Mar 20 2007
Although the general economic climate for residential building and construction has softened over the past several months, there continues to be significant market dynamics in the roofing industry. The roofing industry is witnessing evolving material technologies, changes in product aesthetics and function, consolidation of distribution channels, and competitive pressures in pricing.
A new market study by Principia Partners will provide fresh clarity and crucial insights on the residential and commercial markets for roof coverings in North America. The study will focus on all major types of roofing materials, including asphalt, metal, clay and concrete tile, slate, shake, polymer composite, single ply (PVC and EPDM), and reflective or “cool roofs”. The report will also distinguish between new roofing and re-roofing applications.
Jim Morton, a Senior Partner at Principia explains “We are very excited about conducting this in-depth study. There are many business issues to thoroughly analyze. For example, in residential markets, asphalt shingles dominate with over 60 percent of total roofing area installed, representing a wholesale market value nearing $8 billion. Even with new residential construction slowing, there is a stream of new roofing products, including architectural asphalt shingles, a wide range of polymer composite slate, shake and tile products. Another example is building-integrated photovoltaic roofing panels, which benefit from California's $3 billion subsidy for solar power over the next decade.”
Principia’s study will examine asphalt roofing products as well as the original incumbents - cedar shake, natural slate and clay tile - the other major materials used for residential roofing in North America.
In commercial roofing, the once dominant hot asphalt built-up-roof accounts for only about 15% of today's commercial roofing market, and is often replaced by alternative roofing systems when re-roofing is required. An example of alternative roofing emerging is green roofs or garden roofs which feature leakproof membranes, low-weight soils, and carefully researched mixes of plants to mitigate the urban heat island effect when asphalt gets extremely hot, leading to higher urban temperatures.
Today EPDM single ply holds 30% of the commercial new roofing market, with a range of alternative materials also increasing share. These include modified bitumen, thermoplastic olefins, metal, PVC single ply, and spray polyurethane foam systems. These systems have grown their share based on user experience and roofing performance results over the past two decades.
Mr. Morton continues “This study will serve as an important baseline analysis for forecasting and business planning purposes by existing and new industry participants. Using 2006 as the baseline, the study will analyze the drivers and trends of the residential and commercial roofing markets by region, distribution channel, market segment and material type, and will provide forecasts covering the next five years.”
The study will provide insights into current and future products and competitive positioning, and will help companies anticipate unmet customer needs. Key issues to be addressed include:
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Changing trends in product substitution
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Channels of distribution to key markets and regions
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Shifts in market share among producers within each major material segment
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Supplier strategies and approaches to market
Results of the report will provide subscribers with critical market data and analyses essential for planning purposes including:
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Up-to-date assessment of the residential and commercial roofing markets
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Assessment of the major roofing products
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Identified product development needs and channel opportunities
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Market share review for roofing producers
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Profiles of over 30 companies active in the business
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Strategic insights into this dynamic industry