In with the new

How do manufacturers adapt in a changing marketplace?


The roofing industry, like every industry, changes over time, and the market accommodates those changes. One of the most notable changes has been the ongoing market share decline of built-up roofing, previously one of the most commonly installed roof systems.

Built-up roof (BUR) systems are composed of alternating layers of bitumen and reinforcing fabrics, creating a monolithic membrane with little chance of developing roof leaks. They have been installed in the U.S. for more than 100 years—some say thousands of years—and proved to be dependable.

However, despite their long track record and myriad benefits, BUR systems have been losing significant market share during the past decade. They currently represent about 20 percent of the roofing market, down from 45.7 percent in 2000.

BUR versus single-ply

According to the 2010-11 NRCA Market Survey, built-up roofing represented 12.3 percent of the reroofing market and 8.3 percent of the new construction market in 2010. Projections for 2011 estimate built-up roofing will represent 11.2 percent of the reroofing market and 6.6 percent of the new construction market.

Conversely, single-ply roof systems, including PVC, TPO and EPDM, have gained significant market share. In 2010, they represented 59.3 percent of reroofing and 63.4 percent of new construction, up from 35.8 percent of reroofing and 39.5 percent of new construction in 2000. Single-ply roofing is projected to represent 59.7 percent of the reroofing market and 66 percent of the new construction market in 2011.

So what is causing built-up roofing's market share to decline?

"The fumes and smell associated with BUR systems are part of it, but it's really about cost," says Maciek Rupar, NRCA's technical director. "They require more time and labor to install, and Producer Price Index data show the price of asphalt has tripled during the past 10 years."

The bitumen typically used in hot BUR systems is asphalt or coal tar. Asphalt is a petroleum product refined from crude oil, and coal tar is derived from the distillation of coal; with oil and coal prices increasing during the past few years, asphalt and coal tar prices have risen, as well.

Conversely, single-ply roof systems are relatively easy to install, requiring less labor, and are more competitively priced.

So how is this shift affecting manufacturers? And how are manufacturers' product lines evolving to remain viable in a changing market?

Evolution

I spoke with several manufacturers, and all seem to agree a market for BUR products and materials remains despite a noticeable decline in sales.

"I don't think we've seen any products fall off the chart completely, but certainly sales of BUR components are showing a downward trend," says Brad Dunn, vice president of sales for Garlock Equipment Co., Plymouth, Minn. "I've seen sales fall pretty dramatically for some products, such as mop carts, but we're selling more kettles than we have in five years. We also sell a great deal of saws and trash chutes for removal."

Reeves Roofing Equipment Co. Inc., Helotes, Texas, also continues to offer built-up roofing materials.

"We still are making them, and they still are being purchased," says Amy Reeves, co-owner of Reeves Roofing Equipment. "We mainly sell roof kettles though the amount we sell is less. We used to make 12 or 13 models about 10 years ago, and now we are down to eight. But I do have quite a few on order right now."

Jimmy Yundt, chief executive officer of Roofmaster Products Co., Monterey Park, Calif., says built-up roofing continues to be a relevant part of his company's business.

"Our BUR product line hasn't really changed," Yundt says. "The sales percentage is down, but we still sell our signature item—our aluminum felt layer. We still sell mops and mop carts, and our mop sales actually have been up during the past couple months.

"We don't foresee built-up roofing completely disappearing because we have many contractors who still say it's the best roof system on the market," he continues. "We have a distributor who covers the Midwest, and a running comment among people in the area seems to be that built-up roofing is dead; yet they continue to sell kettle after kettle, used and new, into that area. So there still is a market—we've just had to broaden our product line."

Yundt says Roofmaster Products has seen an increase in sales of hot-air welders, which has helped offset the decline in built-up roofing sales. However, single-ply installations don't require a lot of additional equipment and therefore don't offer many other opportunities for manufacturers.

"We don't manufacture heat-welding equipment; we sell material handling equipment, but otherwise, there's not a whole lot that's needed," Reeves says.

However, Reeves Roofing Equipment is expanding in other areas.

"We are beginning to offer waterproofing products," Reeves says. "I think quite a few manufacturers are expanding into other industries. We also manufacture a lot more safety equipment than we used to."

Garlock Equipment also is expanding its product offerings in various ways.

"We have a couple retail stores and handle heat-welding equipment from various manufacturers—that's one way we're trying to catch a bit of the single-ply business," Dunn says. "We're also enamored of vegetative roof systems—that's something in which we definitely are interested in participating. And certainly the solar movement, as well—perhaps developing equipment that moves panels up to a roof and around on a roof."

Along the same line, Garlock Equipment is focusing on manufacturing equipment for material transport.

"We've seen a lot of growth in hoist sales," Dunn says. "We know products have to get to the rooftop, so we developed a new hoist that's taken off well. We also developed a ride-on material mover for use on rooftops."

Additionally, the company is expanding its safety offerings.

"We've put enough emphasis on safety to form a separate entity, Garlock Safety Systems," Dunn says. "We manufacture protection systems for skylights and roof hatches, warning lines, perimeter rail systems, cable systems—those types of things. Those same products have allowed us to expand into some industrial markets. We manufacture gates that protect people working on loading docks. For general contractors, we developed a rail system to protect workers that clamps onto the slab of a commercial building during construction."

What's next

Despite the general downward trend in BUR system installations, manufacturers still say their BUR products are viable.

"This is a method of roofing that has been around for years," Yundt says. "People are comfortable with it. It's just that material pricing and labor costs have contributed to built-up roofing's slowdown."

Whether the downward trend continues or there is a resurgence of BUR system installations, manufacturers undoubtedly will continue developing new ideas and expanding their product lines to keep up with the changing marketplace.

Ashley St. John is Professional Roofing's associate editor.

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