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
Oct 4, 2024 - DOT Report: Less Than Half of IIJA Spending Announced
- According to a recent report by the US Department of Transportation (DOT), only 40% of the $550 billion in new spending funded through 2021’s Infrastructure Investment and Jobs Act (IIJA) has been announced, suggesting a lag in progress. The funds provided through the IIJA will be available until they are spent, so the funding could go beyond the law’s five-year scope. However, securing IIJA funding is cumbersome, as it flows from more than 400 programs through federal, state, and local entities. Analysis of White House data by CNBC suggests the bulk of IIJA funding has gone to road and bridge projects, followed by rail, broadband, power, and water projects. According to the DOT report, IIJA funding has been announced for 10,200 bridge projects, 1,000 airport projects, 500 port and waterway projects, 170 rail projects, and 11,200 public transit projects.
- The total value of US construction put in place fell 0.1% in August 2024 compared to the prior month, according to the US Census Bureau. Residential spending declined 0.3% and nonresidential spending increased 0.1%. In the nonresidential buildings segment, growth was led by communication, which saw growth of 1.3%. Amusement and recreation spending increased 0.9%, and lodging spending rose 0.8%. Spending on public safety projects grew by 0.6%, and healthcare spending rose by 0.1%. Construction spending for office, manufacturing, and transportation each rose 0.1%. Commercial spending fell 0.5% in August, while educational and office spending fell 0.2% and 0.1%, respectively. Spending for highway and street projects increased 9% in August over July.
- US spending for highway and street construction in 2024 is expected to grow by about 8%, according to FMI’s third-quarter 2024 North American Engineering and Construction Outlook. Supported by increased government funding, highway and street construction spending is well above historical norms. While funding from the Infrastructure Investment & Jobs Act is scheduled to expire in 2026, FMI expects another round of fresh funding as temporary and grant projects are either extended or made permanent. Bridge investments are forecast to account for a majority of highway, bridge, and street funding through the end of 2024. Highway and street spending is forecast to rise 7% in 2025 and 5% in 2026 before tapering off to 2% growth in 2027 and 3% in 2028.
- 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.
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