Residential and commercial roofing demand to grow 5% annually

A new research report projects that overall demand forresidential and commercial roofing will increase from 216 millionsquares valued at $8.6 billion in 2007 to 250 million squaresvalued at $10.7 billion by 2012, or 5% compounded average annualgrowth over this time period.

According to the report compiled by Principia Partners, totalNorth American demand for commercial and residential roofing isestimated to be 216 million squares valued at nearly $8.6 billionin 2007, according to Principia Partners. This is down 5% in volumeterms from 228 million squares and down 2% in value from $8.8billion in 2006. Residential markets account for 155 millionsquares valued at $5.3 billion, 72% and 62% of the volume and valuerespectively in 2007.

Commercial markets account for 61 million squares valued at $3.3billion in 2007. Interestingly, this is a decrease in volume of 3%from the 63 million square and an increase in value of 2% from $3the.2 billion in 2006. This is due to a shift from some lower pricedmaterials like EPDM to higher priced products like TPOs, metal,green (garden/vegetative) roofs, etc.

Residential roofing is dominated by asphalt shingles whichaccount for 92% of the volume and 75% of the value respectively.Asphalt shingles as a roofing product type reached nearly $4billion in sales in 2007.

Commercial roofing sales reached $3.3 billion overall in 2007with single-ply products comprising the largest segment. Single-plyencompasses EPDM, TPO and PVC membranes and accounted for 32% ofvolume and 28% of value in 2007.

Roofing material demand is driven by the overall constructionmarket, residential and commercial, and is impacted by suchrelevant factors as interest rates, weather patterns and events(hurricanes, hailstorms), housing starts and other economicindicators.

"It's not just about starts.  Over 75% ofshipment volume and a similar value of roofing material value comefrom repair and re-roofing," said  John Pruett, directorof marketing and new business development at Principia. "This is true not only in the residential sector, but thecommercial sector as well."