Roofing Archives - Principia

With strong predicted growth in the category, dealers need to make sure they’re offering a product lineup that meets the needs of both contractor and consumer.

June 16, 2017

Roofing products are not particularly exciting. Compared to other lumber and building materials such as decks, windows, doors and siding that are extremely visible from the curb and offer immediate visual sizzle, roofing materials can often fail to generate consumer excitement. Still, considering that the U.S. Dept. of Commerce reported new housing starts in January 2017 of 1.25 million—up 10.5% compared to the same month last year— and that a recent report from the U.S. Census Bureau’s American Community Survey indicated that the average single-family homeowner doesn’t move from their current home for an average of 15 years (meaning that most current homeowners will be facing a reroofing project during their ownership period), roofing materials are a strong category and one that should not be ignored, especially when offered as a complete system rather than as one-off individual products.

As Alex Pecora, Residential Products Manager for CertainTeed Saint-Gobain Roofing, explains, “Most people will only buy one roof in their lifetime. We want everyone to have the best roof they can possibly get, and due to the synergies involved with the different components, a designed systems approach is the best way to build a roof.”

Strong Growth Projected

Demand and projected growth for roofing products is anticipated by Principia to be strong not just for 2017 but for the next two years as well. In 2016, 124 million squares of roofing material were sold, with architectural shingle products leading the pack at 71 million. For 2017, roofing sales are projected at 129.7 million, with the two years following projected at 135.9 million and 140.4 million respectively, with single-family homes leading the way.

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Principia Consulting Announces New Report on the Metal Roofing Market; Growth Driven by Increasing Architect and Property Owner Acceptance

June 16, 2017

Metal roofing is in the spotlight within steep slope roofing as segment sales are growing from light commercial new construction and residential remodeling. Increasing architect and property owner acceptance has helped this industry segment become a multi-billion dollar market in 2017.

“The diversity and longevity of a metal roof offers many benefits for the market to consider. The high initial cost of metal roofing is offset by its long useful life of 50 years or more which presents the market with an interesting decision as to whether to invest more into the growingly accepted metal roof market”, according to Ken Jacobson, a Partner at Principia Consulting.

Several factors could be contributing to the increase in acceptance of metal roofing products. Residential metal roofs are now available in a wide variety of designs to complement any style home. In fact, traditional asphalt roofing suppliers have introduced highly styled products to simulate shingles, slate, tile and shakes adding to the curb appeal of these products. The green factor also could play a role with metal roofing typically containing an average of 50% of recycled content. In addition, metal roofs can be “cool” and lower annual household expenses, providing an energy efficient solution.

Principia is launching Metal Roofing 2017 which provides a vital baseline analysis for forecasting and business planning for current and new industry participants. Using 2016 as its launch point, the report analyzes demand drivers and trends by material, construction type, distribution channel, supplier and region, providing forecasts through 2020.

It also analyzes trends in current products, new product developments and technologies, and competitive materials, helping companies anticipate customer needs, plus insights into:

Up-to-date market size and forecast
Voice of Customer feedback on usage and preference trends
Channel dynamics and trends impacting demand
Market share review for metal roofing producers
Strategic insights into growth of metal roofing

Subscribers also have access to Principia’s market assessment and forecast. The interactive tool enables subscribers to evaluate the market through whatever lens they choose. It provides a year over year forecast to 2020. This powerful web-based tool is designed around best practices of data visualization and usability. The online platform enables users to login from any desktop or mobile device to access all of the data from the report, with the ability to instantly customize the data views.

Metal Roofing 2017 will launch in the third quarter of 2017 and is scheduled for completion in the fourth quarter of 2017.

Click Here to access more information on the Metal Roofing 2017 report.

Market Position and Customer Experience Assessment in Commercial Roofing

March 21, 2017

Situation: A specialty roofing manufacturer felt it was not leveraging its overall market position as several related businesses with separate commercial and operational resources competed with one another.

Approach: Principia surveyed the market – distributors, contractors, competitors, the client’s sales organizations – and mapped the buying process. Market needs were identified by customer type and also the gaps between customer requirements and the performance of the client’s individual businesses.

Outcome: A $30 million first-year sales lift resulted from a single sales organization created with national and strategic account designations and a more coordinated effort on A+D specification selling.

Click the link below to learn about Principia’s Commercial Roofing report.

LIQUID APPLIED ROOFING: 5 KEY LEARNINGS

December 16, 2016

Principia recently published its report on the liquid applied roofing market and identified 5 key learnings for investment consideration.

1. Ripe for Consolidation. The liquid applied roofing (LAR) market is a fragmented market which includes over 100 participants including manufacturers and suppliers of private labeled products. With its high growth rate and relatively recent status as an established category segment, it is ripe for consolidation.

2. Growth Market. LAR accounts for only 24% of overall commercial roofing demand but is growing at nearly 10% annually – approaching 3X the growth rate for the commercial roofing industry which makes this high growth market an attractive investment opportunity.

