By Emma Peterson. 

Learn about what’s driving the rise of mergers and acquisitions in the modern roofing industry.  

Recently, the roofing industry has experienced a variety of game-changing mergers and acquisitions (M&A). A rise in consolidation to this scale hasn’t been seen since the 1990s and can seem unsettling at first glance. To take a deeper look at what’s going on, Heidi J. Ellsworth hosted Paul Trombitas and Paul Giovannoni of FMI Corp, a leading research firm for the construction industry, for an episode of Contractor Outlook. 

Paul G. gave some context to the history of M&As in the industry, saying, “Over the last 5 to 10 years, you've seen mergers and acquisition activities really ramp up in the broader construction market. While it’s always been present and there's always been certain investors who had interest in the space, it seems like it's steamrolling and gaining momentum.”  Paul G. cites this growth to a change of perception.  

Historically, the roofing industry has been seen as both cyclical and highly volatile – which investors are realizing is not actually true. We saw it happen before our eyes during the COVID pandemic. While much new building and construction work faltered, the service and maintenance side of the market remained strong and resilient. In addition to this shift in perception of the industry, investors realized that the roofing world has a lot of space for growth. Paul G. elaborated, “Investors realized that with family owned businesses, there's a lot of opportunity for improvement both operationally through technology and through growth through acquisition and add-ons.” 

Looking to examples of big M&As in 2025, one of the first ones that likely comes to mind is QXO acquiring Beacon. Paul T. gave some insight into this industry shift, echoing some of Paul G.’s thoughts, saying, “With QXO, I think there was an initial draw because of the idea that roofing was a highly fragmented market. While that’s true for contracting, when you look at it in that roofing distribution space, there's really only three major firms. But it got them interested, and then it turned to a conversation of these digital platforms, everything from configurator tools to full online storefronts and the adoption curve in construction.” In general, the roofing and larger construction industries can be slow to adopt new technology — using AI or online sales. What QXO realized was that acquiring Beacon was a way to get ahead of that curve, to be the ones leading the way into those technologies rather than following.  

Read the transcript, Listen to the episode or Watch the entire recording to learn more about the role of mergers and acqusitions in today’s roofing industry.

By Emma Peterson.

Examine market growth and industry shifts with Paul Trombitas and the FMI 2025 North American Construction Outlook report.

From new tariffs to changing immigration policies and more, 2025 has been an interesting year for the construction industry. To help you get a better understanding of what is going on in our market, FMI Research created a 2025 North American Construction Outlook report. To learn more about this, Heidi J. Ellsworth sat down with Paul Trombitas for an episode of Contractor Outlook. Paul is a partner at FMI with a focus on the building products sector team. This position means that he is incredibly knowledgeable of the dynamic challenges facing members of our industry, whether they are manufacturers, contractors, architects or another type of professional.

When looking at this year’s North American Construction Outlook report, Paul noted that there’s a variety of factors affecting the industry right now. He elaborated, “It's the political climate, affordability rates, technological trends and advancements. On top of it all, you also have generational transitions. The dynamic market we see today is from all of these converging together right now.”  

While a lot of these factors seem challenging and stressful, Paul noted that we are still seeing a very favorable growth market of the construction industry. He explained, “If we look at just 2025 data center spending, it’s anticipated to be $30 billion, which is substantially higher than it was in 2020.” Looking at that in terms of spending, there has been a slight drop in the last five years. Paul shared, “When we look from 2023 to 2024, we saw 6% growth. And then moving from 2024 to 2025, it's 2%. So a slowing of growth, but it is still growth.” And the outlook for the future remains strong. Paul explained, “Overall, we're seeing more stabilization and while we anticipate 2025 to 2026 to be lower growth years, it is then predicted for a return to higher annual growth rates from 2027 to 2028.”

Read the transcript, Listen to the episode or Watch the full conversation to learn more about FMI’s 2025 North American Construction Outlook report and the future of the construction industries. 

By Emma Peterson.

