 Surface Shield Roofing Co. $4.03
8 Pacific Industrial Coatings, LLC $3.4
9 Shafer's Roofing, LLC $3.01
10 Honolulu Roofing Co., Inc. $1.8
TOP 5 Most Improved
(The Top 10 were selected based on total 2012 revenues as reported by those companies responding to our survey.)
Hawaii's top roofing contractors once again reported solid earnings despite the ups and downs that still plague the economy. The Top 10 roofers for the past year, based on those companies who responded to Building Industry magazine's survey, all posted solid revenues. In their profiles they reflect on 2012—and what lies ahead.

1 Beachside Roofing, LLC

> Scot Jimenez, CEO/President
> Specialty: Complex and high-rise roofing system installations and building integrated photovoltaic (BIPV) roof systems
> Hawaii state license: BC-22075

In 2012, Beachside Roofing, LCC completed several high-profile projects such as at Aulani, a Disney Resort & Spa in Kapolei, and the Halekulani Hotel in Honolulu. These jobs, plus many others, tallied up to $25 million in revenues for the 29-year-old roofing company.

But wait, there's more—much more—to Beachside Roofing's story: After posting more than $34 million in revenues in 2011—definitely a banner year—the company made a pivotal decision to focus more on clients' needs rather than overloading its schedule.

Still, Beachside held on the No. 1 ranking despite earning $9 million less than in 2011, and $4 million less than in 2010.

And though its shift resulted in a lighter end-of-year bottom line last year, the game plan will continue, says Scot Jimenez, CEO and president of Beachside.
"2013 for Beachside will be a continuation from 2012 of focus and attention to doing our best job for each customer," Jimenez says. "Our goal is to provide the best service and installation for each project so that each client receives the best value for their investment, resulting in the safest choice."

In 2012, he says, reroofing the Halekulani Hotel posed particular challenges. "We were working very high and while the hotel was in operation. Coordination with Hawaiian Dredging and the hotel management was crucial to the success of the project."

Beachside, which moved into its larger facility in Kapolei in 2011, did 40 percent of its work in the public sector, such as doing roofing and photovaltaics work for the U.S. Navy Child Development Center at Pearl Harbor and the Salvation Army Kroc Center. <back to list>

2 Commercial Roofing & Waterproofing Hawaii, Inc.

> CEO/President: Guy Akasaki
> Specialty: Roofing (low slope, architectural metals, steep slope), coatings (above/below grade waterproofing, roof maintenance and management), Photovoltaics (building integrated and applied PVs, engineering and sizing for usage and providing approaches for renewable energy tax credits), turnkey (roofing/PV installations under one warranty).
> Hawaii state license: BC-18179

We continue to be passionate in executing our mission statement: Working together as a unified team of professionals utilizing our experience and talent, to be on the cutting edge of construction technology, exceeding client expectations … with a passion," says Guy Akasaki, CEO and president of Commercial Roofing & Waterproofing, Inc. (CRW).

Adhering to its goals helped CRW retain the No. 2 spot in the ratings as it reports $16.5 million in revenues for 2012. That figure tops last year's record $16 million for CRW, which was a $6.5 million jump from its 2010 revenue.

"With the spectra of the looming 'fiscal cliff' looking forward into 2013, while we like many others are concerned, we have a cautious optimism," Akasaki says. "With our strategic moves to diversify into Pacific Rim initiatives over the past years, and we hope to diversify our risk in the tumultuous economy.

"Success is a process and not a destination, and as such, in the time of feast we have done what we can to prepare for the economic drought."

He adds that "the local economy appears to be showing signs of movement."
CRW's roofing and solar installation projects in 2012 ranged from the highly technical Unicode structures to various retail and commercial clients such as Walmart, Safeway, Kmart, the Royal Hawaiian Center, the Sheraton Kauai Resort, the Newtown Bus Park, Continental Airlines and more. It's also done residential projects, including 13 buildings at Mililani Garden II, 22 buildings at Kahala View Estates, Marina Palms, Honolulu Towers, Harbor Court, Lakeview Garden and Alii Place.

CRW's work at Unicold, a cold storage facility, stands out for its unique challenges, Akasaki says.

