Construction Manufacturer Business Plan

Fiberglass World, Inc.

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. establishments	3,245
Number of people employed in this industry	35,179
Total annual sales in the industry	$11 million
Average employees per establishment	11
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. establishments	218,2776
Number of people employed in this industry	831,158
Total annual sales in this industry	$125 million
Average employees per establishment	4
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. establishments	25,201
Number of people employed in this industry	114,523
Total annual sales in this industry	$25 million
Average employees per establishment	5
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. establishments	44,505
Number of people employed in this industry	540,550
Total annual sales in this industry	$205 million
Average employees per establishment	12
Average sales per establishment	$4.9 million

Construction manufacturer business plan, market analysis summary chart image

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	1,012	31.2	11,012	$3,058	11	5.8
5033-0100	Roofing and siding materials	731	22.5	8,326	$3,834	12	8.2
5033-0101	Asphalt felts and coating	51	1.6	534	$36.9	10	1.1
5033-0102	Felts, tarred	1	0	5	$.9	5	.9
5033-0103	Roofing, asphalt and sheet metal	402	12.4	4,648	$1,655	12	7.5
5033-0104	Shingles, except wood	10	0.3	132	$29	13	3.2
5033-0105	Siding, except wood	329	10.1	2,775	$647	8	3.3
5033-0200	Insulation materials	379	11.7	2,789	$814	8	3.0
5033-0201	Fiberglass building materials	104	3.2	2,656	$118.5	27	2.2
5033-0202	Insulation, thermal	220	6.8	2,247	$438	10	3.7
5033-0203	Mineral wool insulation materials	6	0.2	55	$3	9	.7

	Total/Average	3,245	100	35,179	$10,637	11	5.6

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.