The coalition of North American industry trade associations representing contractors, consultants and manufacturers released its Quarterly Market Index Survey for Reroofing for the third quarter of 2023, and the overall picture looks better than the year prior.
The survey’s upshot indicates opportunities in the reroofing field improved during 2023’s most recently concluded quarter compared to Q2 in 2022. Eighty-one percent of survey responses came from roofing contractors, and 19% of responses came from roof consultants.
Nearly nine of 10 respondents indicated they primarily work on low-slope roof systems or a blend of low-slope and steep-slope roof systems, at 86%, compared with 14% stating that steep-slope roof systems make up most of their business.
A new question in this year’s survey asked participants identifying as roofing ‘contractors’ to report the number of squares of reroofing material installed by their companies during Q3 2023 compared with the same period one year earlier:
- 51% reported a volume increase
- 25% reported no change
- 24% reported a volume decrease
Half of all respondents across industries indicated their customer inquiries increased, while 28% reported no change in activity, and 22% showed a decrease. Correspondingly, project contracts increased for 50% of respondents, 28% reported no change, and 21% indicated a drop in project contracts.
Other Empirical Data
Based on a 0 to 100 scale, two additional indices in the survey report offered insight regarding customer inquiries and project contracts across market segments; a score of 50 or higher indicates expansion or optimism, while less than 50 portends contraction or pessimism.
The Customer Inquiries Index score industrywide increased to 63.8, a near full-point jump from the previous quarter in 2023.
- The steep-slope reroofing market was a bullish 63, marking a significant increase of 42.3 from the previous quarter, while low-slope reroofing was slightly lower at 58.7; the composite score stands at 69.4.
The Project Contracts Index score for the total industry in 2023 Q3 increased to 63.9 compared with 61 for the second quarter, mirroring the near 1% jump in the preceding index.
- The 2023 Q3 score for the steep-slope reroofing market came in at 77.3; the low-slope reroofing market was 55.3; the composite score for all markets was 67.9.
As of October 2023, 18% of respondents reported no project backlogs; 35% indicated project backlogs of one to two months; 25% showed backlogs of three to four months; more than one in five respondents, 22%, said their firm was backlogged by at least five or more months.
The industrywide survey includes the following trade groups: Asphalt Roofing Manufacturers Association; Canadian Roofing Contractors Association; Chemical Fabrics & Film Association Inc.; EPDM Roofing Association; International Institute of Building Enclosure Consultants; Metal Construction Association; Metal Roofing Alliance; National Roofing Contractors Association; National Women in Roofing; Polyisocyanurate Insulation Manufacturers Association; Roof Coatings Manufacturers Association, and; the Single Ply Roofing Industry.
For information, visit nrca.net.
Contractors and consultants wanting to participate in the next quarter’s survey may sign up for a notification HERE.