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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Jan 29, 2024 - FHWA Provides Funding for Disaster-Damaged Roads, Bridges
                                  • In January, the US Federal Highway Administration (FHWA) announced $729.4 million in funding to assist states in repairing roads and bridges damaged by natural disasters, according to Construction Dive. States can receive reimbursement funding for repairs following declared disasters through the FHWA’s Emergency Relief program. The funding can also be used to make infrastructure more resilient amid the rise in extreme weather and fire events. The added Emergency Relief funding, which is included as part the Infrastructure Investment and Jobs Act – supplements federal, state, local, and tribal repair programs.
                                  • Demand for building design services was flat in December compared to the prior month, according to a January report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) rose to 45.4 in December from November’s reading of 45.3. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries fell to 53.1 in December compared to 56.9 in November, and the index for the value of new design contracts increased to 50.0 from 48.1. The AIA’s Chief Economist, Kermit Baker said, “Billings at firms declined for eight months of the year, and the last four months saw this overall weakness accelerate. Fortunately, project backlogs at firms eased only slightly through the year despite the overall reported softness in billings.”
                                  • While merger and acquisitions (M&A) activity in the engineering and construction (E&C) sector continues to face challenges in 2024 - including high interest rates and overall economic uncertainty - opportunities remain, especially in certain well-positioned pockets of the E&C sector, according to a recent report by PwC. Much of the commercial real estate sector faces ongoing headwinds, including slugging project demand, looming refinances, and weak office occupancy. However, firms with exposure to the infrastructure market - particularly in areas including transportation, engineering services, and power and telecommunications – are increasingly attractive to investors.
                                  • The value of US commercial construction starts is expected to be mixed in 2024, depending on project type, according to a recent forecast by Dodge Construction Network. Marking a potential record level of activity for the sector, manufacturing construction will rise 16% to $112 billion in 2024, supported by the CHIPS and Science Act and the Inflation Reduction Act. Amid a pullback in planned investments by major warehouse builders Walmart and Amazon, the value of warehouse construction is expected to decline 11% in 2024 to about $44 billion. Low occupancy and weaker demand will reduce office construction spending to about $37 billion in 2024, down 6% compared to 2023. Office projects will be mostly confined to alterations to existing buildings. Speculative office construction, where offices are built before securing a tenant, has become less common.
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