Tile and Terrazzo Contractors
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 10,500 tile and terrazzo contractors in the US set and install ceramic tile, stone, and mosaics and/or mix marble particles and cement to produce terrazzo at the job site. Because the terrazzo market is a small part of the category, terrazzo contractors often install stone or tile, while few tile contractors also install terrazzo.
Dependence On General Contractors
Tile and terrazzo contractors generally work as part of a team of subcontractors managed by general contractors, which act as a gateway to construction jobs.
Competition From Alternative Materials
In the construction market, tile and terrazzo compete with other types of material, particularly in the flooring sector.
Industry size & Structure
The average tile and terrazzo contractor operates out of a single location, employs about 5-6 workers, and generates about $857,000 annually.
- The tile and terrazzo contracting industry consists of about 10,500 establishments that employ about 55,000 workers and generate about $9 billion annually.
- Most firms are small, independent operators that work within a limited geographical market. Even the largest companies are regional.
- Tile outsells terrazzo by a wide margin; square footage of ceramic floor and wall tile totals about 3.5 billion per year, while square footage of terrazzo totals about 341 million.
Industry Forecast
Tile and Terrazzo Contractors Industry Growth
Recent Developments
Jan 9, 2025 - Weak Housing Market Reduces Remodeling Demand
- Retailers of home improvement goods are hurting as high interest rates and home prices have reduced existing home sales, according to The Wall Street Journal. The Home Depot and Lowe’s reported that their 2024 sales suffered as homeowners pulled back on project spending. Industry observers note that the downturn in the US housing market has hit flooring retailers hard, as flooring is one of the most popular home improvement projects before selling or after buying a home.
- The total value of construction put in place was unchanged in November compared to October, according to the US Census Bureau. Spending on nonresidential projects decreased by 0.1%, and residential spending rose by 0.1%. Within the nonresidential building segment, pockets of spending growth included religious and healthcare, which saw increases of 1% and 0.1%, respectively. Commercial construction was flat in November and all other nonresidential building segments saw spending decline in November, led by public safety (down 1.3%) and followed by amusement and recreation (-0.7), lodging (-0.4%), educational (-0.3%), and office (-0.2%).
- Among specific construction trades, flooring installers employ some of the highest percentages of immigrant workers, according to National Association of Home Builders analysis of US Census Bureau data. About 45% of flooring installers in the US are immigrants. Nearly 45% of flooring installation contractors say they’ve experienced labor shortages. Nationwide, foreign-born workers account for about 25% of construction trade employment, but reliance on immigrant labor is much higher in some states. Immigrants account for more than 40% of the total construction trade employment in California and New Jersey and about 38% in Florida and Texas. Some contractors are concerned that the Trump administration's promises of tariffs and a tougher stance on immigration could increase their costs and make their labor difficulties worse, according to The Wall Street Journal. However, some builders are optimistic that Trump’s deregulation plans could reduce construction costs.
- According to some industry insiders’ estimates, the 2024 housing market may have been the slowest in nearly 30 years as high mortgage rates and home prices combined with extremely low housing inventories have kept homeowners locked in place and would-be homebuyers priced out of the market, according to The New York Times. The National Association of Realtors estimates that four million homes were sold in 2024, marking the second straight year of historically weak activity, and the slowest home sales since 1995. Market observers note that the housing crisis is a product of weak supply. Builders have struggled amid lingering pandemic-era problems, including high borrowing, labor, and materials costs. Freddie Mac estimates the housing shortage equals about 3.7 million homes. The outlook for 2025 remains uncertain as home prices and mortgage rates are expected to remain stubbornly high.
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