Supply Chain Impacts On The Roofing Industry

Even though it is great news that a significant proportion of the population in the United States is getting vaccinated, this is not necessarily true throughout the world. Therefore, supply chain issues will continue to arise, even in the roofing industry. Even though the roofing industry has not been impacted to the same extent as the auto industry, which is having a hard time finding computer chips, there are still impacts the roofing industry is going to feel, particularly as the housing market starts to heat up again. As a result, it is important for contractors to be prepared for how this may impact their industry as well.

The Solar Roofing Industry Is Being Hit the Hardest

Without a doubt, the sector of the roofing industry that has been hit the hardest at the solar industry. Many of these materials come from mainland China, which means that many of the supplies required to complete the production of solar systems are simply not available. Because the majority of the world’s solar roofing panels are manufactured in China, the sector has seen a massive backlog when it comes to business. Roofing contractors who specialize in this area need to be prepared. They may want to branch out to other sectors of the roofing industry until production resumes. 

Raw Materials Are Declining Worldwide in All Areas

In addition, roofing contractors may have a difficult time collecting other raw materials as well. For example, rubber, timber, slate, plastic, and aluminum had all declined worldwide during the past 12 months. The reality is that there hasn’t been enough manpower to collect these raw materials, particularly because a lot of them are harvested in Asia. In addition, a lot of transportation stoppages have impaired the transportation of these raw materials as well. For example, there is a specific area in China that is responsible for producing the overwhelming majority of the world’s collated roofing nails. Because this area has been hit hard by the pandemic, these raw materials are simply not available.

Demand Is Increasing for Roofing Contractors

Even though the global supply chain has been massively impaired by a lot of these issues, the reality is that there is still a lot of demand for roofing contractors. Anyone who has paid attention to the housing market recently has seen that is currently a seller’s market. There simply is not enough inventory to meet the demand of people who are looking to purchase a house. As a result, a lot of construction industries are producing new residential establishments. This means that a lot of roofing contractors being contracted to complete these jobs. Anyone who is interested in expanding their business opportunities might want to jump on a few of these options. 

Looking to the Future of the Roofing Industry

Right now, it is still difficult for roofing contractors to get a lot of the raw materials they need to complete their jobs. Therefore, they may be facing an increase in overhead expenses, which might mean they need to raise their prices. At the same time, roofing contractors may be interested in working for other companies that are currently building new homes. This may be an opportunity to avoid raising their overhead expenses while still accessing regular work opportunities. It will be interesting to see what happens next.