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OLSSON

Olsson Roofing Company, Inc

Then…Now…and Beyond

William C. Glenn, former President and CEO

The Early Years

In 1914, after arriving from his native Sweden, Nils Olsson founded Olsson Roofing Company (ORC) in St. Charles, IL. Shortly thereafter, he relocated the company to Aurora where we have grown on the same city block for over 90 years. I remember Mr. Olsson as a physically diminutive gentleman, but as a giant where customer satisfaction and attention to detail were concerned. My experiences were first hand since I began mowing his lawn at the age of eight.

In those early years, most low-sloped commercial roofing was built-up roofing (BUR) and it was installed directly over sloped wooden roof decks. Materials were hoisted to the roof powered by horses in harness. Roll goods were made from saturated cotton and similar materials, which were known as rag felts. The kettles to heat the bitumen were wood-fired, usually by construction wastes and used kegs broken down after each job. These were then transported to the next project on a truck because the kettles were without wheels and much like huge cauldrons of a witch’s brew.

Projects were few and far between, and competition was keen. I recall seeing a 1922 billing of a project 70 miles from Aurora where the total invoice was $92.47, and every nail was itemized. It was not uncommon in those days to send the crews out for several weeks at a time to complete a project or literally replace the roofs in a small town. To get a sense of our size, Olsson’s crews totaled 10-12 men at best, and our annual revenues were less than $30,000.

My father, William D. Glenn, entered the industry as a salesman/roofer in 1932 after nearly starving to death as a life insurance salesman during the Great Depression. It was an experience that, as a young man, taught him much about salesmanship, cash flow and the value of relationships. He learned the trade working on the roof with crews at $2.00 per day, and selling jobs on alternate weeks on straight commission with Mr. Olsson’s tutelage. His training program was a model of results and rewards.

During the late 1930’s and into WWII, jobs were scarce and wages low, so very little rooftop equipment as we know it today came into play. Materials also were very scarce and innovation was often at a premium. I recall the story of one project that our company completed over a local war-time munitions plant in 1943. The roofing system consisted of two layers of 1 ½” fiberboard insulation (which actually served as the structural decking), three plies of asphaltic bitumen rag felt, and a coal-tar pitch and gravel surface. An engineer’s and specifier’s “no-no” by today’s standards, but a system designed and defined by available materials. However, it should be mentioned that this roof system performed for 45 years until ORC replaced it in 1988. While we wouldn’t recommend anything like that today, I often question if some of the newer, leading edge products are any riskier than this hybrid of the past.

Post War Transition and Expansion

The post war and 50’s were a period of growth for the construction industry as well as for ORC. In 1948 my father replaced Mr. Olsson as President and the owner of the company. That succession was a positive event because of the loyal support of the many customers, creditors, employees and family who were committed to the successful continuation of the organization. Everyone worked hard to make ORC go forward and we did.

This also was the innovative era of gypsum and steel roof decks. Steel required roofing insulation to bridge the flutes with insulation values much lower than we are familiar with today. Both of these decking systems provided substantial challenges in the form of suitable securement of the roofing systems to the substrate. It was also the period of the dead level roof. These were roofs that, in contrast to most of the earlier low-sloped designs, had little consideration for positive drainage. Besides some structural cost reductions, a couple of design justifications espoused at that time were that ponded water on a roof helped to cool a building in hot weather and also helped prevent U.V. aging on the surface of the roof.

As if the introduction of roof insulation and dead level or ponded roofing were not sufficient performance challenges, the quality of built-up roofing products-the bitumens and roofing paper replacing “felts”-became suspect. Traditional supplies were directed to other more profitable areas of the economy or displaced by lower priced substitutes.

With the combination of those design and product conditions, and the post war attitude of charging the customer more and listening to his needs less, the BUR industry was entering the early stages of a drift to mediocrity which would set the stage and redefine roofing for years to come. Delivering a good, serviceable product and customer satisfaction was a monumental management challenge for the ethical roofing contractor.

During this period Olsson purchased its first mechanized hoists and conveyors for material movement, as well as rooftop equipment, to improve quality and productivity. We now had 25-30 men on the payroll.

New Challenges, Technology and More Change

For ORC the late 60’s and 70’s brought about new challenges of growth, quality, reputation and change. We worked hard to create a new organization dedicated to professionalism and business ethics before such buzz words were popularized by educators and consultants. We had some setbacks and our share of victories, but when Mr. Glenn (my father) retired in 1972, we were well on our way to defining ORC as an emerging leader in the local industry and the community. At this point, we further invested in equipment such as day tankers, cranes and even some electronic office products. Our payroll continued to grow to 45-50 technicians. We outgrew our old office and moved into the house next door. We were in the process of differentiating ourselves as a roofing contractor and defining a quality company by today’s standards.

