Getting familiar with several facts and statistics about the roofing industry can help you keep your roofing business afloat. These statistics give you an idea of how the industry is evolving and from that, you can come up with strategies to grow your business. Read on to discover more.
Roofing industry market statistics
The number of roofing businesses
Between 2017 and 2022, roofing businesses grew by 1.8% annually. In 2021, the number of roofing businesses in the U.S was 108,069 which was a 1.6% increase from the previous year. Currently, there are 109, 331 roofing businesses.
If the number of roofing businesses continues to increase, it could mean more opportunities for new roofing contractors.
An increase in roofing businesses could also mean more competition. If you have an existing roofing business, you could try to invest in more effective marketing strategies to stay relevant and maintain a competitive edge over your competitors.
For instance, you can try to provide excellent customer service and quality workmanship to win more loyal customers.
If you are planning to venture into the roofing industry, you should consider devising a strategy that helps you penetrate the saturated market. This is because, with increased roofing businesses, there might be high barriers to entry in the industry.
You can try to study your competitors and perform better than them. For instance, you can invest in an effective digital marketing strategy that creates brand awareness for your new business.
Market size
The roofing industry has been experiencing growth over the past five years. By 2021, the roofing market was valued at around USD15.47. This value was projected to increase by a CAGR of around 3.5% to reach a value of about USD 18.96 billion by 2027.
The increase in construction activity might have contributed to the increased market size in the roofing industry. With more commercial and residential property owners undertaking construction projects, the demand for roofing contractors could continue to rise.
Increased demand for modern buildings could also contribute to the growth of the roofing industry. This is because modern buildings also call for modern roofing. More property owners might prefer modern roofing designs and materials to complement their buildings.
An increase in the construction of green buildings could also contribute to the projected increase in the roofing market size. More clients might require green roofs for their buildings to promote Eco-friendliness. This can lead to increased demand for green roofing materials which could translate to increased market size.
You might make more profits in the long run if you decide to venture into the roofing industry. You can also try to keep an open mind and invest in modern roofing materials.
Consider networking with construction contractors to increase your chances of growing your roofing business. Construction contractors might connect you with potential clients in need of your roofing services.
Commercial roofing market growth rate
Between 2019 and 2021, the demand for commercial roofing reduced by 88.9 million squares, valued at 6.9 billion, due to a reduction in commercial activities. However, the industry will recover and continue growing at a rate of around 0.2% until 2024.
The commercial roofing market might have suffered some setbacks but it doesn’t mean that it can’t recover. You can try revamping your business by investing in reliable marketing strategies that target commercial property owners.
You can also consider expanding to residential roofing to reach a wider market. This could help keep your roofing business afloat even in tough economic times in the commercial roofing sector.
Residential roofing market growth rate
The residential roofing market value is projected to increase at a rate of about 8.2% annually to around USD 15 billion.
This increase in market value could be due to homeowners’ preference to invest in high-quality roofing materials for their buildings to add value and improve the aesthetic appeal of their homes.
You should consider investing in high-quality roofing materials and invest in effective marketing ideas that can help you acquire more clients in the residential sector. Increased demand for residential roofing can translate into more opportunities to grow your business and the industry at large.
Residential versus commercial roofing
Between 2017 and 2018, residential roofing contractors generated between $250,000 and $5 million. By 2025, the demand for residential roofing is expected to grow by 183.8 million squares. It is also projected that by 2030 the revenue generated by residential roofing will be $15 billion, and the demand will increase at an annual rate of 8.2%.
Between 2017 and 2018, commercial roofing contractors generated an average of $2 to $10bilion in revenue. From 2019 to 2021, the top five companies that generated the highest revenue were commercial roofing companies.
In 2019, 60% of 100 companies with the highest revenue were commercial contractors, while only 40% were residential contractors. The trend continued in 2020, with 62% of the top 100 companies by revenue generation were commercial companies, while 38% were residential companies. In 2021, among the 100 companies that generated the highest revenue, 58% were commercial, and 48% were residential.
The market trends between commercial and residential roofing companies indicate that the commercial companies could be growing at a higher rate and generating more revenue than residential companies.
