Many people postpone their plans for improving their homes until the following year because they have to shop for back to school items such as football and soccer cleats for their children. Consequently, they end up spending more money when they postpone their plans to install new roofs because roofing materials and especially asphalt shingles, which is the most popular, become more costly as time goes by.
Just a few months ago, suppliers gave notices to many people about a possible 5% price increase for asphalt underlayment that have ice/water and felt shield and asphalt shingles, which are the most commonly used commodities. In the last 5 years, such price increases have become common even though some people do not consider them important. In effect, the demand for new roofs has decreased significantly.
The price increases for roofing materials has led to a slight increase in the cost of labor and a significant increase in the cost of commercial and residential roof repair and replacing roofs over the past few years. Asphalt based roofing materials become more costly because of various factors. The increase in oil prices that people experienced a few years ago is largely responsible for the increased in the price of the aforementioned materials.
In spite of the drastic changes in oil prices, which have led to the leveling off and significant drops , the prices of asphalt roofing materials continue to increase steadily because they are not easily available . Hence, many people consider their availability one of the greatest contributors to the steady increase in roofing prices and subsequent decline in roofing demands over the past few years.
The roofing industry uses less than 10% of all asphalt while people use the remaining 90% for pavement. Many people think that the prices of asphalt shingles and other bituminous products that are ideal for constructing residential houses would change as the home building, home improvement industries fail, and the economy faces numerous hardships. However, the consumption of asphalt has increased significantly thanks to the transportation projects.
Thanks to “The American Recovery and Reinvestment Act, , which shows that the dollars that the government collects in the form of taxes is working, the Department of Transportation has released billions of dollars for people to reinvest across the nation. Many people think that the local government is using a big percentage of this money for the paving of roadways and for resurfacing purposes.
As compared to the steady demand for asphalt, which is commonly used for pavement, the impact that the current decline in home improvement and home building has on the prices of asphalt is not that great especially because the federal government has increased transportation projects significantly. However, the creation of higher value products by making oil-refining facilities more efficient has also affected the asphalt prices.
The production of fuels by using oil is largely responsible for producing asphalt. The federal government made the efficient increase in the production of fuels by using oil mandatory by introducing measures a few years ago. In effect, it led to an increase in the demand for asphalt even though some people considered these mechanisms cokers for the manufacture of “Ultra Low Sulfur Fuels, which are very effective nowadays.