"Unicold was a 'green' project executed in a partnership with Greenpath Technologies Inc.," he says. "The two entities worked together to develop and install a PV system in unison with a new cool roof system and a long-term power purchase agreement, providing an efficient turnkey energy solution for Unicold's needs and lowering its utility and operating costs."

Other milestones for CRW in 2012 included moving into a new home in West Oahu, utilizing Internet-based apps, providing roof assemblies pre-positioned for solar arrays and launching a commercial gutter installation service.<back to list>

3 Tory's Roofing & Waterproofing, Inc.

> CEO/President: Louis Tory Jr.
> Specialty: Problem-solving roofing; taking projects that no other contractor will take and finding solutions for the client.
> Hawaii state license: BC-8576

Founded in 1972, Tory's Roofing & Waterproofing, Inc. repeats at No. 3 in this year's Top 10 list. The company's president, Louis Tory Jr., points to mixing tested materials with emerging new products as an important key to success. And, in 2012, Tory's saw revenues of $13 million, up from $12 million in 2011.

"It's an exciting time in the industry as new technologies are shifting installations to be more efficient and encouraging 'greener' ways of roofing," Tory says. "New roofing technology is always brewing; it's just a matter of trial and error and that's where our expertise and skill come into play. And we try to stick to products that have withstood the test of time, and solid manufacturers that will back up their product."

Tory's, which celebrated its 40th year in the Hawaii roofing industry in 2012, had myriad projects last year, ranging from Harbor Court and Tropicana to eight different McDonald's to Christian Academy to the Tripler Command Suite.
"Business was steady and we were blessed to have a consistent amount of business. We have grown as a business in terms of revenue and employees," Tory says.

"We continue to learn and seek new innovative ways of applying new roofing systems, which keeps us on our toes and interested in the roofing industry. The booming solar industry has also had its impact on the construction industry. Working with the solar companies to ensure the best solutions for clients has also been a busy venture for us."

He sees more ahead. "Hopefully 2013 will continue to see steady business in the roofing industry." <back to list>

4 Tropical Roofing & Raingutters, Inc.

> CEO/President: M. Charles Beeck Jr.
> Specialty: All types of roofing
> Hawaii state license: C-21044

Last year was a banner year for Tropical Roofing & Raingutters, Inc. President and founder Charlie Beeck reports that the company hit the $10 million mark for the first time in its 26 years in business in Hawaii.

Tropical Roofing & Raingutters' revenues increased from $8.95 million in 2011 to $10.5 million last year.

Beeck says the majority of the projects were commercial, primarily townhomes. Warehouses, high-rise condominiums, office buildings and single-family homes accounted for the remainder of the jobs that kept the company busy throughout the year. And Beeck notes that he already has plenty of jobs on the books for 2013. He anticipates another good year.

"Most of the townhome work—that comes to us mainly through the property management companies—was reroofing," he says. "We replaced a lot of fire-treated cedar shake, a type of roofing chosen for its visual appeal. Standing seam metal roofing is becoming popular again for both single family and commercial structures. It's a great looking, durable type of roofing that comes in a wide range of colors, but it must be installed properly—if it is, it could last a lifetime."

For warehouses, elastomeric coating was a common choice. Solaris shingles, a "cool" roofing product from CertainTeed, was specified for both single family homes and townhomes.

"We've also installed clay tile on a few single family homes," Beeck says. "It works well for upscale homes, particularly those with masonry exterior walls and Mediterranean-style architecture."

Recently, Beeck completed his fourth and final year-long term as Hawaii Roofing Contractors Association (RCAH) president and Ethics Committee chairman.
<back to list>

5 Kapili Roofing

> CEO/President: Michael Leong
> Specialty: All types of roofing.
> Hawaii state license: C-28938

Entering the Top 10 for the first time is Kapili Roofing, breaking in at the No. 5 spot with $5.25 million in revenues in 2012.

"We set our goals for this past year and tried to stick closely to our plan," says Michael Leong, president and CEO of Kapili Roofing. "Kapili saw an increase in 2012 in both our residential and government sectors. As the economy improved this year, Kapili saw more residential customers starting to make repairs to their homes."
Leong says roof work on the Army Corps of Engineers facility at Fort Shafter brought new challenges to his team.

"Our participation in the SBA 8(a) program resulted in several contracts with the U.S. Army, which increased the government sector revenues," he says. "This project was challenging because we had to make certain that the reroof did not disrupt the workers in the building.