Learn about the challenges and opportunities tariffs present to the building and construction industries.

Speakers Bureau is one of RoofersCoffeeShops®'s newer initiatives. It aims to connect professional speakers and experts in the industry to events and opportunities. RoofersCoffeeShop President Heidi J. Ellsworth explained a bit about the inspiration for this Bureau, saying, “We are regularly asked if we know good speakers for association and company events, continuing education and trainings. The RCS Speakers Bureau highlights exceptional speakers in a directory format offering insights into their past experience and overall roofing industry knowledge."

One such member of the Speakers Bureau is Paul Tombitas. Paul is a partner in FMI Consulting’s strategy practice and leads their building products sector team. In his 10 plus years with FMI, he has worked with clients to develop everything from market strategy to customer-first company cultures. Recently, he published a timely article about tariffs and the implications they have on the building and construction industries.

If you haven’t heard yet, there are new enacted tariffs on Canada and China. Most pressing to our industry are the 25% tariffs on materials like steel and aluminum. These tariffs create both challenges and opportunities for companies. Paul’s fellow FMI Partner Jay Bowman explained, “Project pipelines may slow, and firms will need to adopt strategic countermeasures to navigate this volatile environment. However, these challenges also present opportunities for firms that can adapt their procurement strategies, hedge against risk and position themselves as trusted advisors to clients.”

In the domestic market, manufacturers should look into leveraging domestic supply chains. Because tariffs make imported materials and products more expensive, those that capitalize on domestic options can capitalize on pricing gains and reduced international competition. Those with international facilities should also consider reshoring their operations and/or strategically adjusting pricing to offset increased costs.  

For foreign manufacturers, tariffs provide far more threats than opportunities. Paul writes, “Higher costs make their products less competitive against domestic alternatives, forcing companies to absorb price increases, pass costs to customers or explore alternative operations.” Overall, we can expect to see a rise in cost for foreign materials. Using the example of steel and aluminum, there are prediction of U.S. prices increasing by 8.2% and 5.7% respectively. Ultimately, there are two main paths that foreign manufacturers will take, invest in establishing production facilities in the U.S. (Recticel Group is an example of this) or shift their interests away from the U.S. market to other nations.

To learn more about pricing volatility, market shifts, growth opportunities and more, read Paul’s full article!

By Dani Sheehan. 

Numbers project a slowdown in growth over the next few years, but how will this affect each sector? Listen to this Contractor Outlook newscast to find out and focus your business approach. 

“The quote, ‘the only thing constant is change’ really resonates,” Paul starts. “When we look at the construction space over the next several years, it continues to evolve.” 

You won’t want to miss the twists and turns of a recent Contractor Outlook newscast to better understand factors influencing the construction industry today. Heidi J. Ellsworth sits down with Paul Trombitas of FMI, a leading research company, to breakdown the numbers in the 2024 FMI Building Products Market Overview. They look at current trends and forecast a view of the next five years. 

The construction industry has seen significant growth over the past several years, but the landscape is starting to change. Paul reveals that while the industry experienced substantial growth from 2021 to 2023, the following years will slow down. “What we anticipate moving forward is really a slowdown in growth – not necessarily a decline – but a change in growth from six percent down to three percent,” Paul explains. 

Not all sectors will be affected equally, however. Paul points out that in the residential market, single-family construction is expected to fare well, with a projected seven percent annual growth rate. He’s seeing declines in the multifamily market through 2026. Residential construction accounts for 45% of overall spending, so these trends will have a significant impact on the market. He shares, “It’s a great way to gauge the health and wellness of the overall market in your portfolio of segments. And projects and products are going to be different than the overall market. And it's a way to gauge how you're performing against the marketplace.” 

The forecast provides a tool for evaluating your market position and adjusting your business approach. Whether the market slows down or picks up, understanding the changing dynamics can help you decide whether to be more competitive in filling your backlog or more selective in choosing your projects. 

Read the transcript, Listen to the newscast or Watch the webinar to help you prepare for the future in today’s evolving construction landscape.