From my perspective more changes happened in the 70’s to reshape our industry than in all of the previous years of roofing. Continuous BUR product and system troubles opened the door to new technologies known as single ply (SP), modified single ply and modified bitumen (MB). Marketed on “clean and modern”, and on long term warranties, these products aggressively assumed 50% of the low-sloped market and were represented, at one point, by over 150 manufacturers with a wide range of experience in moisture protection. Many new entrants were attracted by the huge market potential of the roofing industry. Problems continued, but the better of these technologies created new opportunities to solve design and system challenges that BUR had been unable to resolve satisfactorily.

The ’74 oil embargo also added a new twist which signaled the change in thinking about insulation and energy savings. Within a relatively short period of time new roofing insulations were being installed with R-values (a term used to identify the thermal resistance of insulation) of 10, 20 and 25 which were 10 to 15 times greater than those used in the past. With these came improved mechanical fastening technologies to satisfy fire and wind uplift concerns. Designers of new roofs, and the industry, finally faced up to the necessity of positive drainage, and the ponded roof, thankfully, had reached the end of its life cycle. The development of tapered insulation systems also provided a means to correct the old dead-level roofs installed in the prior era.

During this period, asbestos reinforced roll goods were removed from the USA marketplace. In the place of asbestos, a number of substitute roll goods failed. These were replaced by an extremely serviceable product known as fiberglass. Glas restored the quality and performance of traditional hot roofing and BUR would regain and stabilize its marketshare. So while it was challenged, BUR roofing and roofers improved their products and systems, and some very good thermoplastic and rubberized single ply and modified bitumen products were introduced to the market. The development and evolution of three excellent alternative systems, which could be geared to project requirements, were in the making.

The Two Faces of the 80’s

Hyper-inflation, and with it a severe constriction in the construction industry, defined the early ‘80’s. This was a period of survival and a test of everyone’s reputation and their relationships in the market. Entry and exit of manufacturers and roofing contractors in and out of the market was common. By the end of the decade, the number of viable roofing manufacturers had been reduced by about one half, while the number of contractors in the marketplace seemed to double. This dynamic, along with long term warranties, set up the environment for a buyer’s market with a primary focus on price, as roofing systems and contractors were increasingly interpreted as commodities. Although generally well kept secrets, product, system and contractor failures led to significant financial losses for unlucky customers across the USA.

In the mid-80’s, and through the rest of the decade, the robust real estate economy led to more new low-sloped roof tops, while scheduled replacement of roofs installed in the post-WWII era expansion, fueled growth in the replacement market. With this upturn in business came more government intervention and regulation into the construction industry in the form of OSHA, EPA, DOT and similar agencies. These regulatory agencies were created because of a need for a long overdue commitment to health and safety on the construction site.

During this later period, ORC invested heavily in people and equipment, selectively installed and continued to monitor new single-ply and modified bitumen systems, and quietly established itself as a regional leader in the low-sloped sector. As ORC grew, we continued to focus on quality products and service by our commitment to training, technology and communications. We developed a team strategy and the capacity to successfully manage different types and sizes of projects, and our workforce continued to increase. We built a new office building and expanded our warehouse and maintenance facilities to our present site on Lake St. on the south end of town. ORC became an even closer friend of the local bank, manufacturers and suppliers.

The 90’s and Beyond

Low-sloped roofing is reaching a level of maturity in the 90’s. However, rather than developing another generation of new products, systems and technology, the industry is focused on refining and improving what is already in-place. Supply continues to outpace demand, and the consolidations of manufacturers, products and systems are becoming common occurrences. While prices throughout the industry are extremely competitive, all products, systems, warranties and contractors are not necessarily equal. The customer who benefits the most from this environment is the one who best discerns value. Because the horror stories of roof failures and contractor defaults of earlier eras still exist today.

ORC is currently positioned as a leader in low-sloped roofing in the N.E. Illinois market. Our people always remind each other that a leader is everyone’s target and that we must keep moving and improving to stay on top. We understand that our reputation is largely judged by what is in the pipeline and by our most recently completed projects. We are proud of the numerous quality awards that we have earned in the industry and how longevity and service ultimately translate into life-cycle value for our customers and enhance our long-term reputation.

Our management, staff, shop and field personnel work together as a team to perpetuate the values and goals that were established in 1914 and have been carried on by the many valued employees of ORC over the years. Our service and production departments continue to grow, supported by an administrative staff and management team dedicated to customer satisfaction. We are already looking forward to the year 2014 which will mark our 100th year of providing roofing excellence. The people at ORC will continue to be guided by our “Mission and Vision Statements” and will always be committed to integrity, continuous improvement, and, most importantly, to our customers and the communities we serve.

If you are already a customer of ours, you know you can rely on Olsson Roofing Company for roofing excellence. We value and appreciate your loyalty and support. If ORC is new to you, we would like the opportunity to win you over as one more satisfied customer. For, as our Mission Statement stresses, we always want Olsson “to be the customer’s first choice in the marketplace.”