Despite the U.S. roofing industry's labor shortage, the sector is in its fourth consecutive year of improved profitability and double-digit percentage sales increases, according to www.businessobserverfl.com.
Financial information firm Sageworks reports this is in large part because roofing contractors are keeping up with demand in new home construction and storm-related damage repair work.
On average, sales among privately held roofing contractors have increased 14 percent during the 12 months ending May 1. That follows a 15 percent increase in 2017 and 13.5 percent increase in 2016.
Meanwhile, the average profit margin for roofing contractors was 6 percent during the 12 months ending May 1. The industry has experienced four consecutive years of margin increases, going back to 4.2 percent in 2014.
"Roofing contractors have experienced stronger sales growth in recent years, tracking pretty closely with sales increases among all types of construction firms in our database and outperforming private companies broadly when you look across all industries," Sageworks Analyst Libby Bierman said in a statement. "And like many subindustries in the construction sector, roofing contractors don't typically have the fattest margins. However, roofers have been able to improve their profitability in recent years."
Still, Sageworks acknowledges the industry faces significant challenges, including the labor shortage and rising material costs.