Fourth Quarter 2022 Reroofing Survey Shows Continuing Trends as 2023 Begins

Fourth Quarter 2022 Reroofing Survey Shows Continuing Trends as 2023 Begins

The Market Index Survey for Reroofing is an industry-led initiative that takes the pulse of business activity in the United States and Canada on a quarterly basis. For the quarter ending December 31, 2022, respondent feedback reinforced trends that emerged in Q3 with a more pessimistic outlook on business conditions for the steep-slope market versus the low-slope market.

The survey asks respondents to report year-over-year activity for customer inquiries and project contracts as indicators of future reroofing activity. The survey produces indexes for each question. A score of 50 or higher suggests expansion or optimism, while a value below 50 indicates contraction or pessimism. 

For the steep-slope market, the Q4 2022 Customer Inquiries Index declined further to 43.8 from a reading of 48.1 in the prior quarter. The fourth quarter marked the third consecutive quarter with a reading below 50 suggesting persistent headwinds for the steep-slope market in the near term. 

For the low-slope market, the Q4 2022 Customer Inquiries Index continued its drop from highs in early 2022 to a score of 58.6 down from 60.6 in the prior quarter. Overall, the sentiment remains positive albeit weakening as businesses move into 2023.  

Scores for the Project Contracts Index followed similar trends with the steep-slope market score remaining negative at 43.3 for Q4 2022 versus 42.0 for the prior quarter. The low-slope market score remained positive for Q4 2022, but moved lower to 58.9 from 65.5 in the prior quarter.

The survey also asks respondents to report the length of project backlogs as an indicator of economic activity. For the steep-slope market as of January 2023, 73 percent reported no project backlog. Comparatively, respondents in the low-slope market reported longer project backlogs with 53 percent reporting a backlog of 3 months or more, and only 10 percent reporting no backlog. 

The survey is an industrywide effort spearheaded by a coalition of trade associations, including the Asphalt Roofing Manufacturers Association, Canadian Roofing Contractors Association, Chemical Fabrics & Film Association Inc., EPDM Roofing Association, International Institute of Building Enclosure Consultants, Metal Construction Association, National Roofing Contractors Association, National Women in Roofing, Polyisocyanurate Insulation Manufacturers Association, Roof Coatings Manufacturers Association and Single Ply Roofing Industry.

Roofing contractors and consultants doing business in the United States and Canada are eligible to participate in the quarterly survey. For the Q4 2022 survey, 83 percent of respondents were roofing contractors and 17 percent of respondents were roof consultants. Interested parties can sign-up for alerts to patriciate in future surveys at http://eepurl.com/hZH-29. The Q1 2023 survey will open on April 3, 2023. Survey participants receive access to the full survey results. 

About the author: Justin Koscher is the president of the Polyisocyanurate Insulation Manufacturers Association (PIMA). For more information, visit https://www.polyiso.org.

About the Author

Justin Koscher
Justin Koscher is president of the Arlington, Va.-based Polyisocyanurate Insulation Manufacturers Association (PIMA). He previously served as vice president of Public Policy at the Center for Environmental Innovation in Roofing.

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