Roofing Market Conditions: Understanding 2021 and Knowing What to Expect in 2022
Wow what a year 2021 was from a commercial roofing perspective. The industry faced unprecedented challenges yet experienced a growth rate of 15%. As we enter 2022 there are additional issues that need to be resolved. Understanding and navigating an uncertain roofing market leaves many of our customers asking what is next and trying to determine how to react. To better understand the commercial roofing market let’s examine where we are today and how we got here.
Critical Factors Affecting the Roofing Market
- Roofing contractors are placing orders for materials regardless of backlog; essentially trying to hoard materials. To highlight this fact some materials sales are up 300% percent yet the market only grew 15%.
- There is a shortage of raw material components.
- Several industries create demand for Methylene Diphenyl Disocyanate (MDI) and other raw components used in commercial roofing. Examples include automotive, boats, appliances, furniture, etc. Any manufacturing process that utilizes adhesives, low rise foam, Ethylene Propylene Diene Monomer (EPDM) and Thermoplastic Polyolefin (TPO) based components is further exasperating the roofing material shortage.
Results in the Roofing Market
- There is a current shortage of roofing materials.
- Many manufacturers are sold out through the end of 2022.
- Price increase notifications are being received on a consistent basis.
What to Expect in 2022
- Labor shortages will likely continue as Covid outbreaks appear to be increasing.
- Rolling plant shutdown times are a possibility based on labor, raw material shortages, supply chain and logistic concerns.
- Roofing prices will continue to rise as supply decreases and demand continues to increase.
Suggested Customer Action Steps
- Understand the condition of your roofs and the risks versus rewards of waiting to reroof. Prioritize your projects based on needs and your roof’s life expectancy.
- Understand lead times for product and contract early in the year prior to the busiest roofing seasons of Spring and Fall.
- Be proactive and institute a Preventative Maintenance program to help extend the life of your existing roofs
As we all try to maneuver through the difficult roofing market conditions, please know that CentiMark has multiple solutions that can be customized for your specific needs to help you navigate these uncertain times. As North America’s largest commercial roofing contractor we have excellent partnerships with world class suppliers. Let us demonstrate how we can help you maintain a leak free facility and hedge your risk in today’s commercial roofing market.