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
                                  Source: Vertical IQ and Inforum

                                  Coronavirus Update

                                  Jun 14, 2022 - Kitchens Lead Remodeling Projects in 2021
                                  • Kitchens were the most popular type of remodeling project in 2021, according to a survey of remodeling contractors for the NAHB/Westlake Royal Remodeling Market Index report for the first quarter of 2022 and released in May. Kitchens topped the list of most in-demand project types, with 81% of remodelers saying they were the most popular. Bathrooms were the second most common project with 78%. Other leading project types included whole-house remodels (58%), other room additions (32%), and finished basements (31%).
                                  • Rapidly rising home prices have increased homeowner equity which is expected to boost residential remodeling spending through 2022, according to the Leading Indicator of Remodeling Activity (LIRA) report released in April 2022 by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 15.8% year over year to $406 billion in the second quarter of 2022. On a year-over-year basis, Q3 remodeling spending levels are forecast to rise 19.7%, then drop slightly to 17% growth in Q4. Year-over-year growth will slip further in Q1 2023 to 15.1%. Home improvement spending is projected to taper off beginning in the third quarter of 2022 amid rising financing, materials, and labor costs and concerns about a possible economic slowdown.
                                  • The number of building permits issued for privately-owned housing units decreased 3.2% month over month but rose 3.1% year over year in April 2022. Housing starts fell 0.2% month over month but increased 14.6% year over year in April. Housing completions decreased 5.1% month over month and fell 8.6% year over year in April.
                                  • Total construction spending increased 0.2% in value month over month on an adjusted basis and 12% in value year over year on an unadjusted basis in April 2022, according to the US Census Bureau. Residential construction spending increased 0.9% month over month and 18.8% year over year in April. Nonresidential construction spending declined 0.4% month over month and increased 5.8% year over year in April.
                                  • Homebuilder sentiment, as measured by the National Association of Home Builders/Wells Fargo Housing Market Index, decreased to 69 in May 2022 from 77 in April, marking the fifth consecutive monthly decline. Higher materials costs and rapidly rising interest rates are making housing less affordable, weighing on builder confidence. NAHB Chief Economist Robert Dietz said, “Building material costs are up 19% from a year ago, in less than three months, mortgage rates have surged to a 12-year high, and based on current affordability conditions, less than 50% of new and existing home sales are affordable for a typical family.”
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