3. Young Market. LAR is a fairly young market with both established and innovative technology deployed to meet the evolving market trends in commercial roofing. Opportunity exists to create a platform of product offerings to meet the critical needs in the market.

4. Market Demand. The new economic realities learned since the mid-2000’s recession combined with a focus on environmental ‘greening’ has led to increased market interest in a lower cost and no-waste solution for roof restoration offered by LAR.

5. Financial Benefit. From an owner’s point of view, LAR is typically considered a maintenance expense, rather than a capital expense, allowing the building owner to write the full cost of the restoration off in the year in which it occurs, rather than writing down the full cost of a roof restored through a traditional depreciation schedule over time.

Are you positioned to take advantage of this fast growing segment? Principia’s latest industry report on liquid applied roofing provides detailed insights and analysis.

$746 Million Liquid Applied Roofing Market in North America to Grow Nearly 10% through 2019 According to Principia Consulting Report

November 3, 2016

Liquid applied roofing has been the fastest growing segment of the commercial roofing market recently, estimated to grow nearly 10% per year through 2019. This growth rate is nearly three times that of the overall commercial roofing market as a whole which is driven by overall economic conditions, major weather events and the industry’s interest in “green” building concepts.

Total demand for liquid applied roofing in North America was valued at $746 million based on the manufacturers’ factory gate level in 2015. Increased interest in liquid applied roofing across restoration and new construction will drive market penetration by an additional 1% to 2% during the forecast period, resulting in accelerated growth rate of liquid applied roofing over traditional commercial roofing materials.

Acrylic Dominates
Acrylic liquid applied roofing is the most widely used product and accounted for 50% of total volume in 2015. The choice of acrylics has been technical and economical as it does not bake out or become brittle as asphaltic types do. Acrylic applications are most common in the Southwestern and Western climates due to its use as a reflective coating.

Existing Structures Continue to Drive Growth
The fastest growing applications for liquid applied roofing are forecast to be in restoration projects with nominal growth in reroofing. Restoration is projected to grow at 10.5% annually compared with 5.7% for new construction and 3.5% for tear-off construction. Liquid applied roofing will gain share in the commercial roofing space and primarily in the restoration construction type as it is projected to continue to find acceptance as a partial reroof solution as well as new roof applications over concrete decks.

Liquid Applied Roofing 2016 is Principia’s first exclusive coverage of the liquid applied market and provides a detailed analysis on the current and future state of this segment of the roofing industry. Principia’s knowledge in the market is driven through its historical coverage of the commercial roofing market through various reports dating back to 2008. The report draws upon interviews with nearly 600 manufacturers, distributors and dealers, roofing contractors and property owners. Using 2015 as its launch point, the report analyzes demand drivers and trends by material, application, construction type, region, distribution channel and supplier, providing forecasts through 2019.

“When reviewing our product development schedule, we couldn’t overlook the overwhelming interest and feedback from the industry regarding liquid applied roofing. Through in-depth conversations during our recent research efforts on the overall commercial roofing market there were signs that something was going on that warranted further investigating. This market assessment validates there is opportunity for growth and investments to be made”, states Susanna Ross, Industry Analyst at Principia.

Principia Study: A Closer Look at Commercial Roofing

August 17, 2016

By Ken Jacobson

Roofing contractors need to be experts in their field to be successful; they also need to understand what property owners are looking for in roofing contractors and roofing systems. Having expertise may be an obvious requirement for growing a business, but understanding a customer’s mindset can differentiate the winners from the losers. Recent research conducted by Principia Consulting that focused on the commercial roofing market reveals an inside look into the property owner’s decision making process. Findings were collected from 116 commercial property owners and managers who were screened for their involvement and knowledge of commercial roofing programs.

Read Full Article From Roofing Contractor

Principia’s Commercial Roofing 2016 report is available for purchase.

Commercial Roofing 2016

Want to Grow Roofing and Wallboard Sales? Think and Act Like a Specialized Distributor.

July 5, 2016

Lumberyards need to learn what the one-steppers do well, then strive to beat them at their own game

Lou Rossi, Managing Partner, Principia Consulting

Traditional lumberyards have expressed strong interest in greater participation in roofing and wallboard and ceiling markets, according to our recent research. However, there’s a major obstacle facing lumberyards: Channel supply, which is dominated by specialized one-step distribution in both categories

Lumberyards accounted for only 10% of the $21 billion worth of roofing sold through wholesale and retail channels in North America in 2015. Similarly, lumberyards account for 11% of the $5 billion wallboard and ceilings channel revenue in North America last year.

Distributors largely serving these categories are narrowly focused, providing the ability to carry a deeper product line within the category. Roofing distributors tend to be bit broader, typically extending into siding and windows to serve overlapping contractor and installer customers. Wallboard and ceilings distributors are almost exclusively focused on these two products. Some companies sell related products like steel framing and installation tools but generally have not diversified into other product categories.