"We utilized a phased approach to completing the roof, making certain that required building access was maintained. We also completed an inside noise decibel survey to make certain that roofing noise was minimal and at a threshold that did not disrupt the building's occupants."

Kapili Roofing says 65 percent of its workload was in the public sector. A key contract was applying polyurethane coating on 1,990 squares atop Building 694 at Schofield Barracks, Leong says.

He adds that "the roofing industry will stay strong in 2013. Our customers are still making repairs and improvements to maintain their homes and facilities. Also, the increased consumer awareness about rooftop solar systems and their benefits will help drive roofing improvements throughout 2013."

The 5-year-old company also topped this year's new category, the Top 5 Most Improved, with a 61 percent increase in business from 2011. <back to list>

6 David's Custom Roofing & Painting, Inc.

> CEO/President: David J.L. Leong
> Specialty: Roofing
> Hawaii state license: BC-19703

Slipping out of the top five this year is David's Custom Roofing & Painting, Inc., which dropped one spot to No. 6 for 2012.

"We're trying to gear down and focus more on residential work," says David J.L. Leong, company president. "Military projects used to be a large part of our business, and we are still involved, but not as heavily."

The company reported revenues of $4.5 million in 2012, a decrease of $2.4 million from 2011 and more than $5.4 million from 2010.

The 32-year-old roofing and painting firm has been chosen three times since 2008 in the Honolulu Star-Advertiser's "Best of the Best" ratings. Leong says most of the company's work last year was in residential roofing and some military projects, with 36 percent of its work done in the public sector.

A signature project in 2012 was installing a custom metal roof on the new 6,800-square-foot luxury home on the slopes of Diamond Head. And David's has landed a U.S. Navy IDIQ (indefinite-delivery/indefinite-quantity) project, which it expects to start in early 2013.

Leong says 2013 "looks pretty good. Things are looking up and I'm starting to see more plans come in, which means people are finally spending money and building things. We are seeing a lot of roofing repair opportunities with the residential solar systems that are being installed.

"We made a lot of friends over the past 33 years and those associations continue to help drive the business to success," he adds. "Our motto of 'Once a Customer, Always a Friend' continues to drive our referral business which is a large part of David's job history."<back to list>

7 Surface Shield Roofing Co.

> CEO/President: Shon Gregory
> Specialty: Full-service roofing company: roof coatings, asphalt shingle, metal roofs
> Hawaii state license: C-28235

With more than $4 million in revenues in 2012, Surface Shield Roofing Co.'s 's projects included Love's Bakery, City Mill Waimalu, Sunset Ranch, Diamond Bakery, Local Motion, several schools and more than 200 residential homes.

"With a steady increase in the public sector and a handful of commercial projects we had a great year," says Shon Gregory, president and CEO of Surface Shield.
Last year also saw the company's "largest expansion of workforce since we began," Gregory adds, noting that 2013 has potential to be an even better year for the Islands' ecomony.

"Well, of course we hope for the very best. But reality is, the more cash that home and business owners make, the more they can comfortably spend," he says. "A surge in the available state and federal projects would be great. Companies could hire additional employees, contribute to the growth of the economy and help create that financial cushion people need in this community to do the home or business improvements they need or want.

"Our hope is to see businesses thriving throughout. Real growth and prosperity is needed."

In a new category this year, Surface Shield also placed among the Top 5 Most Improved roofing companies. <back to list>

8 Pacific Industrial Coatings, LLC

> CEO/President: Bob Johnson
> Specialty: Roofing, insulation and waterproofing (roofs, decks, vehicular traffic areas, wastewater treatment tanks and below grade waterproofing) with a core focus on environmentally friendly spray applied closed cell polyurethane foam insulation with a high solids silicone UV protection top coat
> Hawaii state license: BC-30137

In August 2012 Pacific Industrial Coatings, LLC was selected by the City and County of Honolulu to handle the task of rehabilitating the unique rain-harvesting roof of the Exhibition Hall at the Neal S. Blaisdell Center. The 65,000-square-foot roof is comprised of 72 inverted pyramids that catch water and feed it into surrounding fish ponds. Bladders were installed into the drains to filter the water to protect the fish and plants. The roof deck was cleaned and prepped and Pacific Industrial Coatings applied a closed cell spray applied polyurethane foam (ccSPF) to the upper stories. All sections then were coated with high silicone base and UV blocker top coat.

