3 Reasons Why Reroofing Activity is on the Rise – Storms or No Storms

3 Reasons Why Reroofing Activity is on the Rise – Storms or No Storms

US roofing contractors were extremely busy in 2016 and 2017. As the nation experienced a number of severe weather events that caused widespread roof damage, roofing demand was at its highest level in years. Millions of homes and businesses required significant roof repairs, if not outright replacement.

In contrast, 2018 saw much less severe weather across the US, and in turn, roofing demand retreated from its elevated base. Does this mean that the fate of roofing companies will depend on the whims of Mother Nature? Maybe not. Here are three reasons why the reroofing market will offer roofing contractors and other construction professionals strong growth opportunities going forward, regardless of weather.

Large Number of Older Roofs will Need Replacement

Many structures in the US have roofs that are near or beyond their expected product lifespans. While home and business owners will try to extend the life of their roofs for as long as possible, eventually these roofs will require replacement. Going forward, consumers will increasingly replace older or worn roofs.

  • High property values will make it easier for homeowners to access home equity lines of credit to fund renovation projects.
  • Building owners will continue to take advantage of the favorable provisions of the Tax Cuts and Jobs Act of 2017 that allows them to fully expense the cost of most roof renovations in the year they occurred.

Insurers will Continue to Seek Roof Replacement

In some cases, the decision to install a new roof will not be made by the home or the business owner, but rather by the insurance company. After the severe weather outbreaks of 2016 and 2017, insurance companies were faced with the prospect of large payments on claims to repair and replace roofs damaged by wind, hail, and moisture. To minimize future claims payments going forward, many insurance companies have adopted provisions – or will do so – requiring property owners to install weather-resistant roofing to maintain insurance coverage. These more durable roofing materials can include:

  • Laminated asphalt shingles (especially high-performance types)
  • Standing seam metal roofing and metal shingles, shakes, and tiles
  • Concrete and clay roofing tiles
  • Composite roofing
  • Plastic single-ply and rubber roofing membranes with thick scrim backings

Interest in Cool Roofing to Further Support Reroofing Activity

A further factor that will spur home and business owners to engage in roof replacement projects will be that of improving energy efficiency. Construction professionals see roofs – like walls or windows and doors – as a key element in minimizing energy consumption and lowering utility bills. This is especially a concern in the southern half of the US, where lengthy summers and prolonged periods of sunshine can challenge business and home owners to keep interior temperatures comfortable.

One way to do this is to install cool roofing products that deflect sunlight off roof surfaces and minimize heat transfer, thus helping building interiors stay comfortable. Examples of cool roofing that will see increasing use going forward include:

  • Asphalt shingles and bituminous membranes with reflective granules
  • Metal roofing
  • Roofing tiles
  • White or light-colored plastic single-ply and rubber roofing membranes

For more information about the size and growth of the US roofing market, check out The Freedonia Group’s new study, Roofing at URL https://www.freedoniagroup.com/industry-study/roofing-3743.htm

About the Author:

Matt Zielenski is a Senior Analyst at The Freedonia Group, where he covers trends in the use of building materials and related construction products in the US market.