Roofing Service Industry: 2023 Market Overview
The roofing service provider market is poised to benefit from several growth factors making it an increasingly attractive investment opportunity for private equity partners. FMI’s consulting and investment banking teams have a long history of providing value-added advisory services and market intelligence to participants in the roofing services sector.
Key takeaways:
- Demand for reroofing service, which is 74% of total roofing service spending, is largely nondiscretionary and driven primarily by leaks, deterioration and weather damage.
- The roofing industry is resilient to economic downturns. Often service and maintenance spending increases during these times, creating additional opportunities that tend to have higher gross margins.
- A large portion of the installed base of both residential and nonresidential buildings, including large warehouse and distribution facilities, is expected to be nearing or at the point of replacement over the next decade.
- The competitive landscape for service providers is highly fragmented and ripe with opportunity for consolidation and creation of value through professionalization, service line expansion and scale.
- Strong platforms allow for both geographic expansion as well as growth into ancillary services that leverage an existing customer base.
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