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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 22, 2022 - Civil Contractor Optimism Softens
                                  • Business optimism among civil construction contractors and engineers moderated in the third quarter of 2022 compared to Q2, according to The Civil Quarterly released by Dodge Construction Network, Infotech, and Hexagon in October. About 53% of civil contractors surveyed in Q3 said they expect their revenue to increase over the next 12 months, which was down from the 66% who had the same expectation in Q2. In Q2 2022, 51% of civil contractors felt their profits would rise over the next 12 months, but those expecting rising profits fell to 45% in Q3. Among civil contractors who expect revenue and/or sales to drop over the coming year, 60% believe an economic downturn will result in fewer private projects. More than 90% of survey respondents said their projects have been affected by rising construction materials costs.
                                  • Labor shortages in construction and related industries could blunt the impact of the Infrastructure Investment and Jobs Act (IJJA), according to a report released by consulting firm McKinsey in October. McKinsey estimates that by 2028, the contractor and subcontractor jobs shortfall could reach more than 160,000. The construction sector already suffers from a prolonged labor shortage, and other spending packages – including the CHIPS Act and the Inflation Reduction Act – will create even more demand for jobs in construction and related industries. To address the projected shortfall, McKinsey suggests recruiting among veterans and the formerly incarcerated, beginning apprenticeships and vocational training at younger ages, and upskilling workers from other fields.
                                  • Once a sleepy category for private equity (PE) investors, family- and founder-owned asphalt paving and maintenance firms are drawing PE interest, according to The Deal. The industry is fragmented, and some PE firms are buying regional asphalt paving firms to build businesses of scale. Investors are attracted by diversified customer bases, recurring revenue, recession resistance, EBITDA margins between 15% to 25%, and an unleashing of federal infrastructure dollars from the IJJA. If private equity is successful in concentrating the asphalt paving industry, it could undercut the pricing power of asphalt manufacturers.
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