What Contractors Should Know About the Growing Gutter Market
Gutters and downspouts are projected to grow to $6 billion by 2022 according to market research conducted by Freedonia Group. Some of the contributors to this include growth in new construction and re-roofing, expanded gutter product options and increases in available accessories that help with gutter cleaning and maintenance.
To help contractors keep up with the guttering trends so they can adjust their businesses and maximize profits, we spoke with the ABC Supply Pro Council.
Highly Price-Competitive Market
Guttering has always been a niche specialty that faces challenges with increasing overhead and price competition. As a result, it can be difficult for contractors to find that pricing sweet spot to win the bid and turn a profit. And with the recent tariffs on steel and aluminum, material costs are going up, placing even more pricing pressure on gutter contractors.
The good news is that gutters and downspouts are often part of larger roofing projects, so rising costs aren’t expected to negatively impact the demand for projects. Instead, material prices are influencing the type of gutter and downspouts selected for jobs.
Aluminum Outpaces Other Materials
While steel has been historically the most popular type of gutter product, today ABC Supply is seeing an increased demand for aluminum gutter products. Cost is a big driver for the shift from steel to aluminum, but many contractors are also turning to aluminum because it’s a lightweight, easy-to-install material that comes in a range of color options.
The growing demand for aluminum products from ABC Supply aligns with Freedonia’s study that projects aluminum gutters and downspouts to increase 3.4 percent annually to $4 billion by 2022.
Aluminum isn’t completely taking over, though. Steel, copper and vinyl materials will still account for a healthy portion of the overall $6 billion gutter and downspouts market by 2022. While it’s more expensive than aluminum, many people still opt for steel gutter products because of their durability and warranty. For contractors working on high-end projects, copper is often selected because of its expensive appearance.
The scale and scope of work that gutter contractors have is much smaller than their roofing or siding contractor counterparts. That’s why offering additional products, like gutter accessories, for a job can help the contractor add more value and turn a higher profit. Homeowners are often looking for ways to cut down on gutter cleaning and maintenance, so proposing gutter guards or screens can be an easy add-on product.
Suppliers Provide Value-Added Services
In today’s fast-paced, competitive environment, suppliers are looking for more ways to make contractors’ jobs easier. Recycling services, ongoing training or product customization options are a few ways this is being accomplished.
ABC Supply supports contractors and their projects with value-added services that include:
- Sales tools like customized fan decks that feature color chips and the contractor’s business information provide a professional way to share material options with homeowners.
- Orders that are assembled and ready before contractors arrive at a branch for pickup eliminate wait time and increase valuable work time.
The ABC Supply Pro Council consists of experienced associates from across the U.S. Its aim is to provide contractors nationwide with industry advice and insights to help them seize opportunities and overcome challenges they face as they manage successful businesses. Contractors can visit ABC Supply's blog for additional tips and resources from the Pro Council.