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 28,200 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 5-11 workers, and generates $836,000 and $2 million annually.
- The roofing and siding contracting industry consists of about 28,200 establishments that employ 250,300 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
Recent Developments
Mar 15, 2023 - Banking Jitters Push Mortgage Rates Lower
- Mortgage rates dipped slightly after the collapse of Silicon Valley Bank, but housing industry watchers are uncertain if lower rates will persist long enough to provide much relief from the affordability issues that have slowed the US housing market, according to Yahoo Finance. Some financial market watchers note that the banking sector's jitters could slow the Federal Reserve’s strategy of taming inflation with rate hikes. Redfin chief economist Daryl Fairweather told Yahoo Finance, “There's still a lot of uncertainty but in the near term, I do expect mortgage rates to drop. And I expect buyers to take advantage of those mortgage rates because we've seen buyers be incredibly sensitive to those interest rates.” However, some industry insiders suggest that to lure more buyers into the market, rates would need to drop and stay low for a sustained period.
- Multifamily developer confidence improved in the fourth quarter of 2022 but remained in negative territory, according to February’s Multifamily Market Survey (MMS) report by the National Association of Home Builders (NAHB). The Multifamily Production Index (MPI) rose two percentage points in Q4 to 34 compared to the third quarter of 2022. The Multifamily Occupancy Index increased by four points to 49 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. While multifamily housing demand is robust, supply is catching up with demand in some markets. The NAHB expects multifamily production will slow significantly over the next two years after rapid growth in 2022. Developers face several challenges, including high regulatory costs, difficulty securing new project financing, and high interest rates.
- A robust labor market and wage growth combined with steady investments in equipment, IT, and factory construction could help the US economy avoid a recession in 2023, according to Associated General Contractors of America (AGC) chief economist Ken Simonson. Manufacturing and infrastructure investments stemming from the Infrastructure Investment and Jobs Act and the Chips and Science Act are expected to be key pockets of growth for the construction sector. In the manufacturing sector, projects are being driven by EV battery plant and carbon capture projects. However, Simonson noted that high materials, labor, and financing costs could cause a slowdown for other types of commercial construction categories, including warehouse, retail, office, lodging, and multifamily.
- The Dodge Momentum Index (DMI) increased 1.9% in February 2023 to 203.0 (2000=100), up from the revised January reading of 199.3. 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 commercial planning component rose by 1.4%, and institutional increased by 2.9%. Commercial planning got a boost from an almost 20% rise in office planning and stronger data center project planning. In the institutional sector, education and healthcare planning saw gains, with research laboratories being a noted bright spot. Dodge’s associate director of forecasting said, “The continued elevation in the DMI should provide hope that construction activity will grow in 2024. Owners and developers tend to put projects into planning until well after economic conditions weaken. During the Great Recession, for example, the DMI did not substantially decline until 2009. Therefore, the anticipated mild economic growth in 2023 could cause the DMI to moderate over the year, but it is unlikely to fall below historical norms.”
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