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 580 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 34-35 workers and generates about $30-31 million annually. The average asphalt roofing products manufacturer employs about 94-95 workers and generates about $98-99 million annually.
- The asphalt paving products manufacturing industry consists of about 470 firms that employ 16,300 workers and generate over $14 billion annually. The asphalt roofing product manufacturing industry consists of about 110 companies that employ about 10,700 workers and generate over $11 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
Mar 23, 2023 - Federal Infrastructure Spending Boosts Road Building
- State and local government contracts for highway, street, and bridge building projects saw a significant increase in 2022, fueled by funding from the Infrastructure Investment and Jobs Act (IIJA). The total dollar value for all transportation project contracts increased by 25% in 2022 over 2021, and the number of contracts rose by 12.4%, according to the American Road & Transportation Builders Association (ARTBA). Of 39,500 transportation contracts awarded in 2022, 38,220 (more than 98%) were roadway related. The remainder was for transit and rail projects. The dollar value for highway, street, and bridge contracts in 2022 was more than $102 billion.
- The total value of US highway and street construction put in place declined by 1% in January 2022 compared to the prior month, according to the US Census Bureau. However, the value of US highway and street construction was up 16.3% compared to January 2022.
- Large construction firms are beginning to see funds from the Infrastructure Investment and Jobs Act (IIJA) flow to projects, according to Construction Dive. Sweden-based construction company Skanska recently reported that civil projects are a bright spot and that nonresidential construction is the only market where the outlook has improved compared to the previous quarter. In a recent earnings call, California-based Granite Construction noted that IIJA funds have reached the states, money for projects has been allocated, and bidding processes are underway. The CEO of US-based construction and engineering firm Jacobs recently remarked that the full impact of the IIJA and the Chips and Science Act and Inflation Reduction Act will kick in before the end of the year, boosting infrastructure, energy, and other growth sectors.
- Demand for building design services dropped in February, according to a March report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 48 in February from January’s reading of 49.3 in January. Any reading of 50 or more indicates growth in architectural billings. However, the pace of new project inquiries and new design contracts continued to improve. The AIA’s Chief Economist, Kermit Baker said, “The combination of an unsettled economy and high interest rates is causing investors and property owners to take a closer look at their plans for construction projects. While this is producing delays for some projects under design, architecture firms are reporting that prospects for future project work remain generally positive.” By major sector, billings index growth in February was mostly in contraction territory: mixed practice was 57.0, institutional was 46.9, commercial/industrial was 45.8, and multi-family residential was 46.2.
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