The reason Pacific Industrial Coatings handled the project so successfully, says president and CEO Bob Johnson, was having "a company culture of dedicated professionals, who work to exceed customers' expectations, who have no personal agendas and who just want success. A successful company culture," he adds, "is a happy company culture."

Pacific Industrial Coatings, which has been in Hawaii for four years, saw its revenues rise to $3.4 million in 2012, up from $3.1 million the previous year.
Another signature job for the company was the Heritage House project. Pacific Industrial Coatings installed a self-flashing, seamless and monolithic system atop an 18-story luxury condominium in Hawaii Kai. The new system replaced a leaking tile roof.

The high-profile Vincent Tai residence at Round Top that is three stories high and features an elevator, an indoor saltwater lap pool and PV panels on the roof, was another happy customer of Pacific Industrial Coatings, which applied ccSPF with high solids silicone base and UV protective top coat.

Other projects Pacific Industrial Coatings completed or started in 2012 include Servco Auto Mapunapuna, Pearlridge Center, University Court, Prince David Apartments, Coolidge Gardens, Wilder House condominiums, Homeowners Design Center and Tantalus Vista condomimiums.<back to list>

9 Shafer's Roofing, LLC

> CEO/President: Bernadette Shafer Robins
> Specialty: Roofing of all types
> Hawaii state license: C-23338

Another newcomer to the Top 10 rankings is Shafer's Roofing, LLC, which added a bevy of military contracts to its workload in 2012.

A major project for Shafer's was a metal roofing contract for the Joint POW/MIA Accounting Command at Hickam AFB. Additionally, Shafer's completed or started jobs for the Department of Defense at Fort Ruger, at Forest City and at the Department of Land and Natural Resources (DLNR) Small Boat Harbor. Commercial and other key jobs included Walgreen's Beretania, Petco Beretania, TJ Maxx Pearl City, Ramar Foods Kapolei, Island Palm Communities, Pacific Power Products and Immaculate Conception Church.

Shafer's saw its revenues rise from $2.4 million in 2011 to more than
$3 million last year.

CEO Bernadette Shafer Robins, who was recently voted president of the Roofing Contractors Association of Hawaii (RCAH), says she "remains cautious" about the roofing industry in 2013. Citing concerns over military spending cuts and less tax credits for solar systems, she also sees room for optimism, especially as work commences on Oahu's proposed rail system.

"All 21 rail stops will require new roofing," she says. "Commercial developments surrounding the rail stops may also require roofing attention."

Robins adds that other job-producing areas to look to this year may include housing developments in Kapolei, Ewa, Maile and Makakilo. 

Shafer's surge in 2012 also landed it in the inaugural Top 5 Most improved rankings.<back to list>

10Honolulu Roofing Co., Inc.

> CEO/President: Dora Fong
> Specialty: Polymethyl methacrylate (PMMA) roofing and waterproofing
> Hawaii state license: C-23799

Honolulu Roofing celebrated its 10th anniversary in 2012 with revenues of $1.8 million.

Among projects completed last year was reroofing the main building and penthouse suites of the JW Marriott Ihilani Hotel.

"Ihilani was completed in the spring and we started work at Hilton in the summer," says Honolulu Roofing's Dora Fong.

But that was just part of the busy year Honolulu Roofing had in 2012.
"The Marianist Center of Hawaii's new parking structure at Chaminade (with Albert C. Kobayashi, Inc., as general contractor) was completed in September," adds Fong. "We also contracted to work on a couple of million-dollar residential projects in Kahala and Kihei. A few state projects that were awarded back in 2009 and 2010 finally started up as well."

Honolulu Roofing also is nearing completion on work at the new East Kapolei Fire Station with Okada Trucking, Ltd., Fong says, adding that "and Swinerton Builders has awarded us additional work at Hilton Hawaiian Village."

In looking toward 2013, Fong notes that Honolulu Roofing has "a few large-scaled projects on the books and we are in the midst of securing a few more. We are keeping our eye on the Kakaako development, residential high rises and photovoltaic installations coming up. We are optimistic that 2013 will be the onset of an upward trend."

