The roofing industry is booming. But, just how good of a projected future does the roofing sector have? We’ll break down all the key stats you should know (but probably don’t know) within the roofing industry.
The roofing industry is expected to reach nearly $20 billion in 2021 (Market Research)
There will always be houses in the U.S., and those houses will always need roofs. Because of this, the roofing market is showing no signs of slowing down. $20 billion is an impressive figure and one that shows just how crucial roofs are today, and that their importance will continue as more homes are built in the future. You’d be hard-pressed to find a more stable industry right now.
Between 2015 and 2020, the roofing industry has grown an average of 2.7% each year (IBIS)
Branching off the previous stat, here we have one that relays how consistent the growth has been—an impressive average of 2.7% growth each year. To show just how impressive this 2.7% is, consider the growth of the automobile in the U.S. during that time, which is consistently fluctuating between around .5% and -1.5% year to year.
The home industry, of which the roofing sector heavily relies on, is also seeing some good growth. It is expected to grow by about 1% each year. Once again, it’s safe to say the roofing industry’s growth, combined with that of the home industry, proves it is one of the most steady sectors.
According to a survey of roofers in 2018, 65% of them reported growth in sales and revenue (Kingdom Roofing)
It may seem like there isn’t enough growth within the industry to go around, simply because there are a lot of roofing companies and contractors out there. But that isn’t true. A strong 65% of roofers in a recent survey said they experienced growth in both sales and revenue. While that does leave 35% who broke even for the year or dipped in sales, the overall industry is still strong. In fact, many new roofers are still popping up each year and are becoming profitable not long after.
65% of respondents also said they’re starting to look into augmented and virtual reality solutions for their business (Kingdom Roofing)
Even though it may not seem like roofing companies need to be innovative since their services are relatively straight forward, that hasn’t stopped 65% of roofers from at least thinking about investing in augmented and virtual reality. Such tools can help roofers more accurately estimate the job cost and how much materials they’ll need, which homeowners will greatly appreciate. Cutting-edge roofers will set themselves up for even more profits, as well as position themselves as leading in the area of customer service.
Roughly 80% of roofing business owners have experienced a 10% increase in labor costs over the past couple of years (Kingdom Roofing)
One specific area that is cutting into profits for most roofers is labor. Of course, that shouldn’t come as much of a surprise, as that is generally applicable to a lot of industries—especially those that cannot automate. While assembly lines may be taken over by robots, we’re a long, long way away from robot roofers. If you’re considering starting a roofing company, don’t let these labor costs deter you too much.
78% of respondents indicated that employee referrals were the best way to find needed workers (Kingdom Roofing)
This stat goes to show just how strong the network of roofers is. More often than not, when a company brings on a new roofer, it’s because they have a connection already at the company who can vouch for their work. This is both good and bad. It’s good because it can save a roofing company time and money on finding an employee the old-fashioned way. But, it does sometimes make it difficult for people to break into the industry as a roofer.
68% of industry professionals that responded are expecting solar-related sales to remain consistent, with only 25 percent expecting the green option to experience significant growth (Kingdom Roofing)
Solar is an interesting topic within the roofing industry, and there isn’t a clear consensus on where the solar sector will be over the next 5, even 10 years. Traditional roofers don’t see it growing too much, and instead it will remain a niche within the roofing industry. However, a quarter of roofers do expect there to be significant growth for solar. Which one will it be? Only time will tell.
Roofing replacements make up a large portion of the overall North American roofing market, making up over 90% of both the market’s volume and value (BCC Research)
By far, replacements are the largest portion of the roofing market. This makes sense, as there are so many homes throughout North America that were built a long time ago and need to swap out their old roof for a brand new one. While roofs, on average, do last a really long time, they will eventually need to be replaced. This creates a cycle where there will always be a large number of homes that need roofs replaced each and every year.
The average hourly wage for roofers is $20.57, with a yearly average of $42,780 [CSCE]
Roofers can make some pretty decent cash. Keep in mind, those are average figures, which means you can also make a lot more than the 42k listed. But, new roofers can expect to make less than that. After they acquire more years of service under their belt and become more skilled and educated, they can start making more money.
Estimation software is currently used by 57% of roofing professionals, with 43% utilizing aerial measurement [Kingdom Roofing]
If you’re not using some sort of estimation software right now, your roofing company is definitely in the minority. Nearly 60% of roofing professionals currently use estimation software, with another 43% utilizing a tool for aerial measurement. So, while the roofing industry may not be as innovative as other industries, there is still plenty of opportunity for upgrading the tech and solutions roofers use.
The market size of the Roofing Contractors industry in the U.S. increased faster than the Construction sector overall [IBIS]
The construction industry as a whole isn’t growing as fast as the market size of roofing companies. This is great news, as it shows that the roofing industry isn’t dependent on massive growth within the construction industry and can still be very profitable even if things are slowing down on that front. It’s safe to say that the roofing industry is in a perfect position for long-term success. If you’re interested in joining the legion of roofers who are making great money in a steady industry, consider signing up for the Roofing Insights’ Roofing Business School.