Sustained growth in most building markets will boost demand for industry services
Los Angeles, CA (PRWEB) February 20, 2013
Recent environmental concerns have helped shed light on the importance of utilizing green and sustainable materials in roof construction projects. As such, many provinces have tightened building codes to promote the use of sustainable materials, thereby driving growth for the Roofing Contractors industry, says IBISWorld industry analyst Deonta Smith. Tax subsidies and operating cost savings have also supported this trend; for example, many roofing contractors have implemented cost-reduction strategies that include prefabrication, mechanization and task elimination through less labour-intensive systems. Additionally, the promotion of LEED-certified buildings has benefited the industry. LEED buildings are evaluated on the materials used during construction, with an emphasis on sustainable products. Over the past five years, the suppressed levels of housing starts and residential renovation expenditures hindered demand from the residential construction market. The recession negatively impacted these segments, leading to a significant reduction in home construction expenditures. Additionally, many reroofing projects were suspended or postponed during this period.
In 2013, roofing repairs on existing structures account for the majority of the industry's revenue. Over the past five years, violent storms helped boost demand for roof contractor services. As a result, industry revenue has risen at an annualized rate of 3.1% to $7.4 billion over the five years to 2013, including a 1.2% jump in 2013 alone. Concentration in the Roofing Contractors industry is low. There are numerous operators in the industry. Most contractors operate locally and provide services to a small segment of the population. Nonetheless, market share has increased over the past five years because a number of companies exited the industry during the recession. Larger companies are looking to expand their footprint in nearby areas, where they can add value and turn once-struggling operations into profitable ventures, says Smith.
Sustained growth in most downstream building markets will boost demand for the industry's services, resulting in increasing revenue. Demand for roof construction is also set to get a boost from increased residential renovation expenditure. Over the next five years, industry employment is forecast to remain relatively constant as roofing contractors increase their use of construction materials that increase efficiency and require less labour. For more information, visit IBISWorld’s Roofing Contractors in Canada industry report page.
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IBISWorld industry Report Key Topics
This 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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