Remodeling and maintenance account for approximately 75% of spending on non-residential roofs and approximately 70% of residential roofs. Since most of the industry is not dedicated to the construction cycle, roofs represent one of the least cyclical subsectors in the sector. Key factors shaping the future of the industry include changes in real estate market dynamics, non-residential demand, green roofing solutions, the industry lifecycle, and technological advances. Construction tends to be a cyclical industry, but since roofing products are needed both for new construction and to replace them throughout the economic cycle, the roofing subsector tends to be less cyclical than industry in general.
As demand for green and energy efficient buildings grows, roofing contractors can differentiate themselves by developing and commercializing sustainable roofing solutions. The demand for green and energy efficient roofing solutions will drive current contractors to diversify and to enter the market to new companies specializing in green solutions.
The roofing industry
is about to experience moderate growth in the coming years, driven by changes in real estate market dynamics, non-residential demand, green roofing solutions and technological advances. There is little consolidation in the roofing industry, as larger contractors specialize in commercial roofing and have little incentive to acquire smaller roofers and independent contractors to service homes.As these technologies become more affordable and widely adopted, roofing contractors will need to adapt and expand their service offerings to remain competitive in the market. Green roof products have become more popular over the past five years3, including those that reduce energy consumption by reflecting heat and those that use solar energy panels to generate electricity for structures. Homes need constant care and repairs, including costly projects, such as roof replacement. By implementing these strategies, roofing contractors can overcome the challenges facing the industry and take advantage of new growth opportunities.
and success. The roofing contractor industry in the U.S. The U.S. is focused on market share, meaning that the four major companies generate industry revenues. Roofing contractors can differentiate themselves by emphasizing communication and keeping customers informed throughout the roofing process.
As demand for new construction and infrastructure continues to grow in the United States, the roofing industry will expand. As green roofing gains momentum, contractors will have the opportunity to add more value to contracts and differentiate their service offerings based on factors other than price or reputation. The continued need for maintenance and replacement makes roofs less cyclical than new construction, an advantage in volatile times and with high interest rates. Trends in roof construction New roofing products can provide homeowners with new opportunities to express their personal style, which could motivate them to move on.
