The Super Bright Future of Restoration Contracting

Climate change, the politically correct term for “global warming,” is upon us and no matter what side of the fence you sit on regarding its causes and solutions, one thing is certain – it is going to be really good for the restoration business.

If you’re in the restoration business, you can look forward to decades of increasing demand for your services at increasing rates of growth. There are three primary reasons for this:

  1. Global warming creates more extreme weather (i.e., hotter hots, colder colds, wetter wets and dryer dries) which translates to more broken pipes, wild fires and floods, all of which will be very good for the businesses that repair the damages from weather events.
  2. Buildings have been and continue to be built without enough attention to the permeability of the exterior envelops. Basically the walls do not breathe enough to prevent mold growth after extreme weather events. That fact, combined with changing weather patterns, means more buildings will need mold remediation in the future. One of the leading authorities in the building science discipline, Dr. Joe Lstiburek, predicted that mold remediators would be fully employed by failed building designs and construction defects for generations to come about 8 years ago at a restoration industry conference.
  3. Government subsidized property insurance policies on high-risk properties guarantee a steady source of work and funding for restoration firms.

Insurance companies also have a very bright future as a result of global warming. Due to global warming, there will be an increasing demand for insurance to cover the damages arising from the extreme weather events that the phenomenon causes. 

The insurance industry runs on a very simple business model: bring more premium in the front door than the claims payments going out the back door. Insurance companies make profits on the margin between insurance premiums taken in and the claims payments going out. The more things that get paid for through insurance policies, the more profit insurance companies stand to make.

To grow, insurance companies need more claims every year. Nothing could be better for property insurance companies from a business standpoint than global warming.

The insurance companies face two major challenges in global warming:

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281 thoughts on “The Super Bright Future Of Restoration Contracting

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