Contractor Corner - Metal Alliance

In this comprehensive interview, Nick Fedele, President of Metal Alliance, shares detailed insights about commercial metal roofing, business practices, supplier relationships, and industry trends.

Can you give us a quick background about your company and your history with them?

Metal Alliance was founded in '93, so about 32 years in business now. I bought the company 4 years ago from the founder, Rich Coachelli. We are a commercial contractor focusing on exterior envelopes, metal wall panels, and metal roofing. We don't touch flat roofing, although we work with a number of flat roofers hand in hand. We're based out of the Philadelphia market, covering the Eastern half of Pennsylvania, the State of New Jersey and down into the Baltimore, DC area. Rich, the former owner, is still very much involved. We've kept the core of the business the same, focusing on quality and really just nailing details in the field, and we've grown it a little bit since the acquisition and structured it for growth over the coming 10-15, 20 years.

What are your most common project types?

It's all commercial and industrial, almost no residential. We're a union shop, so you're typically gonna see things that have public funding of some sort - whether that's federally funded state, local universities, those types of things. We do a lot of standing seam roofs. We tend to lean towards the McElroy T-138 and 238, and now the Maxima. And we have a pretty decently sized wall panel business as well, which is something we're investing more in.

Can you tell us about any interesting recent projects?

We're actually doing one right now...it's a McElroy Maxima job for a drywall manufacturing plant. It's an old metal roof that's over a kiln that they use to bake drywall. We're tearing off the old Butler-style building and going back with R-seal, which is that walkable insulation product, and then putting a Maxima over the top. It's funky in the sense that there are some difficult details to work through and some complex logistics, but I'm excited about it. We've done a couple of these R-seal projects combined with the McElroy roof, and they tend to work out really well.

How big a role do suppliers play in your success, and how do you choose them?

Suppliers are an enormous part of our business. We're very selective about who we work with, and I think that's for good reason. There's only so much as an installer that you can control, and you need to have good partners that you're working with on the supply side. To number one, stand behind the product that they're selling, but also help you put together a solid package and sell the customer the right thing.

There are lots of inferior products out there, lots of inferior systems. There are systems that claim they do things that they really don't do. One of the reasons why we've gravitated so much towards McElroy is because I can say with a very straight face in front of any customer that we're dealing with a very reputable manufacturer. We're dealing with people who stand behind the products that they sell. They do what they say they're going to do.

Our reputation is one that has been built over the course of 30 years, but it's one that we can lose in 30 seconds. You're only as good as your last mistake. If we're expected to fulfill on a timeline and we can't get a supplier to fulfill, if we're expecting details to work out a certain way but they're poorly designed, if we're expecting a system to go together a certain way and it doesn't really come together that way in the field - those are all things that make us as an installer and a contractor really look bad. So we really put a lot of effort into selecting suppliers, building relationships with them, and then we like to stay loyal to that group.

Is your selling process getting easier or changing? What are you noticing about your ability to find and close new business?

There are a couple of different things that come into play. First, there's the level of maturity of our business - we've settled into a groove, being around for 30 years. We've evolved and changed some thought processes and approaches. And then there's the state of the economy, which is ever-changing as well.

With interest rates being so high, people are hesitant on the private side to really invest big dollars. Being in the metal world obviously poses a challenge when people are looking for low-cost. We are very rarely the solution there.

The sales process has changed. I don't know that I would necessarily say it's gotten easier or more difficult. Part of that is because we're shifting the way we approach things. We're iterating, learning lessons, reconsolidating who some of those suppliers are that we work with and trying to find where our real niche is.

What is the most common myth or misconception you hear from building owners about installing a roof?

We often see the expectation that metal is a lot more expensive than alternate options, one being flat roofing. When you're talking about an existing metal roof, it's very popular to go back with a flute fill and a single ply over the top. That's not a path we like - we stay away from that and tend to be pure metal guys.

