Industry Analysis & Industry Trends
The Roofing Contractors industry largely depends on demand from building construction activity in residential and nonresidential markets, both of which have been rising over the past five years. Alongside profit margin expansion, industry operators have increased the scope of their operations to meet accelerating demand due to the housing recovery, causing employee and operator numbers to increase. IBISWorld expects solid growth in industry revenue over the next five years, underpinned by increased investment in housing and commercial building. Increasing home valuations and higher per capita disposable income are also expected to boost consumer spending on home improvements... purchase to read more
Industry Report - Industry Investment Chapter
The Roofing Contractors industry has a low level of capital intensity because most materials are readily available and workers primarily use simple tools to perform installation and repair of roofs and siding. Sheet metal contracting requires somewhat higher startup outlays due to the relatively high cost of metal-cutting equipment.
In 2017, IBISWorld estimates that for every $1.00 spent on wages, industry operators typically spend $0.05 in
capital investment. These minor capital costs include the use and replacement of equipment and vehicles. Capital
intensity decreased marginally during the past five years as wages increased due to an overall tightening US labor market and the industry’s struggle to recruit qualified workers.
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