How 2024’s Roofing Industry Consolidation Wave Is Reshaping Local Service Quality and Pricing for Homeowners

The roofing industry is experiencing unprecedented consolidation in 2024, fundamentally changing how homeowners access roofing services and what they can expect to pay. M&A activity in the roofing sector has increased recently as small and mid-sized independent companies look for succession strategies and financial partners to create growth opportunities, with the roofing industry experiencing notable shifts in 2023, particularly in the residential sector, where private equity involvement notably increased. Roll-ups — acquisitions of multiple roofing companies — became more prevalent in both commercial and residential sectors.

The Scale of Industry Consolidation

Roofing private equity firms are buying more and more roofing businesses. It is predicted that by 2031 the industry will be valued at $90 billion and consolidated to roughly two dozen major roofing companies. This dramatic shift represents a fundamental transformation from the traditional fragmented market structure. Roofing contracting is a highly fragmented industry. For example, the top five players represent less than 5% of the market share in the U.S.

Major distribution consolidation is also reshaping the supply chain. Home Depot’s USD 18.25 billion purchase of SRS in June 2024 added 760 specialty branches and 4,000 delivery trucks to its 2,300-store network. QXO’s USD 11 billion Beacon deal layers artificial-intelligence forecasting onto nearly 600 branches, promising more precise just-in-time deliveries.

Impact on Service Quality: A Mixed Outlook

The consolidation trend presents both opportunities and challenges for service quality. On the positive side, larger consolidated companies often bring enhanced resources, training programs, and technology capabilities. Partnering with leading manufacturers and distributors can provide access to better pricing, streamlined logistics, and supply chain benefits. Collaborations with larger industry players may present growth opportunities, especially as manufacturers keep investing in sustainable, energy-efficient products.

However, concerns arise about the potential loss of personalized service that local contractors traditionally provide. The industry saw heightened levels of professionalism among its players, transitioning away from the traditional mom-and-pop shop model to a more corporate structure. This shift may result in standardized approaches that don’t account for regional climate variations and local building requirements.

Pricing Pressures and Market Dynamics

Consolidation is creating complex pricing dynamics. Truist Securities, which analyzes the construction materials distribution sector, describes the industry as having “notable pricing strength” and being largely consolidated. While this consolidation can lead to economies of scale, it may also reduce competitive pricing pressure in some markets.

Material costs account for up to 60% of project budgets, and over 70% of contractors faced price hikes in 2024 as asphalt, polymers, and shipping charges surged. Concrete and asphalt posted 4.56% quarterly increases, while composition-shingle inflation in Canada signaled similar trends across North America.

For contractors like Bay Area Exteriors, these market changes require strategic adaptation. Roofing businesses must establish relationships with multiple suppliers, track pricing trends, and refine inventory management strategies to remain profitable.

The Local Advantage in a Consolidated Market

Despite industry consolidation, local contractors continue to offer distinct advantages. Bay Area Exteriors, a family-owned company serving Maryland’s Eastern Shore for over 30 years, exemplifies how local expertise remains valuable. We are a locally owned General contracting company that specializes in Roofing, Siding and Gutters. We have over 30 years experience serving the Eastern Shore and all of Maryland! When you choose Bay Area Exteriors as your contractor for any job, you will Find that Honesty, Integrity, Communication and Quality of workmanship is at the forefront of everything we do.

As a GAF Master Elite contractor, Bay Area Exteriors maintains the highest industry certifications while preserving the personal touch that homeowners value. We are a prestigious Master Elite GAF Roofing Installer. We rank among the top 2% of roofing contractors with a commitment to quality and professionalism. Our certification guarantees we meet strict requirements, including proper licensing, insurance, a proven reputation, and ongoing professional training.

Technology and Innovation Driving Change

Consolidation is accelerating technology adoption across the industry. In response, the commercial roofing industry increasingly utilizes existing technology in innovative ways. Case in point, drones have made roof inspections substantially safer and more efficient without risking lives. Smart roofing systems and AI-driven supply chain management are becoming standard practices among consolidated companies.

What Homeowners Should Expect

For consumers seeking roofing services, the consolidation trend means several key changes:

• Enhanced warranties: Consolidated companies often provide stronger warranty programs backed by major manufacturers
• Standardized processes: More consistent project management and communication systems
• Price transparency: Better cost predictability but potentially less room for negotiation
• Technology integration: Improved project tracking, drone inspections, and digital communication tools

However, homeowners should also prioritize finding roofing companies that maintain local expertise and personalized service. Companies like Bay Area Exteriors demonstrate that it’s possible to combine industry-leading certifications with the community focus that ensures projects are tailored to local climate conditions and homeowner needs.

Looking Ahead: Balancing Scale and Service

Even with ongoing recent consolidation trends, the number of roofing companies in the U.S. is forecast to grow through 2027. Small, localized companies that continue to enter the market are driving this growth. This suggests that while consolidation will continue, there will remain space for quality local contractors who can compete on service, expertise, and community relationships.

The roofing industry’s consolidation represents both challenge and opportunity. Homeowners benefit from improved technology, enhanced warranties, and more professional service standards. However, the most successful outcomes occur when these advances are delivered by contractors who understand local conditions and maintain strong community connections.

As the industry continues evolving, homeowners should seek contractors who combine the advantages of industry consolidation—such as strong manufacturer relationships and advanced technology—with the personalized service and local expertise that ensure their specific needs are met. The future of roofing lies not in choosing between consolidated efficiency and local service, but in finding providers who successfully integrate both approaches.