The biggest misconception in that world is that single-ply is a cheaper alternative if you're looking at the short term - the next 5, 10 years. But if you're looking at a building that you're going to hold for a long period of time, the total cost of ownership actually comes out pretty close, if not more expensive, to go the non-metal route. And you're also introducing a whole host of other risks.

There's still a bit of a struggle in trying to get people to understand that message. Because on paper, when you put the two options side by side, there is a cost difference. But when you reorient your perspective, there's really not as big of a difference as you initially might think.

What makes you stand out in the industry? Why do customers choose you?

We can't stand change orders. I hate change orders. I know there are many contractors who will talk about how much money they've made on change orders and brag about that type of stuff. To me, there are change orders that are just natural to the business - when you're looking at a roof closed up and start taking that thing apart, there are things you're going to discover that nobody could have had insight into.

Our goal really is, we're gonna give you a number, that's the number, we're gonna stick to it, we're gonna get it done right the first time. We don't run change orders for change orders' sake. We don't price something out with the thought of, 'Hey, once we get on-site, we'll throw this roadblock up and say that's a change order’.

Hopefully, the only time we have to hear from you again in the future is when you have another project for us to do, not to come back and fix leaks or mistakes. It's about the quality and the reputation we have for quality and just being fair and honest with the numbers we put out there.

What changes do you see coming in the next few years in your industry?

Insurance rates are going up across the board, whether related to wildfires on the West Coast, hurricanes along the Gulf, or property in general. I know there have been some large pushes, particularly in Florida, with dropping insurance policies depending on roof composition and roof age.

My hope is that you're gonna see people look at metal as a hedge to some of those things. Yes, you're paying more now, but you're getting a much better product with much more longevity, better quality, and better warranties. If you're looking at the world in a more macro sense, those things should hopefully shine through.

How do you handle staffing and finding qualified people?

We're fortunate enough to be a Union shop. They're responsible for supplying a skilled labor force. They have an apprenticeship program and a training program. They're bringing people in, whether totally inexperienced, and putting them through training or bringing in experienced guys from the non-union world, where their training is more about sharpening the edges.

These are guys who this is their career choice. They're not the type that is going to leave and go do a different trade for 2 or 3 dollars an hour. This is their chosen career path. I would put our field crews up against anybody in the business. We have the best field staff out there, in my opinion, and that's largely due to being a union shop and our relationship with the union.

What equipment and capabilities set you apart?

A superpower for us is that we have a number of our own roll formers. We've got the ability to control our own destiny in that sense - we can control production, what size panels are coming out, when we're getting them. We can do them on-site if we need to.

We've also got our own full fab shop with breaks, shears, full welding setup, soldering setup - really anything you would look for in the metal world. We can control our own destiny. We often run into conditions you weren't expecting in the field, and we can turn around a solution within 24 hours at the latest. We keep a large stock of different materials in our shop, both flat sheet and coil side, different brackets and components.

How do you manage your website and online presence?

Most of our sales have come from just relationships. Our social media game is flat-out nonexistent, which is true and an area where we can improve. We did not have a website for the first 27-28 years. We've made gigantic leaps because we now have a website. The website is there, it functions, it's a place to point people. It describes who we are and what we do, but I don't think it's been fundamentally transformational in the way we run the business.

How do you ensure profitability in your jobs?

First and foremost, it starts with having a solid estimating team. We've developed that largely due to Richie and the prior ownership's philosophy of how to look at the world, take apart a job, and put a price together.

We're here to do profitable jobs, not just jobs for the sake of doing jobs. Revenue is great, but there's got to be enough money left to pay guys, pay for materials, pay for trucks, pay for rent, and pay for the office team. If your contractor is worrying about whether they will actually be able to pay their bills at the end of your job, there will be a corner cut somewhere. And the reality is, you may not see it today - you may see it 5 years from now, and it may wind up being catastrophic.

It's a full-blown team effort, top to bottom, left to right. Each day kind of stands on its own, but you have to keep watching your way through, keeping a close eye on man-days spent on a project and materials ordered versus what was priced out.

Listen to the episode with Metal Alliance on our podcast here.