Read Full Article at ProSales Magazine HERE.

Principia Consulting Announces New Focused Report on Liquid Applied Roofing Market

May 12, 2016

Liquid applied roofing is a fast-growing segment of the $5.1 billion commercial roofing industry in North America. While this segment represents only 15% of the total market today, these roof coatings are primarily used in the reroof portion (including maintenance and restoration) of the market which represents over 70% of overall demand for all commercial roofing.

A number of market trends support greater use of liquid applied roofing. Property owners desire low impact reroofing systems to avoid higher replacement costs and major disruptions resulting from a roof tear-off. In many applications, roof coatings can be applied for 70% less than the cost of roof replacement. Liquid applied roofing can provide up to 25 years of protection for an existing roof that needs a major repair or roof replacement while also providing other benefits such as waterproofing and sustainability through energy efficiency. These roofing systems can also contribute positively to ASTM sustainability standards as well as other initiatives such as LEED and Energy Star.

“Growth in the high-performance coatings market is steadfast and has been fueled by the rising acceptance and increased awareness among contractors and building maintenance managers. This positive reception is considered not just as a maintenance solution for an existing roof but also as a preventive waterproofing solution. The growth in this segment is significant to the commercial roofing market and warrants further investigation”, according to Ken Jacobson, a Partner at Principia Consulting.

Principia is launching Liquid Applied Roofing 2016 which provides a vital baseline analysis for forecasting and business planning for current and new industry participants. Using 2015 as its launch point, the report analyzes demand drivers and trends by material, construction type, distribution channel, supplier and region, providing forecasts through 2018.

It also analyzes trends in current products, new product developments and technologies, and competitive materials, helping companies anticipate customer needs, plus insights into:

Up-to-date market size and forecast
Voice of Customer feedback on usage and preference trends
Channel dynamics and trends impacting demand
Market share review for leading producers
Strategic insights into the growth segments of commercial roofing

Subscribers also have access to Principia’s proprietary market model and forecast tool. This powerful web-based tool is designed around best practices of data visualization and usability. The online platform enables users to log in from any desktop or mobile device to access all of the data from the report, with the added ability to instantly customize the data views and integrate with their own information.

Liquid Applied Roofing 2016 launches in the second quarter of 2016 and is scheduled for completion in the third quarter of 2016.

$5.1 Billion Commercial Roofing Market in North America to Grow 4% through 2018 According to Principia Consulting Report

April 25, 2016

Total demand for commercial roofing in North America was valued at $5.1 billion based on the manufacturers’ factory gate level in 2015 compared with $4.8 billion in 2013. Market growth has largely been driven by new construction but the resurgence of city development is also playing a part in increased demand.

Retrofit, Repair and Reuse Still Significant
New construction growth is projected to increase at a rate of 6% annually compared to 3% for reroofing. While a substantially higher growth rate is projected for new construction than reroofing, many buildings are being refurbished as the millennial generation returns to city dwelling. In addition, older buildings are being repurposed for offices and residences as developers find it faster and less expensive to adapt existing space than to construct new structures. This is good news for commercial roofing as it will increase the amount of roofing area put back into play for reroofing jobs. Retrofit, repair and reuse are an important sector for all of commercial construction and in commercial roofing account for nearly 75% of demand in 2015.

Low Slope Continues to Dominate
Low slope continues to maintain market share over steep slope with single-ply roofing demand growing the fastest with a 4% growth rate annually. Single-ply holds the largest share of overall demand with 45% by volume. For steep slope commercial applications, metal roofing is expected to grow slightly faster although asphalt shingles will continue to enjoy the majority share due to dominant market position and price.

Commercial Roofing 2016 draws upon interviews with nearly 400 roofing professionals and property owners and managers. This recently released fourth edition of Principia’s coverage of the commercial roofing market provides detailed analysis on the current and future state of this segment of the roofing industry.

“This somewhat fragmented industry with over 100 suppliers continues to be driven by commercial construction spending which increased 32% from 2013-2015. Principia’s evaluation of the commercial roofing market assesses how this increase in spend has influenced the roofing market, suppliers, products and ultimately future implications. In addition, our detailed voice of customer section digs deep into preferred roofing types, design and specification considerations, the purchasing process including vendor selection and key challenges facing the industry”, states Ken Jacobson, Partner at Principia.

Commercial Roofing 2016 provides a vital baseline analysis for forecasting and business planning for current and new industry participants. Using 2015 as its launch point, the report analyzes demand drivers and trends by material, construction type, distribution channel, supplier and region, providing forecasts through 2018. It also analyzes trends in current products, new product developments and technologies, and competitive materials, helping companies anticipate customer needs.

To purchase the report or learn more about the scope and content covered, please contact Brooke Cowell, VP of Marketing at bcowell@principiaconsulting.com.

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