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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 10,000 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 $922,000 annually.

    • The tile and terrazzo contracting industry consists of about 10,000 establishments that employ about 55,900 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 3.2 billion per year, while square footage of terrazzo totals about 341 million.
                                  Industry Forecast
                                  Tile and Terrazzo Contractors Industry Growth

                                  Coronavirus Update

                                  Nov 3, 2021 - New Coronavirus Variant Causes Concern
                                  • Health officials and scientists are tracking a mutation of the Delta coronavirus variant amid concerns that it could be more transmissible than the original strain. The subvariant of the Delta variant, labelled AY.4.2, was detected in at least 42 countries, including the US, by the end of October. The vast majority of cases have been reported in the United Kingdom. Experts warned that the spread of the variant, which some have labelled as “Delta Plus,” could be the result of a number of factors, including public health measures set out by governments or the extent of adherence to those measures.
                                  • About 31% of the respondents to Home Advisor's 2021 State of Home Spending survey said that they renovated their bathrooms in 2020.
                                  • Small-business owners who received taxpayer-subsidized Paycheck Protection Program (PPP) loans of $150,000 or less during the coronavirus pandemic can seek forgiveness directly with the government through an online portal that was opened on August 4, allowing them to sidestep the private financial institutions that ran most aspects of the program for 14 months.
                                  • Some businesses that took PPP loans in 2020 but don't apply for forgiveness soon will need to start making payments on the loan plus interest. The PPP loans will automatically convert to a standard loan at 1% interest if a small business does not apply to the SBA for forgiveness within 10 months of the end of the covered period under which they had to spend the money. For some businesses that received a loan when the PPP launched in April 2020, there was an eight-week covered period, which would put the forgiveness application deadline in the middle of July. For most loans operating under the more popular 24-week covered period, that meant a deadline in September.
                                  • Small business owners seeking funding from the SBA can apply to the Economic Injury Disaster Loan program, the Targeted EIDL Advance grant program, the Supplemental EIDL Advance grant program, and the Debt Relief program.
                                  • The National Association of Homebuilders’ Remodeling Market Index (RMI) posted a reading of 87 in Q2, up from 86 in Q1 and 79 in Q4 2020. An index number above 50 indicates that a higher share view conditions as good than poor. All components and subcomponents of the RMI were 81 or above. The Current Conditions Index averaged 91, up from 89 in Q1 and 84 in Q4 2020, with large remodeling projects ($50,000 or more) yielding a reading of 90, moderately-sized remodeling projects (at least $20,000 but less than $50,000) at 91 and small remodeling projects (under $20,000) with a reading of 92. These readings were all up substantially year-over-year, indicating strength for remodeling across all types of projects. The Future Indicator Index averaged 83, down from 84 in Q1 but up from 72 in Q4 2020, with the rate at which leads and inquiries are coming in at 81 and the backlog of remodeling jobs at 86.
                                  • Attorneys at Atlanta-based law firm Fisher Phillips told contractors that it is within their legal rights to compel workers to get vaccinated against COVID-19. Requiring construction workers to get a coronavirus vaccination is comparable to existing rules for healthcare workers that make flu shots mandatory in order to protect all patients and staff and keep the workplace safe, the attorneys said. The attorneys also recommended that contractors set up programs to administer vaccines on jobsites, during work hours, and free of charge, in order to get the highest participation possible while ensuring projects continue to move forward.
                                  • Employment in the specialty trade contracting industry increased 2.4% year over year in September but was down 1.2% compared to September 2019.
                                  • The number of building permits issued for privately-owned housing units decreased 7.7% month over month but was unchanged year over year in September. Housing starts decreased 1.6% month over month but increased 7.4% year over year in September. Housing completions decreased 4.6% month over month and 13% year over year in September.
                                  • Total construction spending decreased 0.5% in value month over month on an adjusted basis but increased 7.9% in value year over year on an unadjusted basis in September, according to the US Census Bureau. Residential construction spending decreased 0.4% month over month but increased 19.2% year over year in September. Nonresidential construction spending decreased 0.6% month over month and 1.2% year over year in September.
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