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 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
Jun 3, 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 4.2% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- In May, the National Asphalt Pavement Association (NAPA) released its latest report on reclaimed asphalt pavement (RAP) used in road construction. The most recent data (collected by NAPA in 2022) show that 93% of RAP was used to construct new roads, and the remainder went to other types of civil construction projects. Since NAPA began tracking the data in 2009, RAP usage has increased more than 75%. Over the same period, the use of RAP in pavement projects has eliminated the use of nearly 30 million barrels of asphalt binder and nearly 94 million tons of aggregate. The rise in RAP usage has kept more than 68 million square feet of reclaimed asphalt out of landfills.
- New single-family home sales decreased 4.7% month-over-month and declined 7.7% year-over-year in April 2024, according to the US Department of Commerce. April’s new home sales came in lower than expected at 634,000; a group of economists polled by Reuters expected a total of 679,000 single-family sales. High interest rates and home prices have led to a weakening of the US housing market. The median home price in May was $433,500, down 1.4% from April but up 3.9% compared to April 2023.
- The total value of US construction starts increased 6% in April from March, according to Dodge Construction Network. The April gain was led by nonbuilding starts, which were up by 17%, as a 20% rise in miscellaneous nonbuilding starts and an 8% increase in highway and bridge starts offset a 34% decline in utility and natural gas starts. In the nonresidential building segment, manufacturing project starts doubled compared to March levels. April’s institutional starts rose 16% amid an increase in healthcare and transportation starts. Commercial construction starts dropped by 1% due to weakness in the parking and warehouse markets. Residential starts were down 1% in April as a 13% rise in multifamily was not enough to offset a 7% decline in single-family. Dodge Construction Network chief economist Richard Branch said, “The rebound in starts in April was certainly good news for the sector. While the uncertain timing of Fed interest rate cuts is causing concern, developers and owners are feeling reasonably confident that end-market demand will sustain project starts in some sectors. While risk remains in the sector for interest rates, labor, and material prices the value of projects in planning has been reasonably stable indicating future confidence.”
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