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Freedonia Market Research Blog 2 Key Ways Commercial Construction Spending to Drive Commercial Roofing Demand

2 Key Ways Commercial Construction Spending to Drive Commercial Roofing Demand

by Sarah Schmidt

November 27, 2018

After several years of depressed demand following the Great Recession, commercial roofing sales reached a high level in 2017, fueled by reroofing activity in the wake of above average storm activity and gains in commercial construction. While storm-related reroofing activity is projected to taper off once repairs to damaged structures have been made, commercial building construction activity is expected to continue to rise going forward, spurring gains in commercial roofing demand, particularly in the following market segments:

  • Office, lodging, and retail structures
  • Manufacturing plants

1. Above Average Growth in Office, Lodging, & Retail Markets

Above average gains in office, lodging, and retail construction spending through 2022 will cause demand for commercial roofing products used in this segment to rise at a solid pace. Key market drivers include:

  • Increasing construction of office buildings, which supports demand for plastic, rubber, and bituminous membranes
  • Continuing advances in hotel construction
  • Rising use of prefabricated metal building components – including roofing – in the construction of light commercial structures, such as quick-service restaurants, to reduce the time and expense of construction jobs
  • The construction of outdoor shopping malls, many of which feature steep-slope standing seam metal roofs to create visually appealing exteriors

2. Manufacturing Expansions Spur Need for Roofing on Commercial Buildings

Commercial building components – including roofing – are used extensively in manufacturing facility construction, and US manufacturing activity is expected to post solid gains going forward, bolstered by:

  • Continuing interest in “re-shoring” as firms relocate or expand their manufacturing presence in the US to take advantage of low energy prices (especially of natural gas)
  • Firms looking to minimize the effect of tariffs imposed by the US Government on a long list of imported products by opening or relocating plants in the US

Increased manufacturing activity will lead to growth in industrial construction expenditures as new manufacturing plants are built. This will support demand for a broad range of commercial roofing materials, especially large standing seam metal roofing panels, which are frequently specified for their:

  • Durability
  • Corrosion resistance
  • Elevated seams (which provide superior leak resistance properties)
  • Structural strength (which allows it to be used on structures with wide roof expanses)

Want to Learn More?

For more information about the size and growth of the US commercial roofing market, check out Commercial Roofing in the US, a new study from The Freedonia Group.

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. 

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