NAICS 324122 Quarterly Industry Report
Asphalt Shingle and Coating Materials Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 324122Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 324122 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the asphalt shingle and roofing materials sector, drawing on data from the U.S. Census Bureau[4] and Department of Housing and Urban Development[7] construction statistics. Additional data is drawn from Bureau of Labor Statistics[8].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 324122 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the asphalt shingle and coating materials manufacturing industry.
Industry Definition & Overview
Asphalt Shingle and Coating Materials Manufacturing (NAICS 324122) encompasses establishments primarily engaged in saturating purchased mats and felts with asphalt or tar and manufacturing asphalt and tar roofing cements, coatings, and other asphaltic building materials from purchased feedstocks. Products include residential strip and dimensional asphalt shingles, roll roofing, saturated felts, roofing coatings, waterproofing membranes, and foundation sealants. According to the U.S. Census Bureau[4], approximately 100 establishments employ over 10,000 workers in this sector, generating annual revenues closely tied to residential construction and reroofing activity cycles.
Residential reroofing represents the largest demand driver, as asphalt shingles cover the majority of single-family homes in North America with typical replacement cycles of 15 to 30 years depending on product grade and climate exposure. The Bureau of Labor Statistics[5] reports production roles including shingle line operators managing high-speed coating and cutting equipment, quality technicians testing wind resistance, fire ratings, and weathering performance, warehouse workers handling heavy palletized shingle bundles, and maintenance technicians servicing continuous coating and granule application systems.
Per the SBA Office of Advocacy[6], the industry is concentrated among several major roofing manufacturers who operate multiple plants, though regional producers of specialty coatings, waterproofing products, and modified bitumen membranes operate successfully at smaller scale. Storm damage restoration following hurricanes, hailstorms, and severe weather events creates periodic demand surges that can strain production capacity and influence regional pricing.
What's Included in This Industry
- Valuation multiples benchmarked to asphalt shingle and roofing materials producers
- Revenue and EBITDA trends for domestic roofing materials manufacturing operations
- SBA lending data and financing terms for NAICS 324122
- Comparable transaction data from recent roofing materials company acquisitions
- Industry risk factors including asphalt pricing, housing cycles, and storm demand variability
- Workforce composition and labor cost benchmarks for shingle manufacturing operations
- Regional market analysis covering roofing materials production and distribution centers
- Capital expenditure benchmarks for shingle line and coating equipment investments
- Growth projections tied to housing starts, reroofing cycles, and cool roof technology demand
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Petroleum and Coal Products Manufacturing | 324 |
| Industry Group | Petroleum and Coal Products Manufacturing | 3241 |
| NAICS Industry | Asphalt Paving, Roofing, and Saturated Materials Manufacturing | 32412 |
| National Industry | Asphalt Shingle and Coating Materials Manufacturing | 324122 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 324110 | Petroleum Refineries | Petroleum refineries producing oxidized asphalt and roofing grade asphalt flux consumed as the primary binding material in shingle and coating manufacturing |
| 324121 | Asphalt Paving Mixture and Block Manufacturing | Asphalt paving mixture manufacturers consuming similar purchased asphaltic feedstocks through related manufacturing processes for construction industry applications |
| 236118 | Residential Remodelers | Residential remodeling contractors coordinating reroofing projects that drive replacement shingle demand through homeowner renovation and storm damage restoration |
| 423720 | Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers | Plumbing and heating equipment merchant wholesalers and building material distributors delivering roofing products from manufacturing plants to contractor supply yards |
| 212319 | Other Crushed and Broken Stone Mining and Quarrying | Sand and gravel mining operations producing roofing granules, ceramic-coated minerals, and aggregate materials applied to asphalt shingle surfaces for weathering |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 12.4% | 22 |
| 2 | California | 10.7% | 19 |
| 3 | Ohio | 8.4% | 15 |
| 4 | Florida | 7.3% | 13 |
| 5 | Georgia | 5.6% | 10 |
| 6 | Alabama | 5.1% | 9 |
| 7 | Arizona | 5.1% | 9 |
| 8 | Indiana | 4.5% | 8 |
| 9 | Pennsylvania | 4.5% | 8 |
| 10 | Michigan | 3.9% | 7 |
% Of Establishments
0%
12%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a roofing materials manufacturer?
Asphalt shingle and coating manufacturers typically trade at 6x to 9x EBITDA, with the highly concentrated industry structure and strong housing market fundamentals supporting premium valuations for well-positioned producers. Per U.S. Census Bureau[4] data, the limited number of shingle manufacturers and high barriers to entry including capital intensity and distribution relationships support stable competitive positioning.
What SBA loan options are available for roofing materials manufacturers?
The SBA 7(a) loan program[10] provides up to $5 million for acquisitions and equipment, while the CDC/504 program[11] finances production line improvements and facility expansion. Industry 1,100-employee small business threshold for NAICS 324122 allows mid-size specialty coating and waterproofing manufacturers to qualify for SBA lending programs.
How do housing starts and reroofing cycles drive shingle demand?
New residential construction generates initial shingle demand while the larger reroofing market reflects replacement cycles driven by product aging, storm damage, and homeowner renovation decisions. Per Department of Housing and Urban Development[7] housing data, reroofing activity typically exceeds new construction demand by several times, with replacement cycles accelerating in storm-prone regions.
How do severe weather events affect roofing materials demand?
Hurricanes, hailstorms, and tornadoes generate surge demand for replacement shingles that can strain regional production capacity and drive price increases. Per Federal Emergency Management Agency[12] disaster declaration data, major storm events create multi-quarter demand spikes in affected regions that benefit manufacturers with production capacity and distribution networks positioned to respond quickly.
What raw materials drive costs for shingle manufacturers?
Oxidized asphalt, fiberglass mat, roofing granules, and packaging materials represent the primary cost components, with asphalt pricing tied to crude oil markets. Per U.S. Energy Information Administration[13] petroleum data, asphalt prices track crude oil with some lag, making petroleum market conditions a primary factor in shingle manufacturing cost structures.
What is the SBA size standard for asphalt shingle manufacturers?
The SBA[9] classifies businesses with up to 1,100 employees as small for NAICS 324122 asphalt shingle and coating materials manufacturing. While major shingle manufacturers typically exceed this threshold, specialty coating, waterproofing, and modified bitumen producers often qualify for SBA programs.
How are sustainability trends affecting roofing materials manufacturing?
Cool roof reflective shingle technologies, recycled content initiatives, and recyclable shingle programs are responding to building code energy efficiency requirements and sustainability expectations. Per EPA[14] Energy Star program data, qualifying reflective roofing products can reduce building cooling energy consumption, creating market differentiation opportunities for shingle manufacturers.
What are key factors in roofing materials company acquisitions?
Acquirers evaluate production capacity and line speed, distribution network coverage, brand recognition among roofing contractors, raw material supply agreements, and regional market position. Per U.S. Census Bureau[4] industry data, the concentrated industry structure means acquisitions often involve either major strategic buyers expanding geographic coverage or private equity investors pursuing platform strategies in building products.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Census Bureau census.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA Office of Advocacy advocacy.sba.gov
- [7]Department of Housing and Urban Development hud.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]SBA size standards sba.gov
- [10]SBA 7(a) loan program sba.gov
- [11]CDC/504 loan program sba.gov
- [12]Federal Emergency Management Agency fema.gov
- [13]U.S. Energy Information Administration eia.gov
- [14]EPA epa.gov
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