Last year the company also completed a project for Allana Buick & Bers, Inc., a Honolulu architectural and engineering consultant firm.

A key event in 2012 for Honolulu Roofing was the retirement of its vice president, Roy Fabella, after 55 years in the roofing and waterproofing industry. The company also added a new superintendent, Bryan Chun, and a new project coordinator, Kim Novak Hekekia.<back to list>

Top 5 Most Improved

This year Building Industry magazine is introducing a new category in its annual roofing contractors rankings: Top 5 Most Improved.
Unlike the Top 10 list, in which companies responding to our survey are rated based on their total revenues, the Top 5 Most Improved is based on how much percentage-wise that a roofing company's revenues increased from the previous year.

Kapaili Roofing tops the inaugural Top 5 Most Improved list after seeing its total revenues soar from about $2 million in 2011 to $5.25 million last year.

The Top 5 Most Improved roofing contractors, with percent of increase in 2012:

1) Kapili Roofing 61%

CEO/President: Michael Leong
Specialty: All roofing types
Founded: 2007
Hawaii state license: C-28938

Kapili Roofing's very impressive year also helped it claim a spot on the Top 10 list for the first time, placing at No. 5. Leong says residential and government contracts provided Kapili Roofing with a huge boost in 2012. He says 2013 will bring even more residential jobs as the economy improves and homeowners look to make needed repairs.

2) Cool Roof Hawaii 45%

CEO/President: Kevin McCallum
Specialty: All roofing and waterproofing types, especially cool roofing
Founded: 2007
Hawaii state license: C-28824

Cool Roof Hawaii's Kevin McCallum says, "Wow, what a year. We completed over 230 jobs in 2012, beating last year by more than 50 projects." Along with a long list of residential jobs, Cool Roof's projects included Castle Medical Center Phase 2 and 3, Olelo, Bank of Hawaii (multiple branches), The Pacific Club, Royal Hawaiian Shopping Center, RSI's new warehouse, Menehune Water, American Carpet One and jobs on Maui (Retina Center), Kauai (Dow Chemical) and the Big Island (Target, Hilo). "We continued (in 2012) to develop strong relationships with our partners and customers. There is nothing like having a happy customer," McCallum says. Cool Roof also moved into a larger home in Kakaako this past year, "taking a foreclosure property that was in need of some TLC and turning it into a great functional shop," McCallum says. "It was exciting for all of our staff to work on our new long-term home."

3) Aloha Roofing, Inc. 32.4%

CEO/President: Edgar Vicente
Specialty: Residential and commercial roofing
Founded: 2003
Hawaii state license: C-26465
The past year included a major move for Aloha Roofing: The Honolulu company expanded its operations to the Neighbor Islands. Vicente points out that Aloha Roofing's Phase 1 work at the Cliffs at Princeville Resort on Kauai "was our first major outer-island project." Aloha Roofing was to begin Phase II work in the first quarter of this year, he adds. Other projects completed or started last year included Honolulu International Airport, the Pacific Guardian Center and Cutter automobile dealerships in Waipahu, Pearl City and Honolulu.

4) Shafer's Roofing, Inc. 24.5%

CEO/President: Bernadette Shafer Robins
Specialty: All roofing types
Founded: 1980
Hawaii state license: C-23338
It was a strong year for Shafer's Roofing Inc.: The company had a major leap in revenue, and its CEO, Robins, was elected to head the Roofing Contractors Association of Hawaii (RCAH) for 2013. Shafer's had revenues of more than
$3 million in 2012, up from $2.4 million the previous year. It also placed in the annual Top 10 rankings, taking the
No. 9 spot. Top 10 profile for Shafer's Roofing.

5) Surface Shield Roofing Co. 21%

CEO/President: Shon Gregory
Specialty: Coatings, asphalt shingle, metal roofs
Founded: 2006
Hawaii state license: C-28235
Last year Gregory predicted, correctly, that 2012 would be "another productive year" for Surface Shield. Indeed, the full-service roofing company posted an impressive increase in revenue, from $3.04 million in 2011 to $4.03 million in 2012. And, once again, Surface Shield has placed in the annual Top 10 rankings, grabbing the No. 7 spot. "As a business owner I love to see our workforce grow and take pride in employing hardworking honest people," Gregory says.

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