This past month at the Owens Corning Industry Conference, company president Brian Chambers addressed the state of the roofing industry. He focused on our strengthening economy, the housing market and how those factors will affect the future of the roofing industry.
Owens Corning believes that the housing market will have a strong foundation for growth in the coming years. The US economy has remained stable despite global turbulence. As unemployment hit an 8 year low in January, consumer confidence reached pre-recession levels once again. Median household income has been on the rise for 5 years. This is good news for the housing market- home prices are expected to rise and demand is going up. Statistically, the housing market is being driven by the millennials (the 23-year-olds) who either want condos or the dense suburbs where most everything is walkable. This is good news for the housing industry which translates into positive growth in the roofing industry, both commercial and residential.
Housing Market Statistics:
- Housing starts are expected to grow a massive $100,000,000 per year while new home sales will be sustained at around 5% growth.
- Home rental rates expected to continue increasing- consumers are more likely to look at owning a home rather than renting.
- Some of the top 20 home markets saw a decline in 2015, the tech cities nationally saw a growth in home sales.
- Household formations expected to grow at an average 1.4 million annually 2016-19, driving the need for housing.
The roofing industry has seen nation-wide growth in demand- it has increased nationally by 5%. The factors driving the growing demand for roofing products include:
- Replacement Cycle – In the past, aging roofs have simply needed replacement. However, recent technology advancements mean that these roofs being installed now are less likely to need immediate replacement in the future. This will create a diverse service offering (such as roof inspections & maintenance) it that will be critical to the stability of any roofing company’s long-term growth strategy.
- Weather Damage – Damage caused to roofs due to natural disasters
- Economic Factors – The growth in median household income, giving consumers the confidence to invest in their homes.
Owens Corning will remain focused on shingle, components and asphalt and they hope to be “the preferred choice and our distributor’s best partner.” Currently 2x more homeowners trust the Owens Corning brand than any other brand of roofing material. Roofing contractors can leverage this brand recognition for their own benefit- 70% of homeowners feel that brand recognition is important when choosing a roofing system. Owens Corning has some incredible tools and growth initiatives, but they need to be implemented within each region in order to be successful.
New to 2016
Owens Corning plans to launch 3 new products this year:
- ProArmor (A synthetic underlayment)
- RidgeCat (A rolled ridge vent)
- DeckSeal (a self-adhered roofing system)
Contractors can expect to see custom products and packages designed for specific locations. The focus will be on individual contractors & their needs rather than a national program- propelling your company to the next level of success using Owens Corning products. The goal? Partner with their distributors and contractors to grow their business!
Want us to help further your roofing company’s growth? Contact Art Unlimited for information on adapting your business to the online market and making your company successful!