Roofing Contractor Business Overview

Roofing contractors install, repair, and maintain roofs on residential, commercial, and industrial buildings. They work with materials ranging from traditional asphalt shingles to modern synthetic products, metal panels, and specialized coatings.

The work involves assessing roof conditions, providing cost estimates, ordering materials, and managing installation teams.

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How Do Roofing Contractors Make Money?

Roofing contractors generate revenue through various installation, repair, and maintenance services for both residential and commercial clients. Common services provided by roofing contractors include:

• New Roof Installation: The largest source of income comes from installing new roofs on buildings.
• Roof Repairs: Regular repair services include fixing leaks, replacing damaged shingles, and addressing storm damage.
• Material Sales: Contractors earn additional income by supplying roofing materials directly to customers. This includes shingles, tiles, metal roofing, and waterproofing materials.
• Specialty Installations: Revenue from installing skylights, solar panels, or green roofing systems. These add-on services supplement standard roofing work.

Industry Statistics

Roofing contractors (NAICS 238160) provide installation and repair services for various roofing systems on residential and commercial buildings. Here are some statistics about the roofing industry.

Roofing Contractor Industry Size & Growth: The roofing industry generated $51.3 billion in revenue last year. The industry experienced a decline in revenue, with an average annual decrease of 3.0% over the previous five years. However, projections suggest some growth in the coming years due to expected interest rate cuts, which should stimulate new residential construction activity. (IBISWorld)

Number of Roofing Contractors: There are 99,203 roofing businesses operating across the country, showing steady growth at 3.1% annually over the past five years. The industry remains highly fragmented, with the two largest companies, Tecta America Corp. and CentiMark Corporation, each controlling less than 5% of the market. Most contractors operate within regional markets, competing for local residential and commercial projects. (IBISWorld)

Roofing Contractor Profit Margin: Roofing contractors have experienced declining profit margins due to rising labor costs and increased competition. The combination of worker shortages and price-based competition among contractors has put pressure on net profit margins throughout the industry to an average of 8.4%. (IBISWorld)

Also See: Ideas for Naming a Roofing Business

Costs To Start a Roofing Contractor Business

Starting a roofing contractor business typically costs between $3,000 and $15,000, though costs can increase significantly if purchasing vehicles is necessary. This range covers the basics needed to begin operations and handle initial projects.

There are several expenses to consider when starting a roofing business. Here are some of the common startup costs:

Equipment and Tools: A basic set of roofing equipment includes ladders, safety harnesses, nail guns, compressors, and hand tools. For a new contractor starting from scratch, these items typically cost between $2,000 and $8,000.

Insurance and Bonding: Liability insurance, workers’ compensation coverage, and contractor bonds are required before taking on projects. Initial insurance costs often range from $2,000 to $15,000 annually.

Basic Supplies: Having a small inventory of basic supplies like nails, underlayment, flashing, and sealants helps with repairs and small jobs. These items typically cost between $500 and $1,000.

These estimates represent general ranges, and actual costs will vary based on location, business size, and types of projects planned.