Navigating Roofing Price Increases from Suppliers + Manufacturers

In recent years, the roofing industry has been hit hard by significant price increases, leaving both homeowners and contractors searching for answers and strategies to cope with the rising costs. The shift…

Estimated Read Time:  5 minutes


Roofing Price Increases

In recent years, the roofing industry has been hit hard by significant price increases, leaving both homeowners and contractors searching for answers and strategies to cope with the rising costs.

  • The shift from an average of $400 to a staggering $600-$800 per square for roofing installations
  • This underscores the urgency to understand and address the factors contributing to this surge.
  • Check out this video with Kyle Van Boxel to get tips on how to combat or read on!

YouTube video

Unpacking the Price Increases

At the heart of the issue are the manufacturers’ consistent price increases, driven by a combination of escalating raw material costs and inflationary pressures. However, the impact on end prices is not merely a reflection of these initial increases. As these costs pass through the distribution chain, they accumulate additional markups, leading to a final price for homeowners that far exceeds the original increase set by manufacturers.

Kyle Van Boxel from Van Boxel Building Supply sheds light on a groundbreaking approach to mitigate these effects. By eliminating traditional distribution channels and offering roofing products directly to the market, his company aims to cut out the middlemen and their markups, thus providing more affordable options for quality roofing materials.

Deep-Dive Strategies for Contractors

Contractors are on the frontline of this battle against rising costs and must arm themselves with effective strategies to stay competitive and profitable:

  • Smart Bulk Purchasing: Leveraging bulk purchases can lead to significant savings on material costs. Contractors should explore direct purchasing avenues from manufacturers or specialized suppliers like Van Boxel Building Supply, who offer enticing deals for bulk orders, thereby reducing per-unit costs and improving profit margins.

  • Strategic Negotiation: The power of negotiation cannot be overstated. Contractors, regardless of their size, should negotiate aggressively with suppliers and manufacturers. This could involve locking in prices for bulk purchases, joining forces with other local contractors to form buying pools, or simply leveraging the competitive landscape to secure better terms.

  • Exploring Alternative Materials: In the quest for cost efficiency, contractors should consider high-quality alternative materials that comply with warranty requirements yet come at a lower cost. Innovative products like branded underlayment can offer both quality and cost advantages, providing a competitive edge without compromising on performance.

  • Lean Inventory Management: Contractors should challenge the prevailing lean inventory practices that contribute to vulnerability to price spikes. By strategically stockpiling materials when prices are favorable, contractors can insulate themselves against future increases, ensuring a steady supply of materials at locked-in prices.

  • Technology and Efficiency: Adopting the latest roofing technologies and improving operational efficiencies can lead to significant cost savings. From advanced roofing software to more efficient installation techniques, there are numerous ways to reduce labor costs and enhance productivity.

Roofing Price Increases – Roofing Industry Statistics for Context

These statistics provide a comprehensive overview of the current state and projected trends within the roofing industry, including market size, growth rates, employment figures, and the impact of material costs on overall pricing:

  1. The global roofing market is projected to reach $156 billion by 2030, with an annual increase of 4.3% (This Old House, 2024)​​.
  2. As of 2023, there are 253,044 roofing contractors in the United States (This Old House, 2024)​​.
  3. The number of employees in the U.S. roofing contractors industry has grown by an average annual rate of 0.6% from 2018–2023 (This Old House, 2024)​​.
  4. The U.S. roofing industry was valued at $23.35 billion in 2023 and is projected to increase at a CAGR of around 6.6% from 2024 to 2032 (, 2023)​​.
  5. Residential roofing demand in value terms is expected to climb at a rapid 8.2% annually, reaching $15 billion in 2025 (, 2023)​​.
  6. The market size of the roofing contractors industry declined by 7.2% in 2022 (, 2023)​​.
  7. The roofing industry’s fatality rate stands at 29.9 per 100,000 full-time workers (, 2023)​​.
  8. In 2023, the average cost for a roof replacement ranges from $17,750 to $33,037 (, 2023)​​.
  9. Slate is the most costly roofing material in the global market, being ten times more expensive than asphalt shingle (House Grail, 2024)​​.
  10. Metal roofs can boost home value by 60.9%, but the initial replacement cost is around $38,600 (House Grail, 2024)​​.
  11. There were 81,175 roofing contractor businesses in the U.S. in 2022, an increase of 1.5% from 2021 (VipeCloud, 2022)​​.
  12. The global market size of the roofing industry was $102 billion in 2020 and is expected to reach $156 billion by 2030 (VipeCloud, 2022)​​.
  13. Commercial roofing makes up 57.0% of the market (VipeCloud, 2022)​​.
  14. In North America, roof replacements account for over 90% of the market both in volume and value (VipeCloud, 2022)​​.
  15. The market size of the roofing industry in 2023 is $56.7 billion, ranking 16th in construction industry market size (VipeCloud, 2022)​​.

Guidance for Homeowners Facing the Surge

Homeowners, too, must navigate these turbulent waters with care. Securing multiple bids for roofing projects is more crucial than ever. This competitive bidding process not only ensures you get the best value for your money but also signals to contractors that their pricing must remain sharp and competitive.

It’s important for homeowners to understand the broader economic forces at play, including global supply chain challenges and market dynamics that extend well beyond the roofing industry. By staying informed and engaging in open discussions with contractors about cost-saving options, homeowners can make more informed decisions about their roofing projects.

The Bigger Economic Picture

The roofing price surge is a symptom of larger economic trends, including inflation and global supply chain disruptions. These factors have a domino effect, impacting not just roofing but many other industries. Contractors and homeowners alike must stay vigilant and adaptable to these ever-changing market conditions.

Forging a Path Forward

In the face of these challenges, both homeowners and contractors can take proactive steps to mitigate the impact of rising roofing costs. From exploring innovative supply chain solutions to adopting new technologies and materials, there are numerous strategies to explore.

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