Commercial Reroofing Activity Strong in the First Half of 2018

According to Freedonia Group analyst Matt Zielenski, 2018 is shaping up to be a profitable year for contractors specializing in reroofing jobs – especially with regard to commercial projects.

• While thousands of claims have been processed, many businesses still need repair work after the 2017 hurricane season.
• A number of severe storms that have caused substantial damage to roofs across the US.
• A high level of consumer confidence has encouraged business owners to replace or repair older roofs

Many roofing professionals expect that demand for their services to continue to be strong throughout the rest of the year.  While anticipation of another active hurricane season may increase calls in the second half of 2018, one of the more immediate factors in this flurry of reroofing activity has been the passage of The Tax Cuts and Jobs Act.

New Tax Plan May Help Spur Roof Replacements

On a broad level, the Tax Cuts and Jobs Act has been credited with helping to boost reroofing activity, as many home and small business owners saw increases to their paychecks, while owners of larger businesses made plans to take advantage of other provisions in the plan to announce expansion plans – including those that would require the installation of new roofs.

A provision of the new law that allows small business owners to write off the expense of a reroofing project in the year that the work was performed – instead of over a much longer depreciation cycle – is also expected to drive commercial reroofing activity.  Many owners of small- and medium-sized businesses expect they will able to afford to replace or repair older or worn roofs because they’ll be able to recoup the cost of the reroofing project when they file their taxes next year.  Indeed, some contractors are already using this promise of a rapid return on an investment to encourage business owners to schedule roof replacement jobs.

Low-Slope Roofing Products to See Demand Gains

As more business owners undertake roof repair and replacement projects, demand for roofing products for commercial structures will also rise. Given the large number of commercial buildings with low-slope roofs, it is expected that demand for this type of roofing in particular will post solid gains in 2018.  Low-slope roofing includes:

• plastic roofing membranes, such as those made from TPO and PVC
• rubber (EPDM) roofing membranes
• polymer-modified bitumen membranes, especially those with peel-and-stick backings that reduce installation times
• standing seam metal roofing
• liquid-applied roof coatings that both extend the lifespans of existing roofs or serve as cool roofing products that boost energy efficiency

To Learn More

Organized by the National Roofing Contractors Association, National Roofing Week is an annual summer event intended to increase awareness in the US about the importance of roofs to homes and businesses. For more information on Matt Zielenski's outlook for the roofing industry in the US, check out the Freedonia Group’s wide range of roofing studies, which include:

• Liquid-Applied Roof Coatings in the US by Product & Subregion
• Roofing: US Forecasts by Product, Market, & Subregion
• Metal Roofing in the US by Product, Market, & Subregion
• Low-Slope Roofing in the US by Product, Market, & Subregion
• Asphalt Shingles in the US by Product, Market, & Subregion
• Roofing Distribution Market in the US by Sales Channel, Market, & Product
• Roofing Underlay Market in the US by Product, Market, & Region

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.