Asphalt Product Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 560 asphalt product manufacturers in the US produce asphalt and tar paving mixtures and blocks, asphalt shingles, roofing cements, and coatings. Asphalt paving mixtures and block account for more than half of industry revenue. Other key product categories include prepared asphalt and tar roofing and siding products and roofing asphalts and pitches, coatings, and cements.
Seasonality of Demand
The industry is subject to seasonal factors because road paving and roof installation activity occurs exclusively outdoors.
Material Cost Variability
The cost of asphalt, the primary material input to production for pavement and roofing products, is volatile and influenced by the trends in the global crude oil market.
Industry size & Structure
The average asphalt paving products manufacturer employs about 35 workers and generates about $33 million annually. The average asphalt roofing products manufacturer employs about 102 workers and generates about $137 million annually.
- The asphalt paving products manufacturing industry consists of about 455 firms that employ 16,100 workers and generate about $15 billion annually. The asphalt roofing product manufacturing industry consists of about 106 companies that employ about 10,800 workers and generate over $14.5 billion annually.
- Paving products account for about 56% of total industry revenue, while roofing products account for the remaining 44%. Paving product companies account for about 81% of the industry, while roofing products companies account for 19%.
- The industries are concentrated at the top; the top 50 asphalt paving product manufacturing companies account for 66% of industry revenue. The top 20 asphalt roofing product manufacturing companies account for 91% of industry revenue.
- Large firms that manufacture asphalt roofing products include Owens-Corning, GI-Holdings (GAF), and Holcim (formerly Firestone Building Products). Large firms that manufacture asphalt paving products include Vulcan Materials and Asphalt Materials.
- The biggest firms are vertically integrated and produce complementary or related products, such as asphalt, construction aggregates (crushed stone, sand, gravel), concrete, metal roofing, or building insulation.
Industry Forecast
Asphalt Product Manufacturers Industry Growth
Recent Developments
Dec 4, 2024 - Biden Administration Rushes to Spend Remaining IIJA Funding
- According to a White House fact sheet released in mid-November, only 47% of the $1.7 trillion in funding through 2021’s Infrastructure Investment and Jobs Act (IIJA) has been announced. The Biden administration is working to get the remaining dollars allocated before Donald Trump takes office, according to AP News. While some Biden administration officials worried that Trump could scale back or eliminate some Biden-era spending, pulling back IIJA funding could be difficult. The IIJA has benefitted many Republican-leaning states and districts, according to the Global Infrastructure Investment Association. Some industry observers doubt there will be any significant effort to pull back infrastructure spending.
- Total US construction spending increased 0.4% in October 2024 compared to September, according to the US Census Bureau. Residential spending rose by 1.5%, while nonresidential spending declined 0.4%. Within the nonresidential building construction subsector, growth in October was led by a 4% rise in spending on religious projects, followed by public safety (1.3%), and office (0.7%). All other nonresidential building construction segments either declined or were flat in October from September, including healthcare (-1.1%), commercial (-1%), educational (-0.6%), and lodging (-0.4%). Highway and street construction spending declined 0.8% in October compared to the prior month.
- New single-family home sales declined 17.3% month-over-month and 9.4% year-over-year in October 2024, according to the US Department of Commerce. October’s new home sales were the weakest in nearly two years as hurricanes and high interest rates kept some potential buyers away, according to Reuters. Mortgage rates at the end of October rose to 6.72%, tracking the rise in 10-year Treasury yields. Concerns about inflation are leading some market observers to expect fewer Fed rate cuts in 2025. President-elect Trump’s plans to increase tariffs on imports, primarily from China, Mexico, and Canada, are also raising inflation fears. More robust home price growth may erode demand further; October's median new home sales price was $437,300, up 2.5% from September and 4.5% higher than a year earlier.
- US spending for highway and street construction in 2025 is expected to grow by about 3%, according to FMI’s fourth-quarter 2024 North American Engineering and Construction Outlook. While funding from the Infrastructure Investment & Jobs Act (IIJA) for programmed highway projects is scheduled to expire in 2026, FMI expects another round of fresh funding as temporary and grant projects are either extended or made permanent. Highway and street spending is forecast to rise 3% in 2026, then taper off to 2% growth in 2027 before rising by 4% in 2028.
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