NAICS 423330 Quarterly Industry Report
Roofing, Siding, and Insulation Material Merchant Wholesalers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 423330Sector: Wholesale Trade (42)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 423330 draws on data from the U.S. Census Bureau[5] economic profiles, Bureau of Labor Statistics[6] employment surveys, and SBA size standard publications[7]. Our research team tracks roofing material shipment volumes, storm repair demand patterns, and building envelope product trends to provide valuation context for roofing and siding wholesale operations. Updated quarterly, each data point is sourced to its originating federal or institutional database.
Industry Snapshot
Key metrics for the roofing, siding, and insulation material merchant wholesalers industry.
Industry Definition & Overview
Roofing, Siding, and Insulation Material Merchant Wholesalers (NAICS 423330) encompasses establishments primarily engaged in the merchant wholesale distribution of nonwood roofing materials, nonwood siding materials, and insulation products. These distributors purchase asphalt shingles, metal roofing panels, vinyl and fiber cement siding, commercial roofing membranes, and insulation products from manufacturers and resell them to roofing contractors, siding installers, building material dealers, and general contractors.
The industry serves both the new construction and reroofing markets. Storm damage replacement is a major demand driver, as hail, wind, and hurricane events create sudden spikes in roofing material orders across affected regions. According to the U.S. Census Bureau[5], about 592 businesses operated in this industry with approximately 43,500 employees. Distributors maintain branch warehouse networks with roof-loading delivery capabilities, using specialized crane trucks to place material bundles directly on rooftops at job sites.
Wood roofing and wood siding products are excluded from this classification and fall under NAICS 423310. The industry has a high concentration ratio, with several large national distributors controlling a significant share of the roofing material supply chain. Branch density and delivery speed are critical competitive factors, as contractors need materials on-site within tight project schedules. Energy code changes have increased demand for higher-performance insulation products distributed through these wholesale channels.
What's Included in This Industry
- Asphalt shingle wholesale distribution
- Metal roofing panel wholesale operations
- Commercial roofing membrane wholesale distribution
- Vinyl siding wholesale operations
- Fiber cement siding wholesale distribution
- Insulation material wholesale operations (fiberglass, foam, mineral wool)
- Roofing underlayment and ice barrier product wholesaling
- Gutter and downspout wholesale distribution
- Flashing and roofing accessory wholesale operations
- Exterior trim and soffit wholesale distribution
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Wholesale Trade | 42 |
| Subsector | Merchant Wholesalers, Durable Goods | 423 |
| Industry Group | Lumber and Other Construction Materials Merchant Wholesalers | 4233 |
| NAICS Industry | Roofing, Siding, and Insulation Material Merchant Wholesalers | 42333 |
| National Industry | Roofing, Siding, and Insulation Material Merchant Wholesalers | 423330 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 423310 | Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers | Lumber and millwork merchant wholesalers distribute wood roofing, wood siding, and related building products excluded from the nonwood materials covered here |
| 423320 | Brick, Stone, and Related Construction Material Merchant Wholesalers | Brick, stone, and construction material merchant wholesalers distribute masonry exterior products through separate channels from roofing and siding distribution |
| 423390 | Other Construction Material Merchant Wholesalers | Other construction material merchant wholesalers distribute additional building envelope products like glass and hardware not covered by roofing and siding codes |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Florida | 8.1% | 284 |
| 2 | Texas | 8.1% | 282 |
| 3 | California | 6.6% | 232 |
| 4 | Pennsylvania | 4.7% | 165 |
| 5 | Ohio | 4.1% | 144 |
| 6 | North Carolina | 3.9% | 137 |
| 7 | Illinois | 3.9% | 135 |
| 8 | Georgia | 3.1% | 108 |
| 9 | New York | 3.0% | 105 |
| 10 | New Jersey | 2.9% | 100 |
% Of Establishments
0%
8%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
120
Total SBA Loans
$110.6M
Total Loan Volume
$921K
Average Loan Size
10 yrs
Average Loan Term
10.27%
Average Interest Rate
1,672
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[7] classifies Roofing, Siding, and Insulation Material Merchant Wholesalers under NAICS 423330 with a size standard of 200 employees. Industry industry includes both large national distributors that exceed this ceiling and many smaller regional and independent branch operators that qualify as small businesses. Qualifying firms can access SBA lending programs[8] for branch expansion, crane truck fleet purchases, inventory financing, and working capital to support storm-driven demand surges. Eligible businesses can access SBA 7(a) loans[9] for working capital, equipment, and acquisition financing, while 504 loans[10] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 16 | $31.1M | $1.9M |
| 2 | Newtek Bank, National Association | 24 | $25.6M | $1.1M |
| 3 | Mid Penn Bank | 8 | $19.8M | $2.5M |
| 4 | First-Citizens Bank & Trust Company | 8 | $14.9M | $1.9M |
| 5 | City National Bank of Florida | 8 | $10.0M | $1.3M |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 423330?
