Market Index Survey for Reroofing Finds Expansion in All Markets

July 2023 IIBEC Interface • 37
THE LATEST QUARTERLY Market Index Survey
for Reroofing results suggest that businesses
in all three marketing segments (low-slope,
steep-slope, and combined low-slope/steepslope
reroofing) are in a period of expansion
and optimism.
The most recent Market Index Survey for
Reroofing—sponsored by IIBEC and other
trade associations in the roofing industry
(Asphalt Roofing Manufacturers Association,
Canadian Roofing Contractors Association,
Chemical Fabrics and Film Association, EPDM
Roofing Association, Metal Construction
Association, Metal Roofing Alliance, National
Roofing Contractors Association, National
Women in Roofing, Polyisocyanurate Insulation
Manufacturers Association, Roof Coatings
Manufacturers Association, and Single Ply
Roofing Industry)—shows trends among
reroofing contractors and consultants from the
first quarter of 2023.
SURVEY DEMOGRAPHICS
The Market Index Survey for Reroofing invites
participation from roofing contractors and
roofing consultants whose businesses are in the
steep-slope, low-slope, or blended low-slope/
steep-slope market segments. In this quarter,
Market Index Survey for Reroofing
Finds Expansion in All Markets
Quarterly reroofing report
Join the
Participant
Pool!
IIBEC encourages its members
to participate in future Market
Index Surveys for Reroofing. By
participating, you can help ensure
that the data are robust and fully
reflect industry trends. Keep an
eye on IIBEC’s weekly newsletter
for announcements about survey
participation and results.
Figure 2. Project contracts vs. same quarter previous year: trended comparison.
Figure 1. Customer inquiries vs. same quarter previous year: trended comparison.
38 • IIBEC Interface July 2023
Figure 3. Customer inquiries index. Figure 4. Project contracts index.
The index is equal to the percentage indicating that customer inquiries have
increased when compared to the same quarter of the previous year, plus one half
of the percentage reporting no change. The total is multiplied by 100 to create the
index. A score of 50 or higher suggests expansion or optimism, while a value below
50 indicates contraction or pessimism.
The index is equal to the percentage indicating that project contracts have increased
when compared to the same quarter of the previous year, plus one half of the percentage
reporting no change. The total is multiplied by 100 to create the index. A score
of 50 or higher suggests expansion or optimism, while a value below 50 indicates
contraction or pessimism.
16% of respondents were consultants and the
rest were contractors. Respondents working
primarily in the steep-slope market segment
comprised 18% of the participant pool, whereas
43% of participants came from the low-slope
segment and 39% worked in both segments.
The survey asked respondents to estimate
their company’s annual gross revenues. They
reported revenues ranging from less than
US$1 million (15% of answers), US$1 million
to US$5 million (26%), US$5 million to US$10
million (18%), US$10 million to US$25 million
(20%), US$25 million to US$50 million (9%),
US$50 million to US$100 million (4%), and
more than US$100 million (3%). Four percent of
respondents declined to answer this question.
The regions reporting the most significant
revenue in the latest survey were the South
Atlantic region (Delaware, Florida, Georgia,
Maryland, North Carolina, South Carolina,
Virginia, West Virginia, and the District
of Columbia) and the East North Central
region (Illinois, Indiana, Michigan, Ohio, and
Wisconsin). These two regions represented
22% and 20%, respectively, of the total revenue
reported in the survey.
July 2023 IIBEC Interface • 39
CUSTOMER INQUIRY AND
PROJECT CONTRACT TRENDS
Each quarter, the Market Index Survey for
Reroofing includes two questions related to
business expansion/contraction:
• How does the number of customer inquiries
at the participant’s company for the most
recent three months (Q1 2023 in this survey)
compare with the number from the same
quarter of the previous year?
• How does the number of project contracts for
the most recent three months compare with
the number from the same quarter of the
previous year?
Potential answers for these questions are a
decrease of 5% to 25%, a decrease of more than
25%, no change, an increase of 5% to 25%, or
an increase of more than 25%.
In this survey, 41% of participants reported
an increased volume of customer inquiries,
and 48% reported that they had more project
contracts in Q1 2023 than in Q1 2022. For
customer inquiry and project contract trends
since the fourth quarter of 2020, refer to
Fig. 1 and 2.
Survey data are indexed to indicate
whether the data indicate market expansion
or contraction. An index score equals the
percentage of respondents who reported
increased business plus one-half the
percentage of respondents who reported no
change, with the total multiplied by 100. A
score equal to or greater than 50 suggests
expansion (optimism).
Figures 3 and 4 present the customer
inquiry and project contract indexes for the
low-slope, steep-slope, and blended market
segments. The indexes show expansion in all
three market segments in Q1 2023. The indexes
for the three segments combined were 60.5 for
customer inquiries (up from 56.9 in Q4 2022)
and 62.5 for project contracts (compared with
55.2 in Q4 2022).
The Q1 indexes for the reroofing industry
as a whole, the low-slope segment, and the
combined low-slope/steep-slope segment
continue trends of optimism seen in 2021 and
2022. The index scores of 53.8 in customer
inquiries and 60.0 in project contracts for the
steep-slope market are welcome indicators of
optimism in this market segment after periods
of pessimism at the close of 2022.
PROJECT BACKLOGS
In April 2023, 82% of respondents reported that
their companies had project backlogs. Figure 5
illustrates the project backlog trends by market
segment.