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
Recent Developments
Apr 16, 2024 - Industry Growth Poised for Rebound
- The roofing and siding contracting industry is expected to see almost flat sales growth this year, but demand is projected to improve in the following four years. The industry’s year-over-year sales increased by 10.6% in 2022 before dropping to 3.2% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to fall to 1.1% in 2024, then rise by 6.9% in 2025. The industry will then see steady average annual growth of about 6.8% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- The housing construction industry continues to experience a significant labor shortage, but the lack of workers has been mitigated somewhat by an increase in immigration since 2022, according to a recent report by the National Association of Home Builders (NAHB). In the March NAHB/Well Fargo Housing Market Index Survey (February data), 37% of home builders reported labor shortages of roofers. Immigrants account for about 47% of roofing labor in the US. The construction sector’s reliance on immigrant labor varies by state. At 40%, California and Texas have some of the highest percentages of immigrant construction labor forces, followed by Florida (38%), New York (37%), New Jersey (37%), and Maryland (34%).
- Total nonresidential building construction spending is projected to rise 9% in 2024 over 2023, according to FMI’s second-quarter 2024 North American Engineering and Construction Outlook. With growth of 19%, manufacturing will lead 2024 nonresidential building construction, followed by lodging (14%), public safety (12%), and transportation (10%). Some other segments of the nonresidential building sector face headwinds, including high interest rates, inflation, and tighter lending standards. These pressures and high vacancy rates will limit office project spending to 2% growth in 2024. Led by a weakening warehouse segment, commercial project spending is forecast to decline by 2% in 2024. High interest rates will also challenge the housing market. Single-family construction spending is forecast to be flat in 2024 after falling 14% in 2023. Spending for multifamily is expected to decline 8% in 2024 after projects in development peaked at 1 million units in mid-2023. Home improvement project spending will rise 2% in 2024 after falling 5% in 2023.
- Home builder confidence was unchanged in April as mortgage rates and inflation remained elevated, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), was flat at 51 in April 2024, which marked the breaking of a four-month streak of HMI increases. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The NAHB said that while hotter-than-expected inflation data have given some potential buyers pause, the trade group continues to expect the Federal Reserve to announce future rate cuts before the end of the year, which will lead to moderating mortgage rates in the second half of 2024.
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