An aging US housing stock and higher disposable income will bolster spending on industry services
(PRWEB) February 22, 2015
The Roofing, Siding and Insulation industry primarily sells building materials to professional contractors and developers who use them to construct, renovate or repair residential and commercial buildings. Over the past five years, revitalized demand from both residential and nonresidential construction markets has helped accelerate industry growth after three consecutive years of poor performance prior to 2010. Consequently, IBISWorld expects revenue to grow in the five years to 2015. Industry revenue is expected to grow in 2015, driven primarily by a spike in demand from the residential new construction market, with housing starts expected to jump up during the year.
“The industry's reliance on the remodeling market, which is significantly less cyclical than the new construction market, has helped industry sales recover quickly during the past five years,” says IBISWorld Economic Analyst Ibrahim Yucel in the updated report. A variety of factors bolster remodeling expenditure, including housing trends such as rising property values and the steadily aging US housing stock, economic trends such as improving disposable income levels and climatic factors such as the frequency of major hurricanes, blizzards and hail storms. For example, rising property values encourage homeowners to enhance the exterior appearance of their homes, boosting demand for vinyl siding products. Likewise, major storm events such as Hurricane Sandy forced homeowners and businesses to repair damaged roofs and exterior walls, bolstering demand for asphalt shingles and fiberglass insulation from both the residential and nonresidential markets.
Over the next five years, the industry will continue to benefit from expanding remodeling activity and stabilizing new construction markets. In particular, private spending on home improvements is expected to rise during the next five years, while the value of nonresidential construction is forecast to grow during the same period. “Furthermore, the frequency and intensity of major storms such as hurricanes are expected to continue increasing over the next few years, according to the National Oceanic and Atmospheric Administration,” Yucel says in the updated report. Accordingly, IBISWorld expects revenue to increase over the five years to 2020. Despite aggressive acquisition activity among the major players, the highly fragmented industry will likely remain dominated by small businesses that operate locally.
For more information, visit IBISWorld’s Roofing, Siding & Insulation Wholesaling in the US industry report page.
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IBISWorld industry Report Key Topics
This industry wholesales nonwood roofing, siding and insulation material, including asphalt shingles, metal roofing, tarred felt and vinyl siding. These products are primarily used for residential and nonresidential remodeling and renovation. This industry does not wholesale wood roofing or wood siding material.
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