Fiberglass World, Inc.

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Construction Manufacturer Business Plan

Market Analysis Summary

The industry of roofing, siding, and installation is a large one. Total annual sales in this industry amount to approximately $11 million and are projected to remain steady, if not increase. One reason for the prosperity of this industry is because there is such a large market. The company is primarily targeting the construction industry, where sales total $124,953 million annually.

Market Size Statistics

Estimated number of U.S. establishments3,245
Number of people employed in this industry35,179
Total annual sales in the industry$11 million
Average employees per establishment11
Average sales per establishment$5.6 million

4.1 Market Segmentation

The roofing and siding industry is only a part of the overall construction industry, which includes contractors that perform almost any function of housing creation and alteration. Therefore, an accurate estimate of nationwide demand for Fiberglass World's products would include the entire construction industry. This is broken up into the following segments:

Market size statistics--Single-family housing construction

General contractors primarily engaged in construction (including new work, additions, alterations, remodeling, and repair) of single-family houses.

Estimated number of U.S. establishments218,2776
Number of people employed in this industry831,158
Total annual sales in this industry$125 million
Average employees per establishment4
Average sales per establishment$.6 million

This segment is comprised of companies that are involved in the smallest housing projects. However, the sheer size of the segment means that this will be the segment providing the majority of sales to Fiberglass World.

Market size statistics--Residential construction, nec

General contractors primarily engaged in construction (including new work additions, alterations, remodeling, and repair) of residential buildings other than single-family houses. This includes hotels, motels, apartments, and multi-family homes.

Estimated number of U.S. establishments25,201
Number of people employed in this industry114,523
Total annual sales in this industry$25 million
Average employees per establishment5
Average sales per establishment$1.1 million

Market size statistics--Nonresidential construction, nec

General contractors primarily engaged in the construction (including new work additions, alterations, remodeling, and repair) of nonresidential buildings other than industrial buildings and warehouses. This includes commercial, institutional, religious, and amusement and recreational buildings.

Estimated number of U.S. establishments44,505
Number of people employed in this industry540,550
Total annual sales in this industry$205 million
Average employees per establishment12
Average sales per establishment$4.9 million

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Single-family housing construction 4% 218,276 227,007 236,087 245,530 255,351 4.00%
Other residential construction 3% 25,201 25,957 26,736 27,538 28,364 3.00%
Non residential construction 2% 44,505 45,395 46,303 47,229 48,174 2.00%
Total 3.61% 287,982 298,359 309,126 320,297 331,889 3.61%

4.2 Target Market Segment Strategy

The company is primarily targeting the construction industry, which are establishments primarily engaged in the wholesale distribution of roofing, siding (except wood), and insulation materials. Residential and commercial construction projects are at an all-time high and will continue to increase for years to come. It is important to realize that we have a very unique and much-needed product. The standard materials available are asphalt shingles, organic shingles, fibered cement shingles, metal roofing, clay tiles, concrete tiles, slate tiles, cedar shingles, recycled tile roofing, and solar shingles. 

Our product is entirely new, and we are introducing it into this industry: fiberglass insulative architectural roof tiles, (Fiberglass Plate). The average costs of the above products vary. While Fiberglass Plate is more expensive, it also offers an insulation factor that all other products do not incorporate. This effectively reduces costs for separate insulation products.

4.3 Industry Analysis

Market Analysis by Specialty (8-digit SIC Code)

SIC Code

SIC Description No Bus. % Total Total Emps. Total Sales Avg. Emps. Avg. Sales
5033-0000 Roofing, siding, and insulation 1,01231.211,012$3,058115.8
5033-0100Roofing and siding materials 73122.58,326$3,834128.2
5033-0101Asphalt felts and coating 511.6534$36.9101.1
5033-0102Felts, tarred 105$.95.9
5033-0103Roofing, asphalt and sheet metal 40212.44,648$1,655127.5
5033-0104Shingles, except wood 100.3132$29133.2
5033-0105Siding, except wood 32910.12,775$64783.3
5033-0200Insulation materials 37911.72,789$81483.0
5033-0201Fiberglass building materials 1043.22,656$118.5272.2
5033-0202Insulation, thermal 2206.82,247$438103.7
5033-0203Mineral wool insulation materials 60.255$39.7

Note: Not all establishments have a specialty. Sales figures are in millions.

4.3.1 Competition and Buying Patterns

Fiberglass Plate Products will be marketed initially in the Southern region of the United States. This selling area will utilize our entire production capability. The construction industry is on the move and we intend to have our percentage of this long lasting industry. Our past marketing shows a place for Fiberglass Plate and also shows a tremendous demand for these products. Both products are in the completed development stage and are ready for manufacturing.