| SIC Codes: | 1761 |
| NAICS Codes: | 238160 |
The US roofing and siding industry includes about 20,000 companies with combined annual revenue of about $30 billion. Most companies are small, local contractors, with annual revenue less than $1 million. Large commercial roofers include Tecta America and CentiMark. Commercial and residential roofing are quite different, and most companies specialize in one or the other.
Demand for roofing services is closely tied to local real estate construction. This highly fragmented industry has few large companies and little repeat business. Roofing technology is relatively simple and there are no economies of scale aside from the ability to handle several projects at once. Companies compete based mainly on price.
Roofing and siding contractors install and repair commercial and residential roofs and siding, although the majority of industry revenue is from roofing. Contractors often provide siding and sheet metal work in addition because the work techniques are similar. Over half of industry revenue comes from nonresidential jobs. Revenue from reroofing, repair, and maintenance accounts for 65 percent, while 35 percent is from new construction. The average useful life of a commercial roof is about seven years. Reroofing, maintenance, and repairs are often more profitable than new construction, as companies often negotiate these contracts rather than soliciting bids from several competitors. Roof repair involves simple tasks like caulking, fixing leaks, and re-coating. Roof restorations are bigger jobs, involving resurfacing and major repairs. Reroofing costs twice as much as restoring, and involves replacing all major materials.
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