This new SBI report reveals astonishingly that roofing product manufacturing managed to grow modestly from $10.6 billion in 2007 to $10.9 billion in 2008, a gain of three percent. This is credited to increased asphalt pricing in 2008 and a slowdown is on the way. SBI forecasts a significant contraction in 2009 of about 16% caused by declines in average selling prices and soft end-user demand before a slow recovery begins.
The report contains detailed data and analysis describing the U.S. market for roofing product manufacturing. The report examines the value of the market, various components of trade, an analysis of economic factors affecting the industry, and end-user market analysis.
This report further explores housing related indicators, product and market trends with expanded coverage of green product trends, and competitive issues affecting roofing manufacturing. The report also profiles major marketers, along with manufacturer strategies used to maximize growth and profitability.
Markets included are:
Despite the unraveling of the U.S. economy in 2008, SBI estimates the U.S. market for roofing products grew modestly from $10.6 billion in 2007 to $10.9 billion in 2008, a gain of three percent. However, the gain comes after a 13% decline in 2007 and leaves the market well below its 2006 peak of $12.1 billion.
Green Roofing Products Market Growing, Influencing Innovation
The $789 billion American Recovery and Reinvestment Bill of 2009 includes serious government investment in energy efficiency building efforts, such as $16 billion to repair and make energy-efficient retrofits for public housing; $6.7 billion for renovations and repairs to federal buildings; and $6.9 billion for local and state governments to become more energy efficient.
Asphalt-shingles, which are petroleum-based, are giving way to old-school materials such as slate, clay, or wood shake, which are beautiful and being repositioned as environmentally friendly and to newer materials and innovations such as metal, green roofs, and solar shingles.
Cool roofs are a fast-growing sector of the roofing industry now getting attention across the country. The terminology covers several roof types, including cool roof coatings or paints which can be applied to existing roofs; green roofs, which are more garden than roof; and inherently reflective roofs such as those made of thermoplastic white vinyl which can reflect 80% or more of the sun’s rays (versus an asphalt roof which only reflects between six and 26%).
Metal roofing, although pricier than many other types of roofing, is an exciting option as it brings together so many meaningful end-user benefits. Metal roofing materials are often recycled products and in turn can be recycled at the end of the usage lifespan.
Unlike the large and unattractive panels solar roofing systems of the past, newer solar technology is now embedded into the roof tile. They’re not only dual function, but design and technology have converged with photovoltaic-coated metal-roofing materials in custom styles and colors. The industry is optimistic about opportunities in this arena.
Market Insights: A Selection From The Report
Asphalt, Metal Make up 91% of U.S. Roofing Products Market
Accounting for 70% of the U.S. market in 2008, SBI estimates asphalt shingle and coating materials grew at a CAGR of two percent during the 2004-2005 period to reach $7.6 billion though it remained below its 2006 peak of $8.3 billion. Sheet metal roofing, which includes drainage equipment, also posted a two percent CAGR for the five-year period, but was also below its 2006 peak of $2.6 billion. Sheet metal roofing accounted for approximately 21% of the U.S. market.
Green Influencing Innovation
Organizations and programs such as the U.S. Green Building Council (USGBC), the ENERGY STAR program of the U.S. Environmental Protection Agency and the U.S. Department of Energy are organizing the concepts of green building and materials in ways that will allow this emerging market to move forward in a coherent fashion. The proposed $789 billion American Recovery and Reinvestment Bill of 2009 includes serious government investment in energy efficiency building efforts, such as $16 billion to repair and make energy-efficient retrofits for public housing; $6.7 billion for renovations and repairs to federal buildings; and $6.9 billion for local and state governments to become more energy efficient.
U.S. Roofing Market Weathers Economic Storm with Steady Projected Progress through 2013
New York, March 3, 2009 - The unraveling of the American economy wasn’t enough to prevent the U.S. market for roofing products from growing modestly with a gain of 3% from roughly $10 billion in 2007 to almost $11 billion in 2008, notes industrial market research publisher SBI in the all-new report, Roofing Materials in the U.S., 2nd Edition. Growth was primarily attributed to sharp increases in average selling prices of asphalt shingle and coating materials, which accounted for 70% of the U.S. roofing market in 2008 and consequently lessened any volume declines in other roofing categories.
Long-term expectation for the roofing industry is sunny as the market’s growth is projected to correlate with the inevitable recovery of the economy as a whole. SBI ultimately forecasts that the U.S. roofing market will grow at an unsteady compound annual growth rate (CAGR) of 2% through 2013 to reach almost $12 billion.
“Moderate recovery is expected to begin in 2010, and then accelerate in 2011 and beyond as demand picks up, prices increase, and production and supply is constrained. By 2013, totals should approach the market’s 2006 peak of $12.1 billion, which was achieved shortly before the housing market declined and the economy first showed signs of slowing,” says Shelley Carr, associate publisher of SBI.
Expectations for 2009 are not as promising. SBI forecasts a contraction of approximately 16% with market totals slightly above $9 billion for the year due to anticipated declines in average selling prices and soft end-user demand.
Roofing Materials in the U.S., 2nd Edition features detailed data and analysis describing the U.S. market for roofing product manufacturing. The report examines the value of the market, various components of trade, end-user markets, and economic factors affecting the industry. This edition also explores housing related indicators, product and market trends with expanded coverage of green product trends, and competitive issues that impact roofing manufacturing.
SBI (Specialists in Business Information) publishes research reports in the industrial, energy, building/construction, automotive/transportation and packaging markets. SBI also offers a full range of custom research services.