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Roofing Contractors in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld Inc.

Dec 01, 2013, 02:00 ET

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Investment in construction and spending on home improvements will spur demand

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Los Angeles, CA (PRWEB) November 30, 2013 -- The Roofing Contractors industry performs the installation, maintenance and repair of the external cladding of buildings, with roofing activities accounting for the majority of industry revenue. Siding and sheet metal work constitute the industry's other main activities. The industry depends heavily on demand from building construction activity in residential and nonresidential markets, both of which contracted sharply during the recession. According to IBISWorld Industry Analyst Omar Khedr, “The industry has recently experienced several years of steady growth, however, and revenue is anticipated to increase 1.3% in 2013 as the overall economic recovery lifts the housing and commercial construction markets out of the doldrums.” As a result of the two contrasting periods, IBISWorld estimates that overall revenue fell at an average annual rate of 1.1% during the five years to 2013 reaching $43.7 billion.

Industry profit margins remain below prerecession levels because firms have been forced to lower prices to obtain new clients and retain maintenance contracts in the face of drastically reduced demand. IBISWorld estimates that profit represents 3.2% of revenue in 2013. Additionally, industry firms have reduced the scope of their operations to buoy profit, and employee and enterprise numbers have decreased as a result. Some operators have left the industry altogether. IBISWorld estimates that the number of firms has declined over the five years to 2013 at an average annual rate of 1.1% to total 97,117.

IBISWorld projects steady growth in industry revenue during the next five years, underpinned by increased investment in housing and commercial building. During this period, revenue is expected to rise. Housing starts will be a major driver of growing industry demand and are anticipated to increase during the period. “Recovering home valuations and per capita disposable income are also expected to boost consumer spending on home improvements,” says Khedr. The industry will further benefit from the improved cost-effectiveness and popularity of green roofing systems (e.g. solar panels) as property owners look to reap the long-term energy savings these products provide.

The Roofing Contractors industry has a low level of market share concentration. The two largest companies in the industry are Centimark Corporation and Tecta America Corporation. More than three-quarters of industry companies are nonemployers, and of those that do have employees, more than 80.0% have fewer than 10 workers. IBISWorld estimates that the industry has become more fragmented during the past five years. As larger firms let employees go to stay in business, many roofing contractors stayed in the industry as nonemployers and continued to offer their services as subcontractors or individual workmen.
For more information, visit IBISWorld’s Roofing Contractors in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Roofing Contractors industry installs roofing, siding, sheet metal and roof drainage systems, such as downspouts and gutters. Activities also include treating roofs (e.g. spraying, painting or coating), coppersmithing, tinsmithing, installing skylights, installing metal ceilings, flashing, ductwork and capping. Work performed includes new work, additions, alterations, maintenance and repairs.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]

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