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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                                  Coronavirus Update

                                  May 16, 2022 - Road-Building Trade Group Opposes Gas-Tax Holidays
                                  • The American Road & Transportation Builders Association is lobbying lawmakers in Washington DC to oppose gas-tax holidays or other efforts to reduce taxes on gasoline, according to The Wall Street Journal. Politicians on both sides of the aisle on the state and federal levels are under increasing public pressure to provide relief to consumers amid skyrocketing gas prices. Fuel costs were already on the rise when Russia’s invasion of Ukraine and resulting sanctions by the US and its allies upended global energy markets. Opponents to gas-tax relief argue it could reduce funding for infrastructure spending and undermine the impact of the $1 trillion bipartisan infrastructure law passed in late 2021.
                                  • The US Chamber of Commerce’s Commercial Construction Index decreased to 65 for Q4 2021 from 66 for Q3 2021. Two of the three key drivers of the Index, revenue and new business confidence, also fell. One key driver, backlog, improved slightly. The most notable development in the current quarter is a reduction in revenue expectations, which declined from the previous quarter for the first time since the pandemic began. Contractors also report continuing concerns about inflation: the cost of skilled labor and the fluctuating costs of materials this quarter remained very high.
                                  • Demand for industrial warehousing space is driving demand for asphalt paving of access roads and parking lots. “They cannot build them fast enough,” Britt Taulbee, vice president of commercial asphalt paver Byrne & Jones, said of the demand for industrial spaces. Industry experts say that the pace will only quicken, especially as the current global supply chain issues prompt companies to explore adding local warehouses for stockpiling supplies.
                                  • Manufacturers of asphalt paving and roofing materials increased their prices 16.8% year over year in April 2022. The cost to manufacture asphalt products is affected by the price of oil, a major feedstock. Oil prices were rising before Russia invaded Ukraine and have since gone even higher. The spot price of West Texas Intermediate (WTI) crude was $106.69 for the week ending May 6. When the war began, the spot price for WTI crude was about $92.
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