Tile and Terrazzo Contractors

The 10,700 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.

Sep 8, 2026 - Tile Installers Face Mixed Nonresidential Building Market

• Commercial construction is expected to produce uneven but generally improving opportunities for tile contractors through 2027, according to TileLetter magazine. BLD Marketing's midyear forecast projects commercial construction growth of 4.8% in 2026 and 5.8% in 2027, while overall nonresidential construction is expected to decline 0.3% this year before growing 3.0% next year. Data centers lead projected growth, followed by strong gains in offices, amusement and recreation, hotels, and health care. Manufacturing and warehouse construction remain weaker. For tile contractors, growth in premium offices, hotels, health care facilities, and recreation projects could support demand for durable, high-end finishes, waterproofing, large-format materials, and technically complex installations. Contractors may benefit from targeting stronger sectors, expanding technical expertise, and adapting to tighter schedules and changing specifications.
• The Wall Street Journal reports that investors are increasingly buying aging hotels that need renovations as property prices fall and new hotel construction slows. According to MSCI data cited by the Journal, US hotel sales rose 28% in the first half of 2026 compared with a year earlier. Lower borrowing costs, improving hotel revenue, and discounted property prices are helping attract buyers, while major hotel brands are becoming more aggressive about enforcing renovation requirements. Many owners have delayed upgrades because of debt burdens and limited cash. Increased hotel renovations could support demand for tile and terrazzo contractors as owners update bathrooms, lobbies, restaurants, pools, common areas, and other high-traffic spaces to meet brand standards and improve guest appeal. New hotel room supply is growing just 0.5% this year, well below the historical average of 1.6%, making acquisitions and renovations more attractive than new development.
• The total value of nonresidential construction put in place rose 0.1% in July 2026 compared to the prior month, according to the US Census Bureau. Spending for most types of nonresidential structures was uneven in July. Office projects, which include data centers, saw the strongest growth with a 2.9% rise in July over June, followed by communication (+0.4%) and public safety (+0.1%). Educational and healthcare project spending declined by 0.4% and 0.5%, respectively, while amusement and recreation spending dropped by 0.3%. Commercial and lodging spending were flat, while manufacturing projects declined by 1%. The Associated General Contractors of America (AGC) said just three segments are propping up the construction sector: data centers, power projects, and highways. However, the AGC suggests these three areas are under pressure from labor shortages, political headwinds, and a lapse in highway funding.
• Home renovation demand remains stronger than expected, but labor shortages are emerging as a significant constraint for the industry. A William Blair survey of 109 home-sector professionals found that 62% reported accelerating demand year to date, while 58% described stronger-than-normal project pipelines. General construction workers, skilled tradespeople, and flooring installers were among the hardest positions to fill, contributing to higher labor costs, longer project timelines, and greater cost uncertainty. Labor and installation already account for 40% to 60% of renovation budgets, making workforce availability increasingly important to project affordability. Flooring installations face particularly long lead times. Despite these challenges, 58% of respondents plan to increase renovation spending in the coming year, up from 37% in March 2025, while larger projects and higher-income households continue to support demand.

Industry size & Structure

The average tile and terrazzo contractor operates out of a single location, employs about 5 workers, and generates about $1.1 million annually.

• The tile and terrazzo contracting industry consists of about 10,700 establishments that employ about 55,000 workers and generate about $12 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.