There could be more opportunities to grow your roofing business in the commercial sector. This however does not mean that the residential sector is not worth venturing into. With adequate resources, you can try to venture into both sectors to maximize your profits and increase your ROI.
Roof replacements
Roof replacements could be the primary source of revenue in the roofing industry. In 2014 roof replacements accounted for 80% of all roofing projects, while in 2020, roof replacements constituted 94% of total roofing projects in North America.
Among all roof replacements, 33 3% of the replacements were due to leaking roofs, 25% were due to storm damage, and 3% were replaced to improve appearance. Only 2% were replaced because the roofs had failed prematurely.
Out of all roof replacement projects, 80% used asphalt shingles, and 20% used metal and ceramic tiles.
You might only be offering roof repair services or focusing on installing new roofs in new homes. We recommend you try venturing into roof replacement services. You might acquire more sales when you invest in the whole package.
Try to target clients who have old, worn-out roofs and not just clients with new construction projects. You can also try to network with renovation companies because they might have access to clients who require roof replacement services.
Top roofing companies
In 2018, CentiMark Corp generated the highest revenue of $627.6 million. Flynn Group was second, generating $382.1million. Baker Roofing Co was third with a total of $277.5million. Nations roofs generated $200.7million, and Kalkreuth Roofing and Sheet Metal generated $134.2million.
In 2021, the revenue generated increased. CentiMark Corp was still leading with total revenue of $813. 8 million. Tecta America generated $740 million while the Flynn group of companies generated $286.3milion. Nation Roof was fourth, generating a total of $249 million in revenue, and Mr Roof/ Able Roofing was fifth, generating $180 million
From the statistic above, some specific companies dominate the market. For instance, in 2018 and 2019, the CentiMark Corp, Flynn Group of companies, and Nation Roof were among the top five companies that generated the most revenue.
Hacking this market as an emerging roofing contractor with a small business might be difficult. However, with the right marketing strategies, you can be successful.
Try to study the market and discover opportunities that you can maximize on. You could start small and market your business locally. From there, you can grow gradually and gain a competitive edge.
Roofing statistics on industry employment
Employment size
By May 2021, the number of employed roofers was around 129,890. The states that had the highest number of roofers include:
- Florida with about 22,860 roofers
- California with around 18,060 roofers
- Texas with about 6,220 roofers
- New York with around 5,370 roofers
- Illinois with about 5,210 roofers
If the number of employed roofers continues to increase, there could be a more dependable labor force to meet the demands of consumers. A large workforce can effectively serve clients to their satisfaction which could lead to increased customer retention.
You can consider increasing the number of roofers in your company to deliver high-quality and timely services to your customers. With more roofers, the overall productivity can increase leading to more sales and profits. For instance, your employees could divide multiple roofing projects amongst themselves to cover wider ground and make more sales.
You are most likely to get employment in the states with the highest number of employed roofers. More opportunities might come up in these states compared to the ones with low employment levels.
Roofing industry helpers
The roofing industry is not only made of roofers but also roofing helpers. These helpers assist roofers by performing less demanding duties. The number of roofing helpers was around 6,830 by May 2021. Below are some of the states with the highest number of helpers.
- California with about 1,020 helpers
- Texas with around 1,010 helpers
- Florida with about 900 helpers
- Georgia with around 520 helpers
- Virginia with about 470 helpers
The companies in the states with more roofing helpers are most likely to have higher productivity rates than the states with little or no roofing helpers. Their ROI could also be higher than that of roofing companies without helpers. This is because, with helpers, roofers can increase the speed at which they complete one job and move on to the next.
More helpers could translate to more productivity, sales and profits. Furthermore, your helper could acquire roofing skills from you in the future which prevents you from outsourcing more roofers.
Employment growth rate
Between 2017 and 2022, the roofing industry experienced a 2.2% employment growth rate. From 2016 to 2026, the number of roofers is projected to increase by 16,500. Between 2020 and 2030, the employment rate is projected to grow by 5%.
Compared to the HVAC sector, which has a projected employment growth rate of 13% between 2018 and 2028, the roofing industry’s employment growth rate is slower.
Despite the little employment growth rate projected, there could still be more employment opportunities in the roofing industry. There are around 15,600 job opportunities projected annually.
