Quarterly report summarizes expansion in reroofing sector

by Christopher Brinckerhoff | 17 November 2023 6:00 am

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The National Roofing Contractors Association (NRCA) announced a coalition of industry trade associations representing contractors, consultants, and manufacturers in the U.S. and Canada has completed its Quarterly Market Index Survey for Reroofing for Q3 2023.

The coalition includes the Asphalt Roofing Manufacturers Association, Canadian Roofing Contractors Association, Chemical Fabrics and Film Association Inc., EPDM Roofing Association, International Institute of Building Enclosure Consultants, Metal Construction Association (MCA), Metal Roofing Alliance (MRA), NRCA, National Women in Roofing, Polyisocyanurate Insulation Manufacturers Association, Roof Coatings Manufacturers Association, and Single Ply Roofing Industry.

The survey results indicate opportunities in the reroofing industry improved during the third quarter of 2023 when compared with the same quarter in 2022.

Eighty-one percent of survey responses came from roofing contractors; 19 percent came from roof consultants. Most respondents (86 percent) indicated they primarily work on low-slope roof systems or a blend of low-slope and steep-slope roof systems while 14 percent indicated they primarily work on steep-slope roof systems.

A new question asked participants who identify as roofing contractors to report the number of squares of reroofing material installed by their companies during the third quarter of 2023 compared with the same quarter in 2022. Fifty-one percent of respondents reported the volume of reroofing materials installed increased, 25 percent reported no change, and 24 percent reported a decrease in materials installed year over year.

Fifty percent of all survey respondents indicated their customer inquiries increased. Twenty-eight percent of respondents reported no change in activity, and 22 percent indicated a decrease. Project contracts increased for 50 percent of respondents, 28 percent reported no change in activity, and 21 percent indicated a decrease in project contracts.

Additionally, two indices offer insight regarding customer inquiries and project contracts across market segments. The indices are based on a 0 to 100 scale. A score of 50 or higher suggests expansion or optimism; a score below 50 indicates contraction or pessimism.

The customer inquiries index score for the total industry increased to 63.8 compared with 60.3 for the second quarter of 2023. The score for the steep-slope reroofing market is 63, a significant increase from 42.3 for the second quarter of 2023. The score for the low-slope reroofing market is 58.7, and the score for the blended low- and steep-slope reroofing market is 69.4.

The project contracts index score for the total industry increased to 63.9 compared with 61 for the second quarter of 2023. The score for the steep-slope reroofing market is 77.3, the score for the low-slope reroofing market is 55.3, and the score for the blended low- and steep-slope reroofing market is 67.9.

As of October, 18 percent of respondents reported no project backlogs, 35 percent indicated project backlogs of one to two months, and 25 percent indicated backlogs of three to four months. Twenty-two percent of respondents reported project backlogs of five or more months.

The complete results of the Quarterly Market Index Survey for Reroofing are available to those who participate in the survey via an online dashboard that enables users to filter results by region and other metrics.

Source URL: https://www.metalconstructionnews.com/news/industry-news/reroofing-sector/

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