Through the roof: Housing rebound fuels revenue, but fears of bubble may constrain growth

Industry products are used primarily in residential housing and for road building, and as a result the health of the industry can be closely tied to downstream construction markets and government spending on infrastructure. These markets experienced volatile demand over the five years to 2018, with falling commodity prices slashing activity in energy markets and related sectors, prompting a decline in nonresidential construction. However, a growing housing market, alongside increased government investment in infrastructure has counteracted this and helped the industry grow. Over the next five years, the industry is projected to experience stronger growth...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
1.4%
Forecast Growth 18-23
Profit
Employment
4,648
Businesses
135

Industry Threats & Opportunities

  • Government infrastructure funding was critical for industry growth and partly offset volatile demand from the construction sectors
  • Declining oil prices are anticipated to spike industry profit margins
  • Targeted infrastructure investments will continue to bolster demand for industry products
  • Industry Report - Industry Key Buyers Chapter

    The Asphalt Manufacturing industry in Canada has a low level of market share concentration, with the three largest operators estimated to account for 21.5% of industry revenue in 2018. The industry is primarily composed of various small to medium sized businesses, with an average of 13 employees per establishment and over 90.0% of industry establishments having fewer than 50 workers. The industry has high transportation costs that make it expensive and difficult for companies to ship products across the country, and as a result the majority of industry operators focus on their local regional markets. Indeed, the industry's largest player, Sintra Inc., is estimated to control nearly 19.0% of the industry and operates almost exclusively in Quebec...purchase to read more.

    Additional Insights for the Asphalt Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Asphalt Manufacturing Industry are

  • Ability to accommodate environmental requirements
  • Proximity to key markets
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Value of nonresidential construction and Government expenditure and investment in the Asphalt Manufacturing industry impact industry performance..

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    What's in this report

    What is the Asphalt Manufacturing Industry?

    This industry manufactures paving and roofing materials, including asphalt and tar-paving mixtures, blocks, roofing cements, coatings and shingles produced from purchased asphaltic materials and coal tar. This industry excludes asphalt paving products directly produced from petroleum refineries.

    Industry Products
  • Asphalt paving mixtures
  • Asphalt shingles
  • Asphalt siding and roofing materials
  • Industry Activities
  • Manufacturing asphalt paving blocks
  • Manufacturing asphalt paving mixtures
  • Manufacturing asphalt roofing coatings
  • Manufacturing asphalt shingles
  • Manufacturing asphalt saturated mats and felts
  • Manufacturing asphalt roofing cements
  • Manufacturing undercoating for motor vehicles
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of nonresidential construction
  • Government expenditure and investment
  • Value of residential construction
  • Canadian-dollar effective exchange rate index
  • World price of crude oil

  • Current Performance
  • Fluctuating construction markets
  • Government funding provides support
  • Profitability rebounds
  • United States drives international trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Government infrastructure spending
  • Domestic construction markets
  • North American trade growth
  • Profitability
  • Table: Asphalt Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Asphalt Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Industrial Building Construction in Canada
  • Bridge & Elevated Highway Construction in Canada
  • Roofing Contractors in Canada
  • Road & Highway Construction in Canada

  • Key Selling Industries
  • Oil Drilling & Gas Extraction in Canada
  • Petroleum Refining in Canada
  • Sand & Gravel Mining in Canada
  • Stone Mining in Canada

  • Products & Services
  • Asphalt paving mixtures
  • Asphalt shingles
  • Asphalt siding and roofing materials
  • Chart: Asphalt Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Road and highway construction
  • Housing and building construction
  • Exports
  • Chart: Major Market Segmentation for the Asphalt Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Asphalt Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Asphalt Manufacturing Industry

  • Industry Globalization
    Sintra Inc.,
  • Table: Sintra Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Asphalt Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Asphalt Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Value of residential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Aggregates
  • Crushed rocks, gravel, sand and stone. Aggregates are combined with bitumen to form asphalt paving products.
  • Bitumen
  • Also known as asphalt or tar. Bitumen is a crude oil distillate that is used to bind aggregates together to produce asphalt paving products.
  • Emulsion
  • A mixture of chemical additives, bitumen and aggregates that are typically mixed at lower temperatures.
  • Shingles
  • Asphalt roof tiles that are typically manufactured by coating paper with bitumen.
  • Viscosity
  • The "thickness" of fluids. Asphalt products manufacturing requires high heat because bitumen has high viscosity.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Asphalt Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Asphalt Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Asphalt Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Asphalt Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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