These opportunities could be a result of roofers who transfer to different vocations and the ones who retire. When more roofers retire, you could apply for one of the positions that remain vacant.
Top industries hiring roofers
The construction industry hires 40% out of all roofers. The manufacturing industry employs 9%, and the retail sector employs 8% of all roofers. Other industries, including hospitality, healthcare, and government, hire 43% of roofers.
You should focus more on the industries with the most concentration of roofers. Try to mostly direct your prospects to the construction industry. Consider targeting building contractors, home renovation companies, and property owners. For instance, a building contractor can directly link you to a prospective client.
B2B partnerships might also work when you approach renovation companies. However, you should also try to polish your marketing skills to win over your clients.
Years that roofers stay employed
32% of all roofers stay employed in one company for a year, while 30% stay between one and two years. 14% remain in the same company for three to four years, 13% stay five to seven years, while only 4% stay employed for eight to ten years. Those who remained in the same roofing company for over 11 years are only 7%.
The rate at which roofers leave companies might be alarming especially if you wish to retain your employees for a long period. When roofers leave companies, much time could be wasted trying to fill the positions. This could lead to lost revenue and a decrease in ROI.
However, this can be reversed with the right strategies. You can try to improve the working conditions of your employees. Try to pay them a fair wage to avoid losing them. You could even offer incentives to motivate your employees. For instance, you can recognize their efforts by rewarding them with bonuses or salary raises.
Roofing labor shortages
Despite the labor participation recovering from a lower rate of 60.2% in 2021 to 62.4% in 2022, the roofing industry is still experiencing labor shortages.
In 2018, the roofing industry lost between $3.6 and $7.2billion in revenue because of shortages of skilled roofers that forced contractors and technicians to decline 20% more work. By 2018, around 80% of building contractors reported that they experienced difficulty in finding skilled roofers for their projects.
Your clients might not want just any kind of roofer but a skilled roofer. Some roofers are probably not certified and this could lead to sub-standard work. You can use the labor shortage as an opportunity to get the required certifications and polish your skills.
Competition for skilled roofers could provide an opportunity for you to get as many roofing projects as possible to drive sales and increase profits.
If you own a roofing company, you can introduce a training program to train your employees and give them an upper hand in handling advanced roofing materials and procedures. This could provide you with a skilled and reliable workforce that can handle multiple projects and increase profits.
Roofers’ salary statistics
Roofers’ salary
In 2011, the mean annual wage for roofers was about $38,570. By May 2021, roofers received a mean annual salary of around $48,890. This could indicate that the salary might increase in the future.
Roofers also earn by their levels of seniority. The top-level roofers earn $73,190 yearly, while entry-level roofers earn $29,870 annually.
Roofers’ salary also differs by their years of experience. Roofers with 15 or more years of experience receive an average of $50,558 annually. Those with two years or less are paid an annual average salary of $32,203 annually. By working overtime, roofers get an additional $6,000 annually.
Getting familiar with roofers’ salary rates can help you decide to get jobs that pay you a suitable amount of salary depending on your qualifications and level of experience. If you have a high level of experience, your salary should be higher than that of a roofer with little experience.
When hiring roofers for your company, you can hire experienced roofers at a higher rate because in return they could offer high-quality services. Experienced roofers can help build your company’s reputation and increase brand awareness.
On the other hand, you might prefer to hire entry-level roofers at a lower rate who will gain experience in the future. These roofers might also be young and could be more productive in the long run as opposed to older experienced roofers that might retire soon. so, hiring trainees could be a good business strategy for small and medium roofing companies.
Top three states with the highest mean hourly wages
Alaska pays the highest hourly wage rate of $36.60 per hour. Massachusetts pays an hourly rate of $31.76, and Connecticut is the third highest state paying $30.64 per hour. Illinois pays $30.47 while in Rhode Island, roofers receive $29.79.
You can consider seeking employment in the states with high hourly wages to maximize profits and grow your business. If your company is located in a state which pays high wages, you can try to compensate for the wages by acquiring the most qualified roofers.
Highly skilled roofers can drive profits to your business by ensuring customer satisfaction.
