It is expected that throughout 2017 the manufacturing of environment and climate friendly roofing parts and components, will see significant growth. It is a continuation of the industry’s steady growth over the past few years and growth that is expected to continue for ten years or more. Experts are so confident that 2017, and after, will be great years for the roofing industry, that there are predictions of nearly 7% overall increase in the market.
The reasons for the anticipated rise in demand, cost, and price of materials is tied to the corresponding stability and growth of the real property market.
Past Downturn in the Industry
The United States market downturn in 2007 and 2008 hurt the roofing industry, and it slowed, or even halted in some areas of the country. At this time, the slowdown in new roofing and the production of roofing materials was directly tied to the housing bubble bursting. Property prices across the country plummeted as homeowners could not sell their current house, and commercial property was also affected.
Soon after the housing market crash, the roofing industry began to see fewer orders for materials and less demand for repairs or new roofs. Other industries directly tied to the real property, such as surveying, house painting, and gardening saw similar drops in demand. The reason is three-fold.
First, there are fewer new developments and new builds happening in the years following 2007. With fewer people constructing a new home, there was far less need for roof builders and their suppliers.
Second, fewer homes were being bought and sold. This meant homeowners were not as likely to make repairs in expectation of a higher appraisal for their property, and fewer people were moving and wanting to make substantial changes to the property.
Third, people had less disposable income and were putting off or ignoring repairs and replacements. Many people during this time felt that if the roof was functional, there was no need to replace it. However, sluggishness in property prices, sales, and development would not last forever. A rebound was sure to occur.
A Better Future
Some experts in purchasing trends and market research feel that 2017 is going to be a booming year for the roofing industry. In many ways, roofing materials and construction have made a substantial comeback from the lowest point in 2008 and 2009. However, for the initial years, it was a slow, steady rise in demand and prices, not a significant or discussion-worthy increase.
However, the year 2016 saw more substantial growth, and it was expected that the global roofing industry would grow by 6.96% between 2016 and 2020, which is much more significant than the prior five year period. This estimation from industry leaders is based on a review of market analysis and look at the information and predictions for related industries.
There are similar projections that anticipate the roofing industry to hit a total $142.88 billion US dollars by the year 2025, and even some production leaders reporting the industry to hit as much as $240 billion US dollars by 2025. The reasons for this expected growth are, naturally, tied to the housing and commercial real property markets, with the consensus that much of the current and future industry revenue will come from North America. However, other regions are also experiencing sustainable growth.
Asia Pacific’s Role in Roofing Industry Uptick
One part of the world that will significantly influence the global roofing industry is Asia Pacific. Countries such as Thailand, Malaysia, Vietnam, and the Philippines are among the fastest growing countries in the world for new housing and construction. This puts them, and other Asian Pacific companies, at the top of the growth list for roofing material and construction, as well.
The material most in demand in Asia Pacific is tile. However, there is new interest in climate friendly roofing materials that were previously uncommon in this part of the world, for example, shingles. For a very long time, these countries were dependent upon local products and natural resources to construct the roofs of everything from homes to hospitals. However, globalisation has brought new materials and techniques, even to more rural and remote communities.
As well, more and more robust roofing materials are needed throughout countries such as India and Indonesia as infrastructure development continues to increase. Areas of these developing nations are receiving certain materials, tools, and technology for the first time, and there is a massive demand for new buildings, mostly commercial, and upgrades to older structures.
Growth in Other Parts of the World
Certain parts of Europe and South America see revenue and demand for roofing materials go up. However, in most parts of these continents, the growth is slower than experienced in North America.
The market in North America is dominated by an increase in commercial property. In years before 2017, it was estimated that as much as 40% of growth, not just in North America but around the world, was due to nonresidential construction. This made it by far the largest segment of the roofing industry and the catalyst for much of the growth now observed in the markets. In 2017, and after, it is predicted that nonresidential construction will remain a significant amount of the market share, although it would be a mistake to discount the effect of residential building in the United States, Canada, and Mexico.
There is a continuous increase in the number of housing developments and new construction, and it is without a doubt the fastest growing segment of construction in the United States. Plus, as homes move faster on and off the market there is more demand for repairs and routine maintenance. A new roof is one of the best ways to add value to a home, and homeowners who plan to sell their property are the most likely part of the population to invest in a new, upgraded or renovated roof.
These optimistic predictions for the roofing industry are signs of positive growth among different facets of construction and development. Where a roof is needed, there must be a new building, which would also require necessities such as bathroom fixtures, flooring, lighting, and utilities, such as plumbing and electricity. Therefore, it is with an eye towards an overall economic growth of the construction and development industries that experts discuss the rise in demand for roofing and roofing materials.