Asphalt Shortage


#1

Ok I am that politically savvy, however I do know that this last storm season we had a heck of a time getting shingles out in Oklahoma. Mainly do to the asphalt shortage. Does anyone know if this new administration is going to assist with this shortage. Oklahoma already has been hit with an earlier storm are we in for another rough year?


#2

The stimulus plan that just got passed is going to be heavy on road construction, so a lot of asphalt will be used up, just due to that fact, so i would expect that the answer is, yes, expect significant price increases and shortages again.

Ed


#3

As high as they have raised the shingle prices there is no way in he** that they will lower prices-if anything-they will justify more and more raising of material prices by way of shortages in the various component ingredients needed to make the shingles. The shortage of material will get even tighter as we go into the seasons in not only the year ahead but the years ahead as justification for continued high prices. We, the contractors, will have to adjust and get more in our contract prices for doing roofs. We shall have to work harder at keeping the other component costs down.


#4

U.S. Roofing Market Weathers Economic Storm With Steady Projected Progress Through 2013

NEW YORK, NY - The unraveling of the American economy wasn’t enough to prevent the U.S. market for roofing products from growing modestly with a gain of 3% from roughly $10 billion in 2007 to almost $11 billion in 2008, notes industrial market research publisher SBI in the all-new report, “Roofing Materials in the U.S., 2nd Edition.” Growth was primarily attributed to sharp increases in average selling prices of asphalt shingle and coating materials, which accounted for 70% of the U.S. roofing market in 2008 and consequently lessened any volume declines in other roofing categories.

Long-term expectation for the roofing industry is sunny as the market’s growth is projected to correlate with the inevitable recovery of the economy as a whole. SBI ultimately forecasts that the U.S. roofing market will grow at an unsteady compound annual growth rate (CAGR) of 2% through 2013 to reach almost $12 billion.

“Moderate recovery is expected to begin in 2010, and then accelerate in 2011 and beyond as demand picks up, prices increase, and production and supply is constrained. By 2013, totals should approach the market’s 2006 peak of $12.1 billion, which was achieved shortly before the housing market declined and the economy first showed signs of slowing,” says Shelley Carr, associate publisher of SBI.
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Expectations for 2009 are not as promising. SBI forecasts a contraction of approximately 16% with market totals slightly above $9 billion for the year due to anticipated declines in average selling prices and soft end-user demand.

“Roofing Materials in the U.S., 2nd Edition” features detailed data and analysis describing the U.S. market for roofing product manufacturing. The report examines the value of the market, various components of trade, end-user markets, and economic factors affecting the industry. This edition also explores housing related indicators, product and market trends with expanded coverage of green product trends, and competitive issues that impact roofing manufacturing. For further information visit: sbireports.com/Roofing-Materials-2092665/.

About SBI

SBI (Specialists in Business Information) publishes research reports in the industrial, energy, building/construction, automotive/transportation and packaging markets. SBI also offers a full range of custom research services. For more information visit dmontuori@marketresearch.com.

Contact:
Don Montuori
Packagedfacts.com
240-747-3028
dmontuori@marketresearch.com


#5

Here is a packaged fact…My sales man got canned due to slow sales…from 10 mill. to 4 mill…and they may close the branch completely…That tells me I am not the only 1 warming to couch cushions…I am starting my 1st. roof for the 09 season Thursday, It is for a friend,and he is going to have a few buddies to help rip,to save money…Kinda tells me what this year will be like,lol…


#6

Jwoolf, Its great knowing his friends will be helping . . . My sister in laws husband wants the roof done to his house and I was already pretty much going to do it at my cost and he said it was too high.

He did offer me to come and help with his friends so they will at least have ONE person there who knows what hes doing. I told him its not worth my time too babysit your friends when me and my guys can come knock it out within a day. Now that has started a family feud.

On the other hand, I have had two homeowners ask if they could tear off and prep the deck and then we come and finish. One of them never started and the other got a little 5x5 area done before he called us to sign a contract. Another one told me he would help clean up if it would save him moeny. People these days.


#7

Yeah I know what you mean BamBam…Here we go!
I called to tell him I have a delivery scheduled,and he says now he can’t get a hold of his friends…I can see me doing this job alone…Not like I don’t do that all the time anyway,but I get paid $$$ for it…


#8

Guys, I guess things are a bit different for me (personally). I keep my overhead low & as a contractor who primarily works subs (it’s the way things go here in Texas, so hold off on the foul language), but I’m having a decent year.

On top of that, I just had a great & tasty hailstorm walk through & I’m already backed up 10 deep on inspections.

A buddy of mine as of Friday (2 days after the storm) had 3 contingency contracts already signed on.

I’d invite some of y’all to come down here, but I don’t know if you can work for $ 50.00 a square for a basic walkable on labor… & I pay more than most places around town offer (both to start as well as steeps, 2nd story, etc).