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
Jul 10, 2024 - New Single-Family Home Sales Drop
- New single-family home sales fell 11.3% month-over-month and 16.5% year-over-year in May 2024, according to the US Department of Commerce. June new home sales saw the sharpest monthly decline since September 2022 as elevated interest rates and high home prices depressed demand. The median US home price in June was $417,400, up 3.2% from May and 4.9% higher than June 2023.
- Some young workers in the skilled trades are finding a wide following for their social media posts that chronicle their day-to-day activities on the job site, according to The Wall Street Journal. Interest in the skilled trades among Gen Z is growing as many younger workers look for employment that doesn’t involve taking on large amounts of debt and offers competitive wages. In 2023, enrollment in vocation-focused community colleges increased by 16%, marking the highest level since the National Student Clearinghouse began tracking the metric. For many younger job seekers, skilled tradespeople posting about their work on social media sites is their first exposure to the trades, and construction insiders report that such posts can help in recruitment.
- Demand for building design services slipped in May from the prior month, as architectural billings remain soft, according to a June report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 42.4 in May from April’s reading of 48.3. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries fell to 52.1 in May compared to 54.8 in April, and the index for the value of new design contracts decreased from 49.2 to 45.6. The AIA’s Chief Economist, Kermit Baker said, "The decline in the May ABI score continues a year and a half of weakness in design billings at US architecture firms. However, firms only reported modest declines over the first half of this period. Over the past nine months, volatility has increased, and scores have softened more significantly, with the May score the weakest reported since the end of the pandemic recession."
- Low- to medium-density multifamily building construction has grown to account for a larger share of the overall multifamily market in recent years, according to National Association of Home Builders Analysis of US Census Bureau data. In 2024, there were 450,000 multifamily housing unit completions, marking the highest level in 37 years. Of those, 216,000 were buildings with fewer than 50 units, which was the largest share for low- to medium-density buildings since 2006.
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