Flooring Contractors
Industry: Flooring Contractors
Naics: 238330
Private Company Multiples
Industry Overview
The flooring installation industry is fundamentally tied to construction activity, both residential and commercial. A robust housing market, characterized by rising home values and increased renovation spending, has historically driven demand for flooring services. The pandemic era was a prime example of this dynamic, as historically low interest rates spurred a housing boom, benefiting flooring installers. However, this rosy picture contrasts sharply with the performance of the commercial sector.
While residential construction flourished, the commercial building market struggled due to widespread business closures and economic uncertainty. This imbalance created a bifurcated industry landscape. Despite these challenges, the flooring installation industry managed to eke out a modest 0.2% CAGR over the past five years, reaching an estimated $28.5 billion in 2023. However, the industry is bracing for a 2.9% decline in revenue that year as the Federal Reserve's interest rate hikes begin to impact the residential market.
Looking ahead, the industry's fortunes are poised to shift. As the economy fully reopens and commercial construction gains momentum, demand for flooring services in offices, factories, and other commercial spaces is expected to rise. Conversely, the residential market, buoyed by pandemic-era tailwinds, is anticipated to cool as interest rates climb. Despite these countervailing forces, the flooring installation industry is forecast to register a modest 1.5% CAGR, reaching $30.6 billion by 2028.
While the industry's long-term prospects are positive, short-term challenges related to labor costs and economic volatility will continue to shape its trajectory.
Key Financial Metrics
Income Statement Benchmark
