Industry Focus

A difficult year


By all accounts, 2002 has been a struggle for the roofing industry. And it's anyone's guess how 2003 will end up.

In this issue, you'll find our annual industry forecast in which roofing contractors explain how they regard the state of the industry (see "Tough times," page 18). Similarly, I asked some roofing material manufacturers what they think about the industry and economy and their outlooks for next year.

Bill Collins, president and chief operating officer of GAF Materials Corp., Wayne, N.J., and Nick McClintock, vice president of exterior systems business for Toledo, Ohio-based Owens Corning, believe laminate shingles are gaining market share in the residential (steep-slope) arena.

"Consumer demand for aesthetically pleasing products that perform is the key driver in material use," McClintock says. "In fact, dimensional or laminate shingles have become the standard in new construction, as well as reroofing applications."

For commercial (low-slope) applications, Collins anticipates growth in TPO membranes and decreases in EPDM, built-up and torch-applied membranes. In addition, Jim Hoff, vice president of marketing for Firestone Building Products Co., Carmel, Ind., has seen requests for thicker, more durable single-ply and modified bitumen membranes and applications.

Predicting the economy often seems futile, but there are indicators that can predict the way a market will turn. And for the roofing industry, a primary indicator is asphalt prices.

"With asphalt costs at historically high levels—and probably going higher—industry increases [for asphalt-based products] for early 2003 are real, needed and may be one of many," Collins explains.

2002 saw the economic fallout from Sept. 11, 2001. A war on terrorism and the threat of one with Iraq caused a recession in the low-slope roofing market, Collins says.

McClintock states managing raw-material costs and availability and maintaining satisfactory inventory and supply levels caused some difficulties in 2002.

According to Collins and McClintock, these problems will continue.

Hoff cites an additional concern: "Unfortunately, the roofing industry in particular is handicapped by an unrealistic 39-year tax depreciation schedule covering ... commercial buildings. As an industry, we need to address this burdensome tax issue by seeking other affected groups ... and making a concerted effort to get the law changed."

McClintock offers one suggestion to roofing material manufacturers: "Stay the course. We must continue to invest in the industry, our products and our channels of distribution."

Ambika Puniani is editor of Professional Roofing magazine and NRCA's director of communications.

To reach me, write 10255 W. Higgins Road, Suite 600, Rosemont, IL 60018-5607; telephone (847) 299-9070, Ext. 255; or e-mail apuniani@nrca.net.

COMMENTS

Be the first to comment. Please log in to leave a comment.