The Roof Roof Market continues its positive trend in 2017
According to the 11th edition of Neomar Consulting's annual survey of the Roof Roofing Market, roofing sales appreciated by 11% in volume in 2016 compared to the previous year, amid rising demand for both the segment of new buildings, as well as renovation. After 2015 saw a year-on-year rise in this market figure, we can already speak of an accelerated pace, favored by the high level of consumer confidence as a result of the positive economic situation in recent years.
Explosive growth of the metal roofing
Although for years it has become the number one solution in the market (from a sales point of view), the metallic roofing remains the most dynamic segment (+ 15% increase), rising to 20% in 2016 to over 70% of the total sales volume of roof solutions. It seems that the great price and ease of use, together with the appearance and the chromatic variety (compared to other materials) are the key assets of the rapid development of local metal tile production in the last decade.
Renovations are the main market driver
Returning after the post-crisis period in new housing has its contribution to boosting roof demand, and 2016 was a good year for building new homes. But official statistics show a relatively modest pace in the first half of 2017: a +4% decrease in the number of new dwellings completed and a mere +3% increase in the number of housing permits and +5% in the residential area authorized in the first semester 2017 compared to the first half of 2016. For comparison, the number of completed dwellings had increased by 11% in 2016 compared to 2015 (to more than 50,000 units), while the number of housing permits issued in 2016 was slightly over 80,000 (almost 20% more than in 2015).
Therefore, the renovation remains the main segment, which generates over 70% of the Romanian roofing market. The extensive stock of old homes, especially in the rural area, still creates opportunities in this area for renovations and capital repairs, which the players in the roofing market are struggling to make the best of their lives.
The market will rise again by more than 10% in volume in 2017
According to Neomar Consulting specialists, the analysis of the main factors of the demand for roofing and their evolution in the first half of 2017 suggest a continuation of the positive trend in the field, and the preliminary market information confirms that the growth rate will remain above 10% and in 2017. Continuation of the accelerated growth of imports of pre-painted metal sheet (+ 31% in volume, in the first half of 2017 compared to the first half of 2016, according to official statistics available) as an indicator of the evolution of local production of metallic tiles and the positive evolution of credit for the population , are arguments in favor of the previous conclusion.
Looking ahead, the roofing market remains one with high growth potential, and it is expected that the maturing process in the field will limit annual growth rates to around 10% in the medium and long term. On a competitive side, the offer continues to be atomized, even though a number of players have gradually managed to gain important market shares - on this competitive edge, the maturing process of the market mentioned above may result in certain concentrations, as small players may have difficulty responding promptly to sophisticated demand.
Neomar Consulting will start in January 2018 a new edition of its market research in roofing roofs, a project with a history of over 10 years and the only one of its kind in Romania, which enjoys the support and participation of over 35 players in the industry (large, medium and small, and all segments of the market by type of material). Its results will also validate the extent to which the trends in the current year are confirmed, and will indicate future developments and developments.