A just-released Transparency Market Research report using 2015 figures estimates that the North American sealcoating market will grow at a compound annual growth rate of 4.7% from 2016 – 2024, with overall value increasing from $405.7 million in 2016 to $609.3 million in 2024.
Pretty good news for anyone in or thinking of getting into the sealcoating business.
The report notes that what it terms “moderate growth” will be driven by demand for sealer on driveways and parking lots, which it reports accounted for more than 80% of the use of sealer in 2015. Refined tar sealer will continue to be an important product in the market, but the report notes that “bitumen and asphalt-based sealers” were the leading revenue generators in 2015 as a result of concerns about refined tar, the improved performance of asphalt-based sealers and competitive pricing strategies. It projects use of acrylic sealers will expand at a “significant pace” through 2024.
And contractors have a role to play in this. Though the report doesn’t address it, continued education of the consumer by the sealcoating pro will go a long way toward making sure these projections come true – or get even better. Here are some tips to help you out:
1. Accurately portray your products. Don’t oversell, don’t misrepresent (yours or others).
2. Sell and apply material per manufacturers’ specifications. Properly applied sealer protects pavement longer and in so doing improves the image of the contractor and the industry.
3. Warranty your work. In this age of “everything is returnable” you establish a comfort level with your customer when you stand behind the product and stand up for the industry.
4. Act like a pro. Use a standard contract for all jobs, show up on time, leave behind a clean jobsite, have your crew look like a team, maintain (and clean) your equipment.
5. Invest in training – the results will show themselves to your customers.
6. Market your brand. Because you’re not trying to get away with anything you should loudly make sure people know you exist and what you do.
These are just a few things you can do to enhance the growth of the industry – and they’ll have the added benefit of enhancing your business and protecting you from the fly-by-night pariahs that plague the industry year after year.