Top paying industries for roofers
Roofers employed in the federal execution industry receive the highest salary of $65,770 annually. The local government, excluding schools and hospitals, pay $65,040 annually, while roofers in real estate receive $59,720 annually.
On the other hand, professional schools pay their roofers $56,760 annually, while non-residential buildings’ roofers receive $52,920 annually.
You can try to secure roofing jobs from the top-paying industries. It is however not an easy task and it requires skills and effective marketing strategies. You should consider coming up with a unique marketing strategy coupled with skills and a high level of professionalism to weed out the competition.
Roofing materials statistics
Asphalt material
In 2019, the market size for asphalt material was $7.18billion, and in 2020, the demand grew by 1%. About 136.9 million squares of asphalt shingles were installed. By 2027 the shingle market is expected to reach $9.7billion at a CAGR rate of 3.8%.
In 2018, the 3-tab asphalt shingles generated over $450million. The revenue is projected to increase at a CAGR rate of 3.7%.
In 2019, the high-performance laminated shingles generated $2.7 billion in revenue, and the revenue is expected to increase by a CAGR of 4.0%.
As the demand for roof shingles increases, the competition among contractors who installs asphalt shingles also increases. Therefore, you need to strategically position your company in the market to target more clients.
Ceramic roofing tiles
In 2020, the market size for ceramic tiles was $20.36 billion. In 2021 a total of 3.11 billion square feet of tiles were installed in the U.S, and the market value increased to $21.50 billion. Between 2020 and 2028, the market is projected to grow by a CAGR of 3.8%.
More property owners are likely to prefer ceramic roofing tiles as demand increases. You can try to invest more in these roofing materials to capture the relevant market and increase sales and profits.
Commercial roofing materials cost
In 2021, the price of commercial roofing materials spiked due to shortages. For instance, the price of 1000 board feet of timber rose from $400 to over $1000. The price of steel has also increased to over 300% of its price before the pandemic.
The cost of materials is likely to continue increasing. If this happens, you are likely to increase the cost of your services. It might be difficult to convince clients to incur higher costs.
You should consider devising a strategy to assure customers that you will offer them value for their money. For instance, you can provide great customer service, quality roofing services, etc.
If some materials are less costly than others, you can advise your customers to choose the appropriate materials.
Roofing industry demographics statistics
Age
Roofers between the ages of 35 and 54 dominate the roofing industry with an employment rate of 50.5%, while roofers below the age of 24 only constitute 15%.
The number of roofing contractors reaching the retirement age is estimated at 100,000 yearly, making the labor shortage worse and leaving the industry without enough qualified workers.
This labor shortage could create more employment opportunities for qualified workers. You can take advantage of the opportunities and try to acquire multiple roofing projects that can drive profits for your business.
You could come up with apprenticeship programs in your company to train young roofers. This can help you get more qualified workers to cover more roofing projects and increase your ROI.
Gender
Over the past ten years, there has been a 54.7% increase in women joining the construction industry. In the roofing sector, 95.4% of roofers are men, while only 4.6% are women.
Between 2010 and 2018, the percentage of female roofers increased from 2.75% to 6.88%. In 2019, the percentage of female roofers decreased to 6.44%.
To curb the labor shortage in the roofing industry, more female roofers could venture into the trade. You can also employ more female roofers in your company to promote gender inclusion and increase productivity.
Education level
58% of all roofers have high school diplomas,18% have other diplomas, and only 11% have associate degrees. Roofers with bachelor’s degrees are 8% while those with other degrees make 5%.
Most clients are likely to trust roofers with a higher education level and more certifications than those with lower education levels and minimal certifications. A client will probably have confidence in your work when you are a certified roofer.
Furthermore, technological advances might call for more training in the roofing industry. You can consider polishing your skills and acquiring the required certifications to win your clients’ trust.
Safety-related roofing statistics
Falls
Between 1999 and 2009, falls from the roofs accounted for a third of all construction-related fatalities and 76% of deaths in the roofing industry. In 2019, the total roofing fatalities were 111, and 93 resulted from falls.
The rate of roofing fatalities from falls might increase as the industry grows. Therefore, you need to take necessary measures to protect yourself and your roofers while working, especially on high roofs.
