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Last week, I spoke to a room full of independent roofing and siding distributors at NEMEON. The conversation was candid, grounded, and far more hopeful than the headlines would suggest.

Because yes, the construction and roofing industries are changing fast.

Consolidation is accelerating. National players are centralizing what was once local. Platforms are pushing digital-only ordering. Private equity is optimizing for scale, efficiency, and margin. Technology is advancing faster than ever.

But here’s the strategic mistake I see over and over again:

When the game changes, many companies respond by copying whoever looks most “advanced.”

That instinct is understandable. It’s also often wrong.

The Game Shifted. So Must Strategy.

Disruption doesn’t eliminate advantage. It redistributes it.

The companies that lose are usually the ones who try to fight the new game using the old definition of success. They optimize what used to matter instead of asking what matters now. And ironically, in doing so, often abandon the “table stakes” capabilities that are about to matter more than ever before.

The companies that win do something harder and smarter.

They zig when others zag. They lean into what others abandon.

Automation Without Accountability

As companies scale, they almost always make the same tradeoff.

They invest heavily in technology. They standardize processes. They remove friction.

And in the process, they quietly remove accountability.

Digital platforms are efficient but impersonal. Algorithms are scalable but indifferent. Systems process orders but they don’t own outcomes.

This is the gap independents can win.

Not by rejecting technology. But by using technology in service of humans, not as a substitute for them.

When something goes wrong — and something always goes wrong — customers are left navigating menus, portals, and policies instead of people.

Embrace What Others Abandon

As companies grow, they abandon things that don’t fit systems. They abandon:

  • Edge cases
  • Exceptions
  • Special orders
  • Deep local inventory
  • Human judgment
  • Face-to-face problem solving

Not because these things lack value but because they’re hard to manage at scale.

That’s exactly where independent advantage lives.

What looks inefficient to headquarters is often invaluable on a jobsite. And as other players draw toward technology and scale, those “inefficient” activities can become scarce differentiators.

Stocking the unpopular color. Taking the special order others refuse. Rerouting a truck at the last minute. Answering the phone when a crew is under pressure.

These aren’t inefficiencies. They’re strategic choices.

And they matter more, not less, in a world that’s becoming increasingly automated.

The Pattern Repeats

This isn’t unique to distribution.

BlackBerry originally seized on text networks being abandoned as telecoms moved from pagers to 1G and 2G smartphones. It later optimized brilliantly around what it already did well, such as keyboards, security, and enterprise IT. But when the market shifted, it doubled down on existing capacity instead of embracing a new definition of value.

T-Mobile did the opposite. It leaned into customer frustration, transparency, and retail experience, all areas competitors had abandoned as “messy” and unscalable. They didn’t outspend rivals. They outthought them. This pivot is just one reason T-Mobile is on the Outthinker List.

Retailers tell the same story.

Circuit City optimized for efficiency, standardized stores, and removed commissioned experts. Best Buy doubled down on human advice and service.

One automated away accountability. The other leaned into it.

Only one survived.

Scaling Humanity on Purpose

Even companies built on technology eventually rediscover this truth.

Starbucks didn’t win by having the best coffee machines or the fastest transactions. It won by creating a consistent human experience, like names on cups, familiar faces, and a sense of belonging.

When Starbucks over-rotated toward efficiency and lost that human touch, growth stalled. When it reinvested in baristas, training, and in-store experience, performance followed.

The lesson isn’t “avoid tech.”

The lesson is: tech without humanity erodes trust. And tech without accountability destroys loyalty.

Proximity Is the Real Advantage

Independent distributors don’t move early because they’re bigger. They move early because they’re closer.

Yes, physically closer to jobsites and crews. But more importantly, closer to the truth of what’s happening in the market.

That’s what I mean by proximity: not just location, but signal.

Big companies often have more data, but less reality. They see trends after they’re aggregated. Proximity lets you see change while it’s still forming — one phone call, one truckload, one jobsite problem at a time.

That advantage shows up in four questions scaled competitors struggle to answer:

  • What do we see earlier than others because we’re close to the work? Demand shifts, inventory pressure, urgency in a contractor’s voice.
  • What do we know that never shows up in dashboards? Stress, trust, risk, and which jobs are one delay away from trouble.
  • What problems do customers avoid because they call us first? Idle crews, missed inspections, jobsite downtime that never becomes a ticket.
  • What would we notice if we paid closer attention to what we see every day? Conversations, exceptions, patterns hiding in plain sight.

This isn’t intuition versus data. It’s front-line context versus back-office abstraction.

Proximity lets you sense needs earlier, and sensing early is how you move early.

Tech Plus Humans Is a Two-Front Battle

The strongest competitors don’t choose between technology and human judgment. They deliberately compete on both:

  • They use technology to reduce friction. And people to own outcomes.
  • They automate what’s repeatable. And elevate human judgment where exceptions matter.
  • They make it easy to do business. And reassuring when something goes wrong.

This creates a two-front battle most competitors can’t fight.

To match the technology, they must add humanity. To match the humanity, they must unwind the systems that made them efficient.

That tension is the trap. It’s not about being digital or human. It’s about being deliberately both in a way others can’t replicate.

Small Moves, Outsized Impact

Here’s the good news: this doesn’t require massive investment.

Most innovation isn’t invention. It’s recombination.

Bundling products with service. Turning conversations into offerings. Formalizing what you already do informally.

What felt “crazy” five years ago is often just cheap software today. Tools are easier. Integration is simpler. Younger employees see possibilities others miss.

You don’t need to overbuild. You need to experiment, intentionally.

The Strategic Choice Ahead

Every industry is being reshaped by the same forces: consolidation, platforms, automation, and scale.

And in every industry, leaders face the same choice.

You can chase what looks advanced, like more technology, more efficiency, more standardization. Or you can decide, deliberately, where not to follow the crowd.

The companies that win don’t reject technology. They use it with intent. They automate what’s repeatable, and they protect human judgment where accountability matters. They build systems that help good ideas surface and spread, and cultures where someone owns the outcome when things break.

That’s how strategy stays alive.

The conversation at NEMEON was simply one example of this pattern playing out in real time. Independent distributors are feeling these pressures earlier and more intensely, which makes their choices easier to see. But the lesson travels far beyond roofing.

Whenever the game changes, advantage doesn’t disappear. It moves.

It moves toward organizations that:

  • embrace what others abandon
  • use technology without surrendering accountability
  • scale humanity instead of automating it away

Those organizations don’t just survive disruption. They outthink it.

To join the conversation and expand your strategy skills, visit Outthinker.com today.