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 30,360 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 5-9 workers, and generates about $1.5 million annually.

    • The roofing and siding contracting industry consists of about 30,360 establishments that employ 270,500 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 PetersenDean.
    • Single-family residential projects account for the majority of industry revenue.
                              Industry Forecast
                              Roofing and Siding Contractors Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Nov 15, 2023 - Nonresidential Projects Drive Construction Spending Growth
                              • Nonresidential and residential construction spending have posted steady growth in 2023. However, while nonresidential spending was up year-over-year in mid-2023, residential spending decreased over the same period as high interest rates and home prices have cooled demand. Employment growth in the roofing and siding contracting industry has been rising steadily in 2023 and, by Q3, was up moderately compared to the same point in 2022. Wages in the roofing and siding contracting industry have seen moderate growth in 2023, and by Q3, they were up slightly, year-over-year. Meanwhile, producer prices for asphalt and tar roofing and siding products have been rising since the beginning of 2023 and in Q3, were slightly higher than a year earlier. Roofing and siding contractors’ margins could be affected if higher wage and materials costs can’t be passed on to customers.
                              • Home remodeling spending is expected to continue growing in 2023 but will slow by 2024, according to the Leading Indicator of Remodeling Activity (LIRA) report released in October by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase by 2% to $479 billion in the fourth quarter of 2023 compared to Q4 2022. In the first quarter of 2024, remodeling spending will drop quarter-over-quarter to $457 billion, down 2.7% from Q1 2023. Spending will then decline to $454 billion in Q2 2024, down 6.3% from Q2 2023. In the third quarter of 2024, year-over-year spending is forecast to drop 7.7% to $452 billion. The Joint Center expects high interest rates and tight supplies of existing homes for sale will create challenges for remodeling activity.
                              • In the third quarter of 2023, US housing affordability fell to its lowest point since the National Association of Home Builders (NAHB) began tracking the metric in 2012. Many would-be buyers are priced out of the market amid rising mortgage rates, inflation, low housing inventory, and high home prices. According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI), only 37.4% of new and existing homes sold between July 2023 and the end of September were affordable for households with a median income of $96,300. According to the HOI, the median home price in Q3 2023 was unchanged from Q2 at $388,000, but average mortgage rates rose to 7.13% from 6.59% over the same period.
                              • North American engineering and construction spending is forecast to rise by 5% in 2023 compared to the 12% growth seen in 2022, according to FMI’s fourth-quarter 2023 North American Engineering and Construction Outlook. Overall growth in 2023 will be supported by double-digit gains in key segments, including manufacturing (up 58%), multifamily (+18%), and lodging (+16%). Other segments expected to post strong growth include healthcare (+9%), public safety (+9%), amusement & recreation (+8%), educational (+8%), office (+8%), transportation (7%), and commercial (+6%). With a 13% decline in spending, single-family housing is the only segment that is expected to post negative growth in 2023.
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