NAICS 423330 covers merchant wholesalers distributing nonwood roofing materials, nonwood siding, and insulation products. These include national roofing distribution chains, regional siding and insulation suppliers, and independent branch operators. Per the U.S. Census Bureau[5], about 592 businesses operated in this industry with approximately 43,500 employees.
How is NAICS 423330 structured within the classification system?
This code belongs to Industry Group 4233 (Lumber and Other Construction Materials Merchant Wholesalers), Subsector 423 (Merchant Wholesalers, Durable Goods), and Sector 42 (Wholesale Trade). Sibling codes include 423310 (lumber), 423320 (brick and stone), and 423390 (other construction materials).
What is the SBA size standard for NAICS 423330?
The SBA[7] sets the size standard at 200 employees. Businesses with fewer than 200 employees qualify as small businesses for federal contracting set-asides and SBA-guaranteed loan programs.
Which NAICS codes are most closely related to 423330?
Sibling codes 423310 (lumber, which includes wood roofing and siding), 423320 (brick and stone), and 423390 (other construction materials) cover related building product categories. Roofing contractors (238160) and siding contractors (238170) are the primary customers. Per Census Bureau NAICS definitions[11], the nonwood distinction is the key boundary between 423330 and 423310.
What industries interact most with roofing and siding wholesalers?
Roofing contractors (238160) consume the largest share of distributed products. Siding contractors (238170) and insulation contractors (238310) are also major buyers. Per Bureau of Labor Statistics[6] data, construction trade employment levels drive wholesale roofing material demand, with storm events causing regional demand spikes.
What specific activities are included in NAICS 423330?
Activities include distributing asphalt shingles, metal roofing, commercial membranes, vinyl and fiber cement siding, fiberglass and foam insulation, roofing underlayment, gutters, flashing, and exterior trim. Many distributors offer roof-loading delivery using crane trucks. Per Census Bureau definitions[5], wood roofing and siding distribution falls under 423310 rather than this code.
Can roofing and siding wholesalers access SBA loans?
Yes. Distributors with fewer than 200 employees qualify for SBA loan programs[8] including 7(a) loans for inventory and working capital, 504 loans for branch facilities and crane truck fleets, and microloans for smaller investments. Storm-driven demand surges often require rapid inventory buildup that SBA financing can support.
Where are roofing and siding wholesalers concentrated in the United States?
Branch networks spread across the country to serve local contractor markets, with concentrations in states with high roofing replacement demand. Texas, Florida, the Gulf Coast, and tornado-prone Midwest states support heavy roofing distribution activity due to storm damage frequency. Major metropolitan areas nationwide host branch locations serving residential and commercial roofing contractors in their surrounding markets.
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. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA size standard publications sba.gov
- [8]SBA lending programs sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504 loans sba.gov
- [11]Census Bureau NAICS definitions census.gov
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