Growth in the Roofing Industry

Predictions for 2023 and Beyond

Atlas Roofing
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Post-pandemic labor and materials shortages created a slew of setbacks and delays in the construction industry the past couple of years. But the good news is that production and distribution is not only returning to normal, it’s on the rise — especially for roofing materials.

In fact, the North American roofing materials market, which was valued at $29 billion in 2020, is projected to exceed $40 billion by 2027, according to Roofing & Exteriors.

The demand for bituminous materials — asphalt shingles, most commonly — is also expected to increase, thanks to their high durability, pleasing aesthetics, high-wind resistance and variety of styles.

According to a study from the Freedonia Group, the U.S. demand for roofing accessories — most notably, underlayment — is also forecast to grow at an average rate of 3.5% annually to $7.8 billion in 2025.

Regional and Global Growth

Due to severe weather events such as hurricanes and tornadoes, as well as extreme elements such as heavy rainfall and intense sunshine, Southern states are projected to continue to experience more growth in roofing accessories than any other region.

Overall, the global roofing market, which was estimated at nearly $80 billion in 2020, is anticipated to reach to a valuation of over $100 billion by 2027, reflecting a 3.7% compound annual growth rate (CAGR), according to the Global Roofing Industry report.

In other words, the entire roofing market is seeing a major boom from new construction and roof replacements, putting the need for shingles and roofing accessories at an all-time high.

Trending Toward Change

According to a Better Business Bureau (BBB) report, titled “An Outlook on the Roofing Industry — Climbing to New Heights: 2022 and Beyond,” after finding themselves confined within their own four walls for the better part of two years, homeowners have a renewed interest in their home’s curb appeal and functionality.

And despite interest rates, homeowners are refinancing or taking out HELOC (home equity line of credit) loans for large maintenance and remodeling projects.

Top trends driving change and growth in the industry, according to the BBB report, include:

Stay-at-home mandates forced many companies to transition their businesses online. However, technology use in the roofing industry pales in comparison to other trades.

“Only 57% of roofing contractors currently use some form of estimation software to prepare their bids,” the BBB report says. “Only one-third of surveyed roofing contractors utilize wearables or mobile devices on the job site, but that number is projected to double over the next two years.

That’s because more consumers are going online to view, compare and buy products and services — including large purchases, like a new roof — making it imperative for roofing contractors to digitize their advertising and marketing efforts.

Roofers are also finding that industry apps and tech gadgets, such as drones, allow them to work smarter, not harder.

Government regulations
With states including California, Colorado, Maryland, Massachusetts, New Jersey, New York and Vermont leading the charge, manufacturers are having to replace products containing high global warming potential (GWP), such as HFC-134a — a propellant found in foam insulation. And they must figure out a way to do so without affecting product strength and performance.

“This should come as welcome news to consumers, because performance is their top concern,” the BBB report states. “In fact, 40% of BBB’s 2020 analysis of 53,000 complaints and negative reviews came down to a single word: leak.

“Environmentally inspired regulation will continue to shape materials used in the industry for years to come.”

Supplying the Demand

At Atlas Roofing, we pride ourselves on product innovation and evolution, which includes creating more environmentally friendly options.

In fact, while we can’t share all the details just yet, later this year, Atlas will be releasing an updated version of one of our premium shingles, which, in addition to Scotchgard™ Protector, will feature new, eco-friendly technology from 3M. (And that’s just one of many exciting announcements we’ll be making this year!)

More importantly, to meet the increased industry demand and make sure you have access to our entire product line, our plants are continuing to work at full capacity. Because, in addition to manufacturing the best shingles and roofing accessories on the market today (in our opinion anyway), a top priority is keeping suppliers, nationwide, stocked with your favorite Atlas products.

Stay tuned... 2023 is going to be awesome!