High Demand for Roofing to Continue in 2012

According to a study recently published by The Freedonia Group, Inc., demand for roofing is forecast to grow nearly two percent per annum through 2012 to more than 280 million squares, valued at $15.6 billion. The residential construction market, which accounted for more than 60 percent of total roofing area demand in 2007, is projected to provide the greatest roofing gains through 2012, driven by new construction activity.

Demand for roofing in nonresidential construction markets is projected to grow over one percent per year through 2012, in line with its pace between 2002 and 2007. The outlook for roofing demand in new nonresidential applications is expected to improve, as nonresidential building construction increases. The office and commercial construction market will provide the greatest growth, driven by increased demand in new construction applications.

While new roofing applications are expected to grow faster through 2012, the majority of demand will continue to come from reroofing applications. In 2012, reroofing will account for three-quarters of total roofing demand. Reroofing demand is expected to weaken through 2012, due to past construction cycles that reduced the number of buildings requiring routine reroofing over the forecast period.

Roofing tile and plastic roofing are anticipated to see the fastest gains through 2012. Demand for roofing tile will be driven by the recovery of the residential market, especially in the South and West, where roofing tile demand is greatest. Demand for plastic roofing, which is primarily used in nonresidential construction, will increase as plastic materials supplant bituminous low-slope roofing products. Asphalt shingles will remain the most popular roofing product, owing to their dominant position in the large residential roofing market. Asphalt shingles are forecast to account for more than 80 percent of residential roofing demand.

These and other trends are presented in Roofing, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm. Roofing (published 04/2008, 359 pages) is available for $4,700 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. Information may also be obtained through http://www.freedoniagroup.com/