Roofing and Siding Contractors
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 32,000 roofing and siding contractors in the US install new roofs, replace old roofs, perform other roofing related services and install various types of building siding and finish materials. Roofing contractors may also provide roof painting, spraying, or coating services or install skylights. Siding contractors include firms that install gutters and downspouts. A company may offer both roofing and siding installation. Some companies offer related construction services, such as brick or stone installation and waterproofing services.
Seasonality And The Weather
Roofing and siding jobs are seasonal, with most projects occurring during months with temperate weather conducive to construction.
Dependence On General Contractors
Roofing and siding contractors depend on relationships with general contractors (GC) to secure work on large projects, particularly non-residential construction jobs and managed residential developments.
Industry size & Structure
The average roofing or siding contractor operates out of a single location, employs 7-8 workers, and generates about $1.5 million annually.
- The roofing and siding contracting industry consists of about 32,000 establishments that employ 245,500 workers and generate about $47 billion annually.
- Roofing contractors account for 72% of establishments and 86% of total industry revenue.
- Most roofing and siding contractors are independent firms and operate within a limited market.
- Large companies include Tecta America, CentiMark Corporation, and Flynn Group of companies.
- Single-family residential projects account for the majority of industry revenue.
Industry Forecast
Roofing and Siding Contractors Industry Growth
Recent Developments
Nov 14, 2024 - Multifamily Developer Confidence Mixed
- Multifamily developers’ confidence was mixed in the third quarter of 2024, according to the National Association of Home Builders (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) rose two points in Q3 2024 to 40 compared to the third quarter of 2023. The Multifamily Occupancy Index decreased by seven points to 75 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. Multifamily developers’ headwinds include a tight lending environment, higher borrowing costs, regulations, and land availability. The NAHB forecasts that multifamily construction activity will remain weak for about another year amid a significant volume of projects under construction. Multifamily construction is expected to return to more robust growth near the end of 2025.
- Home improvement industry observers expect remodeling spending to rise in 2025 as more homeowners borrow against the rising equity they have in their homes, according to The Wall Street Journal. After a significant uptick during the pandemic, as people were stuck at home, remodeling spending has been lackluster. Higher interest rates also made it more expensive to finance major renovations. In September 2024, the Federal Reserve cut interest rates for the first time in four years. Rates are expected to continue dropping, which is expected to prompt many homeowners to leverage the value locked in their homes to take out loans for improvements.
- The Dodge Momentum Index (DMI) decreased by 5.3% in October 2024 to 197.2 (2000=100), down from the revised September reading of 208.2. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. On a monthly basis, the institutional planning component fell by 2% in October, and commercial planning declined by 6.7%. Dodge’s associate director of forecasting, Sarah Martin, said, “In addition to data center planning normalizing, a moderate pullback in the number of planning projects for several other nonresidential sectors also contributed to the decline in the Dodge Momentum Index for October. Regardless, owners and developers remain confident in next year’s market conditions, and the planning queue remains poised to spur stronger construction activity in 2025, following deeper rate cuts by the Fed.”
- The wages of residential building workers posted a year-over-year increase of 9.9% in September after jumping 10.8% in August, according to analysis of Bureau of Labor Statistics data by the National Association of Home Builders (NAHB). Wages in residential construction have been rising even as the number of job openings in the construction sector has fallen. There were 288,000 construction sector job openings in September compared to 328,000 in August. Wages in the residential building construction industry have been rising amid overall wage growth and a shortage of skilled labor in the construction market.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.