ROOFING IN CHINA to 2012 (Industry forecasts for 2012 & 2017)

Abstract

Demand for roofing materials in China is forecast to rise 4.1 percent per annum to 2.7 billion square meters in 2012, valued at 70 billion yuan. Gains will be fueled by rising building construction expenditures in both new, and improvement and repair applications, benefiting from China' s ongoing urbanization and industrialization. However, a moderation in urban real estate markets and export sales will constrain building construction expenditures and industrial sector investment, respectively, restraining related roofing sales in the short term.

Elastomeric and plastic roofing will see the best prospects among the various roofing materials through 2012, increasing at annual rates in excess of six percent. Growth will derive from supportive government policies and increasing foreign investment, and these roofing materials will continue their inroads against built-up and asphalt roll roofing. However, concrete and clay tiles, and built-up and asphalt roll roofing will continue to account for the largest portion of roofing materials, representing 84 percent of total roofing demand in 2012.

Roofing demand in the residential segment is expected to rise 3.2 percent annually to 1.5 billion square meters in 2012, trailing average roofing demand as a whole. Spending decreases in new housing construction due to falling house prices in major Chinese cities and a lack of credit for developers will constrain residential construction spending growth, thus dampening roofing gains. However, advances will be driven by China' s ongoing urbanization efforts and rising income levels, leading to improved living standards and better housing quality. In addition, China' s Flat-to-Slope Conversion Project will further fuel gains for residential roofing. This project, which is targeted mostly at residential apartment buildings, will continue to be implemented in major cities in China and improve both the building' s function and aesthetic appeal through converting flat roofs to sloped roofs. Demand for roofing in the nonresidential building market is forecast to increase 5.3 percent annually through 2012, benefiting from sustained government investment in institutional buildings and foreign investment in value added manufacturing facilities, as well as by the growing use of high-end products in many of these applications.

Study coverage

This new 240-page Freedonia industry study, Roofing in China, presents historical demand data (1997, 2002 and 2007) plus forecasts for 2012 and 2017 by roofing product, market and Chinese geographic region. The study also considers market environment factors, assesses industry structure, evaluates company market share data and profiles 30 industry participants.