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
Mar 7, 2025 - Remodeling Spending to Improve in 2025
- Home remodeling spending is expected to see slight gains in 2025 after two years of weakening expenditures, according to the Leading Indicator of Remodeling Activity (LIRA) report released in January by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase by 0.4% to $513 billion in the first quarter of 2025 compared to Q1 2024. In the second quarter of 2025, remodeling spending will rise quarter-over-quarter to $505 billion, up 0.7% from Q2 2024. Spending will then increase to $506 billion in Q3 2025, up 1.2% from Q3 2024. In the fourth quarter of 2025, year-over-year spending is forecast to rise 1.2% to $509 billion. Joint Center expects improvements to be supported by rising home values, a steady labor market, and gradually improving existing home sales. Better retail sales of building materials and solid remodeling permitting activity should also support home improvement spending.
- Raids by Immigration and Customs Enforcement (ICE) are prompting some foreign-born workers to stay home from their workplaces, disrupting key industries that rely on migrant workforces, including construction, according to The Wall Street Journal. The Trump administration has said that while it is focusing on undocumented people with criminal backgrounds, anyone in the country illegally faces increased risk. According to an analysis of US Census Bureau data by the American Immigration Council, undocumented immigrants make up about 14% of the US construction sector’s workforce. The Associated General Contractors of America said it had received anecdotal reports of rising absenteeism from member firms in several locations, including Florida, Georgia, Oklahoma, and Texas. Labor disruptions reduce construction firms’ ability to deliver projects on time.
- High costs for financing reduced the development of single-family built-for-rent (SFBFR) construction activity in the fourth quarter of 2024 compared to a year earlier, according to National Association of Home Builders analysis of US Census Bureau data. In Q4 2024, there were about 15,000 SFBFR housing starts, down 38% from Q4 2023. However, during the four most recent quarters, 83,000 SFBFR homes began construction, which is up 8% compared to how many were built in the previous four-quarter period. While the historical four-quarter moving average market share for SFBFR is about 2.7% (1992-2012), SFBFR’s current share of the overall single-family market is about 8%. Single-family built-for-rent homes provide an alternative for consumers who want more space but are challenged by a lack of affordable housing inventory and downpayment requirements in the for-sale market.
- Single-family housing starts declined by 8.4% month-over-month and fell 1.8% year-over-year in January. The number of building permits issued for single-family, privately-owned housing units was flat month-over-month and dropped 3.4% compared to January 2024. Single-family housing completions were up 7.6% month-over-month and gained 9.8% year-over-year in January. Frigid January temperatures in much of the country slowed housing starts, according to reporting by Reuters. While a lack of existing homes on the market is helping to drive demand for new homes, some industry insiders are worried the Trump administration’s tariff-based trade agenda could increase builder costs at a time when high mortgage rates and home prices have reduced affordability.
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