Asphalt Roof Shingle Prices Expected to Raise in 2009 Despite Low Crude Oil Prices

Share Article

Atlanta roofing company, KTM Roofing is warning consumers to expect another increase in asphalt shingle pricing as a result of information acquired from leading asphalt roof shingle manufacturers. The most popular roofing material for homes in the nation, asphalt roof shingles were heavily reliant on crude oil from Venezuela, which is not producing the same amount of oil that can be used in shingle production as it has previously. Despite some of the lowest crude oil prices in years, asphalt roofing shingles, like other oil-dependent products such as plastics and diesel fuel have increased in price, partly because of an increased demand for gasoline.

KTM Roofing is an Atlanta roofer that specializes in roof repair services.

KTM Roofing wants to remind metro Atlanta homeowners that we have 'A pricing' among asphalt shingle manufacturers. This is the best pricing available as a result of volume

Recent indicators from leading asphalt roof shingle manufacturers has lead KTM Roofing to warn consumers to expect further potential increases in the cost to purchase asphalt roof shingles. KTM Roofing, a leading Atlanta roofing contractor issued a similar statement in June 2008 as oil prices were continuing to rise.

From January 2008 to June 2008 KTM Roofing's cost to surface a standardized 10' x 10' roof coverage area called a 'roofing square' with 3 tab strip shingles went from $30 to $46, which prompted the original June 2008 press release. Since the June 2008 statement, asphalt roofing shingle prices continued to climb, surpassing $50 and peaking around $60 where it is today. These costs do not include other roofing costs such as felt (also oil-dependent in its production), nails or labor, among other costs.

In recent times asphalt shingle pricing could also be tied into crude oil prices from Venezuela. Asphalt roof shingles are dependent on oil as a main component in manufacturing. The South American country was a primary source for crude oil used in the production of asphalt roofing shingles that are common to over 80% of U.S. homes. Recently oil production has been cut, which has limited the oil supply available that could be used in asphalt shingle production.

What is alarming to KTM Roofing and other roofing contractors is that the market is not behaving to reflect the supply and demand for crude oil or the demand for asphalt roofing shingles, which KTM expects to be lower in 2009 than in previous years for metro Atlanta as a result of the current recession. An explanation can be partly found by advances in the efficiency of gasoline production, which has resulted in fewer resources per barrel of crude to be used in the manufacturing of oil-dependent products such as plastics, diesel fuel and asphalt shingles.

In June 2008 the price of crude oil topped off at over $140. For the last few months the price of crude has hovered almost $100 lower than the previous June 2008 highs, but the price of asphalt shingles has not decreased. In fact the price of asphalt shingles is still increasing and expected to see further increases in the next few months.

Obama Infrastructure and Asphalt Supplies:
There is another increasing variable that could lead to increases in asphalt shingle prices, the Obama administration's plans to expand infrastructure. If implemented, the expansion of infrastructure will further consume available asphalt resources for projects such as the paving of roads. This would result in the price of asphalt increasing, because of demand, therefore the price of asphalt shingles would be subject to price increases stemming from a shortage of asphalt supplies.

In his 25 years experience, President of KTM Roofing, Tim McLoughlin has seen many types of financial markets impact fellow national and local Atlanta, GA roofers. Experience has taught him that the price of asphalt roof shingles is dramatically different than the price of crude oil, despite the dependency of raw materials on production. Once asphalt shingles increase in price, they typically do not fluctuate like oil or other commodities.

"KTM Roofing wants to remind metro Atlanta homeowners that we have 'A pricing' among asphalt shingle manufacturers. This is the best pricing available as a result of volume," McLoughlin explains. "We help save the consumer money on their roofing project because we take extra time to fully inspect your home's roof before we provide an estimate. Our estimates are much stronger than a quote--it is a written contract that details all critical aspects of the project. With 25 years experience, KTM Roofing will provide a superior roof, with quality workmanship at a competitive price--guaranteed."

25 Years Installing Asphalt Roofs:
In 2009 KTM Roofing celebrates their 25th year as a roofing company. In that time they have installed thousands of asphalt roofs throughout metro Atlanta and north Georgia and developed a reputation for being a [reliable roof repair __title__ roofing contractor] and roof installation contractor.

For more information, or to receive a free roof estimate visit ktmroofing.com

About KTM Roofing
KTM Roofing has been raising roofing standards in Georgia since 1984™. This Atlanta roofing company is dedicated to excellence in professional roofing. Specializing in roof replacements, KTM can work with a variety of roof materials including natural slate, synthetic slate, clay tile, concrete tile, cedar, pine, cypress, modified bitumen and asphalt. You can receive a roof proposal from KTM Roofing by visiting ktmroofing.com.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Keith Hanks
Visit website