United Asphalts reflects on Q1 and offers predictions for 2024

Executive Vice President of Sales and Marketing Bud Polston at United Asphalts shares his thoughts on what lies ahead in 2024.

This year really is flying by. It’s hard to believe that we are a third through 2024. It seems like a good time to reflect on Q1 and talk about what the remainder of this year might look like. Forecasting is difficult amidst continuous change in our industry but as the saying goes, the only constant in life is change and the roofing/building materials industry has really lived up to that since 2020.

Mergers and acquisitions continue to make headlines in our industry. From distribution to manufacturers to contractors, private investment companies are seeing the financial viability of our industry, and they are jumping in. I have even seen this in our independent rep agencies. Announcements of independent distributors being purchased by the likes of ABC and Beacon come almost weekly. But purchases like The Home Depot acquiring SRS will shift the business model that has been our norm even more.

Most economic indicators seem to say we are hovering just above that soft landing we were hoping for coming out of covid. Consumer spending, wages and unemployment rates are all very positive in the U.S. And compared to the rest of the world, we are doing great. It’s basically consumer sentiment that remains low if you listen to the media. I wonder if that might be in part due to the depressed global environment we live in post-covid. 

Regardless, I actually feel pretty optimistic, especially for built-up roofing. As I have traveled to all our key markets during Q1 and visited Washington D.C. for Roofing Day, I have felt as though 2024 started soft but it is about to ignite. We have been quoting huge government projects, schools, and data centers for AI processing that are launching later this year and into next year, all of which are positive indicators.

With less competition in the asphalt space, new opportunities are emerging. And as natural disasters and severe weather events continue to prove that a BUR system is the best option to truly stand up to these extremes, we are seeing a shift in commercial specifications. Insurance companies and property management companies are asking harder questions about sustainability, recyclability and other impacts on our environment. Asphaltic products that can rejuvenate a roof and extend its life, keeping old roofs out of landfills, is a segment that should only grow in the coming years.

Unfortunately, price increases for raw materials are hitting again. These increases have not achieved a level we’ve been unable to absorb to date, but a price increase seems imminent in Q2. We will make a formal announcement in the weeks to come, giving at least 30 days notice. So, if you have large project coming, please check in now with your local representative to secure pricing. Explore our rep map here.

We know there will be challenges this year, but we are prepared to overcome them and continue to ship the best quality asphalt products and provide the best customer service to our loyal customers.