Forbes: The Roofing Industry Continues Its Upward Slope
Buttressed by new home construction and storm-related damage repairs, U.S. roofing contractors are now in their fourth consecutive year of improved profitability and double-digit increases in sales, according to data from Sageworks, a financial information company.
Sales among privately held roofing contractors have increased, on average, 14 percent in the 12 months ended May 1, according to Sageworks’ financial statement analysis. That’s on top of 13.5 percent and 15 percent sales growth in 2017 and 2016, respectively.
The average profit margin for roofing contractors was 6 percent in the year ended May 1, topping a steady annual rise from 4 percent in the 12 months ended May 1, 2014.
“Roofing contractors have experienced stronger sales growth in recent years, tracking pretty closely with sales increases among all types of construction firms in our database and outperforming private companies broadly when you look across all industries,” says Sageworks analyst Libby Bierman. “And like many sub-industries in the construction sector, roofing contractors don’t typically have the fattest margins. However, roofers have been able to improve their profitability in recent years.”