You can also consider investing in construction wearable like smartwatches, smart hats, etc. These devices can help enhance your safety or that of your employees.
It is also important to provide your team with adequate training. During the training, ensure that every employee understands the proper use of the safety equipment.
Electrocution
Electrocution is the second highest cause of roofers’ fatalities, with an 11% fatality rate. Between 2003 and 2007, 26 roofers died due to electrocution. They either touched overhead power lines, transformers, or exposed wiring.
It is essential to prevent electricity-related fatalities. You need to invest and train your team on the electrical grounding requirements. Also, before starting any roofing project, all power lines should be disabled to prevent electrocution.
You should also consider getting an insurance cover that covers your medical bills in case of an accident. For instance, workmen’s compensation cover can reimburse you in case of a work-related accident.
Other Roofing statistics
Roofing problems
40% of all roofing problems are due to water-related damages. Some roofing contractors undermine the integrity of the roofing industry by providing substandard roofing services.
This could make it difficult for clients to trust roofing contractors with their projects. Most of these roofers might not be properly certified. You should consider getting the proper license and certifications to win your client’s trust.
Ensure that you deliver high-quality services and thoroughly inspect your work before completing any project. In case any water-related issue arises with a client, try to respond promptly to resolve the problem.
Complaints
The roofing industry is listed among the top 10 sectors that receive the most complaints on the Better Business Bureau (BBB). 50% of the complaints are associated with unsatisfactory workmanship,16% complained about delays, and 13% complaints were due to failure to make repairs. 11% complained about poor customer service, and 10% of the complaints were due to missed appointments.
Customer complaints might taint the reputation of contractors and roofing companies. However, this could also present an opportunity for you to address the customers’ pain points. You can gain a competitive edge by improving your services.
Try to respond to service calls and attend to customers promptly. Try to adopt great customer service to get more loyal customers. Good customer service can build the reputation of your business or company which makes more clients trust your services.
Consider employing highly qualified and experienced roofers in your company to deliver quality services to your roofers. If you work alone, you can try to get helpers to reduce delays.
Roofing statistics shaping the future of the roofing industry
Green roofs
Green roofs are becoming popular because they can reduce 65% of storm water. Chicago has the highest number of green roofs. In 2006, the city had 200 green roofs covering over 2.5 million square feet. In 2021, Chicago added 6 million square feet of green roofs. Currently, the state has over 600 green roof projects that will bring the total square feet to 7 million.
In 2009, Washington DC installed 190,000 square feet of green roofs, and by 2020, the state had 20% more green roofs.
These roofing statistics might mean that most clients are likely to prefer green roofs over others in the future. You should consider investing in green roofing materials to meet your clients’ demands. You can also conduct research and discover the latest green roofing technology to keep up with changes in the roofing industry.
Try to equip your employees with the necessary skills required for upcoming trends and technologies in green roofing.
Digital marketing roofing statistics
Social media marketing
In 2021, roofing companies spent $9.59million on Facebook advertisements. With over 2.89 billion daily users, Facebook provides you with a platform where you can target your potential clients.
Advertising on Facebook can help place your business in front of the right target audience and enhance brand awareness. For instance, property owners can be found on social platforms such as Facebook.
You should consider marketing your roofing company on Facebook and other social platforms like Instagram or Twitter to attract more potential customers and leads. You can also prefer to hire a social media expert to help market your business.
Internet search terms
The search interest in the term ‘roof repair’ grew from 30% in 2004 to 90% in 2019. Most clients could be searching for roof repair services. You can try to incorporate these terms into your website content to acquire website traffic and possibly acquire more clients.
Search terms might change and evolve in the future since clients’ needs are always changing. You can try to research the terms that your target customers mostly use when looking for roofing services.
Consider investing in a marketing strategy that helps your company appear on search engines for the relevant search terms. You can hire a search engine expert to help you maximize your marketing efforts.
Roofing statistics can equip you with effective knowledge that you can apply in your marketing strategies to grow your roofing entity. Keeping up with various trends also gives you an upper hand when it comes to weeding out the competition and handling new roofing technologies. If you require more information, get in touch with us today.
