A new research report projects that overall demand for residential and commercial roofing will increase from 216 million squares valued at $8.6 billion in 2007 to 250 million squares valued at $10.7 billion by 2012, or 5% compounded average annual growth over this time period.
According to the report compiled by Principia Partners, total North American demand for commercial and residential roofing is estimated to be 216 million squares valued at nearly $8.6 billion in 2007, according to Principia Partners. This is down 5% in volume terms from 228 million squares and down 2% in value from $8.8 billion in 2006. Residential markets account for 155 million squares valued at $5.3 billion, 72% and 62% of the volume and value respectively in 2007.
Commercial markets account for 61 million squares valued at $3.3 billion in 2007. Interestingly, this is a decrease in volume of 3% from the 63 million square and an increase in value of 2% from the $3.2 billion in 2006. This is due to a shift from some lower priced materials like EPDM to higher priced products like TPOs, metal, green (garden/vegetative) roofs, etc.
Residential roofing is dominated by asphalt shingles which account for 92% of the volume and 75% of the value respectively. Asphalt shingles as a roofing product type reached nearly $4 billion in sales in 2007.
Commercial roofing sales reached $3.3 billion overall in 2007 with single-ply products comprising the largest segment. Single-ply encompasses EPDM, TPO and PVC membranes and accounted for 32% of volume and 28% of value in 2007.
Roofing material demand is driven by the overall construction market, residential and commercial, and is impacted by such relevant factors as interest rates, weather patterns and events (hurricanes, hailstorms), housing starts and other economic indicators.
“It’s not just about starts. Over 75% of shipment volume and a similar value of roofing material value come from repair and re-roofing,” said John Pruett, director of marketing and new business development at Principia. “This is true not only in the residential sector, but the commercial sector as well.”