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 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

                              Jun 18, 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.
                              • Amid a shortage of existing homes on the market, 61% of home buyers prefer new homes, according to a recent survey by the National Association of Home Builders (NAHB). The survey’s results show the highest share of new-home preference since 2007 when 63% of home buyers preferred new construction. Homeowners who locked in a low interest rate before 2022, when the Federal Reserve began raising interest rates, are reluctant to sell and swap their low-interest loans for a higher rate. New single-family homes have filled the void in the market left by a lack of existing homes for sale. Residential construction is a key demand driver for plywood and engineered wood products.
                              • The Dodge Momentum Index (DMI) increased 2.7% in May 2024 to 179.0 (2000=100), up from the revised April reading of 174.3. 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 improved by 5.5%, but institutional declined by 3.4%. Dodge’s associate director of forecasting, Sarah Martin, said, “Owners and developers are gaining confidence in 2025 market conditions, alongside more stable and predictable interest rates – spurring stronger commercial activity over the month. Conversely, after last year’s growth, institutional planning is decelerating, as high material costs, labor shortages, and elevated interest rates seep into planning decisions. The overall DMI remains 40% higher than May 2019 levels, indicating a steady pipeline of construction projects that will be ready to break ground through mid-2025.”
                              • High interest rates have slowed the US housing market, a key demand driver for roofing and siding contracting. In May 2024, the average 30-year fixed-rate mortgage rose seven basis points to 7.06% compared to 6.99% in April, according to Freddie Mac. May’s rate was up 64 basis points from May 2023, when the average 30-year fixed-rate mortgage was 6.34%. The National Association of Home Builders (NAHB) expects 30-year mortgage rates to linger in the 6.66% range through the end of the year and dip slightly below 6% by the end of 2025. The NAHB projects that the Federal Reserve will announce a rate cut at its meeting in December, and there will be another six cuts in 2025.
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