Report: U.S. roofing market on 'environmental fast track'
The U.S. roofing market started to see slow growth in 2016 despite the recent decline in both the U.S. residential housing market and commercial real estate demand, according to BCC Research's Commercial Roofing Materials: The North American Market.
The report estimates the market to increase from nearly $4.5 billion in 2016 to $5.9 billion in 2021.
Even though some sectors of the U.S. economy are seeing slight growth, commercial real estate is struggling to rebound, notes the June report. Federal monetary and fiscal stimulus programs were not as successful as anticipated in leading to a brisker recovery in construction materials shipments. However, the federal government has expanded programs that promote building energy efficiency, which will, in turn, benefit roofing product manufacturers.
The health of the roofing industry will ultimately hinge on the long-awaited recovery of the U.S. economy as a whole. Moderate recovery began in 2016, with GDP growth moving back into positive numbers. Federal incentive programs have taken hold, and consumers are becoming more educated about the programs and tax incentives available to them. Increased environmental concerns and growing tax incentives are beginning to affect the roofing market demand. Additionally, economic policy changes could potentially introduce new incentives that may benefit the construction industry.
- Hot built-up roof (BUR) products are expected to lead the market by 2021, totaling a 13.1 percent share of the market in terms of value.
- Metal currently accounts for 11.8 percent of the total market value, yet accounts for only 3.5 percent of the total market volume.
- Environmental concerns, along with tax incentives of the federal stimulus plan, are increasing demand for reflective and green/vegetative roofing products.
"The rise in popularity of green building has produced a new demand in the market for a larger variety of recycled roofing materials," said Lisa Marshall, BCC Research analyst and author of the report. "Overall, the roofing industry seems headed down the 'environmental fast track' with both roofing manufacturers and contractors now offering more earth-friendly products and services. Environmental programs and incentives are available for building owners dedicated toward building new structures or remodeling existing ones that are 'green.' "