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 570 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 37 workers and generates about $32 million annually. The average asphalt roofing products manufacturer employs about 100 workers and generates about $127 million annually.
- The asphalt paving products manufacturing industry consists of about 460 firms that employ 17,300 workers and generate about $15 billion annually. The asphalt roofing product manufacturing industry consists of about 110 companies that employ about 11,300 workers and generate over $14 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 Firestone Building Products (Bridgestone). Large firms that manufacture asphalt paving products include Vulcan Materials, Axeon Specialty Products, 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
Apr 2, 2024 - Steady Industry Growth
- The asphalt product manufacturing industry is expected to experience steady sales growth in the coming years after posting negative growth in 2023. The industry’s year-over-year sales dropped to -5.8% in 2023 after rising 4.6% in 2022, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales are projected to rise 5.5% in 2024, then see flat but steady average annual growth of about 4.8% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- The Department of Energy’s (DOE) Industrial Efficiency and Decarbonization Office (IEDO) recently announced $83 million in funding for applied research, development, and demonstration projects for industries that are among the most challenging to decarbonize, including asphalt pavements. Production of infrastructure materials (including asphalt pavements, cement and concrete, and glass), chemicals and fuels, food and beverage, iron and steel, and forest products account for about two-thirds of emissions from US manufacturing. The IEDO hopes to fund development projects for asphalt paving mixtures that use low-carbon raw materials and are more durable at lower temperatures.
- In March, the Federal Highway Administration (FHWA) announced a proposal to halt a 40-year-old policy of offering waivers to the agency’s Buy America requirements for manufactured goods used in highway projects funded by the federal government, according to Construction Dive. The Buy America initiative began in 1983 to incentivize domestic production of manufactured products used in federally funded projects. The waiver program allowed contractors variances in cases where a lack of available domestic goods could slow or halt projects. In addition to its proposed rescinding of the Buy America waiver, the FHWA issued a request for information (RFI) regarding domestic availability of manufactured goods commonly used in FHWA-funded projects. The RFI will help create standards for manufactured products included in Buy America requirements, which contractors have often complained are unclear. The comment period through the RFI will be open through May 13, 2024.
- The total value of construction starts decreased a seasonally adjusted 8% in February from January, according to Dodge Construction Network. The drop was led by a 16% decline in nonresidential building spending. Within the nonresidential building segment, the value of commercial construction starts was off by 3% in February amid fewer warehouse starts, and institutional projects saw a 19% decline amid weakness in the transportation and education buildings segments. Nonbuilding construction starts were off by 3% in February as a 13% gain in utility and natural gas projects, and a 13% rise in miscellaneous nonbuilding starts were not enough to offset a 17% drop in highway and bridge projects, and an 8% decline in environmental public works starts. Residential construction starts fell 2% in February as single-family saw a 5% gain but multifamily was down by 12%. Dodge Construction Network chief economist Richard Branch said, “Construction activity was hit hard by higher rates and more restrictive credit standards. Starts struggled over the past several months as the lagged effect of higher rates impacted projects moving forward through the planning process. Additionally, the significant deficit of skilled labor led to further delays – especially in the manufacturing sector. While optimism should prevail in the second half of the year as the Federal Reserve begins to cut rates, some sectors like commercial, will make little headway over the remainder of the year.”
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