Overview of the Flooring Market
The global flooring market was worth an estimated $388 billion as of 2020. The market is expected to grow at a compound annual growth rate of 6.1% from 2021 to 2028, reaching $621.54 billion. Jonathan Trivers puts the total retail flooring market size at $66.2 billion in 2017 including labor, with retail sales growing 5.1% year-over-year. Hardwood flooring accounts for approximately 45% of the overall market.
Flooring Professionals and Companies
Installer Salary and Market Size
The average salary for a flooring installer is $47.77 per hour in California, with salary ranges from $31,426 at the 10th percentile to $57,701 at the 75th percentile. The market size of flooring installers was $28.5 billion in 2023 and is expected to rise to $37.7 billion by 2028. There are 122,307 flooring businesses in the US as of 2022.
Profitability and Business Strategies
The average expectation for profit margins in the flooring industry is 38% to 45%, with a flooring installer having a ~20% operating profit margin after costs. The average salary for a flooring company owner is $212,256. The major expenses of a flooring company include materials, labor, and project costs, with medium companies making $230,000 a year on average. Challenges for flooring companies include supply chain delays and a shortage of skilled workers.
Marketing and Growth Strategies
Floor planning is a type of inventory financing for large ticket retail items, with a zero-floor limit policy where all transactions must be authorized. Furthermore, quality products, referrals, and advertising on websites and social media are part of effective marketing strategies. Floor planning helps retailers to use short-term loans to purchase inventory, which is repaid as inventory is sold.
Types of Flooring and Market Segments
Based on type, the flooring industry is classified into non-resilient, resilient, and carpets & rugs. The non-resilient segment includes ceramic, wood, laminate, and others. The resilient segment is subdivided into vinyl and others, while the carpets & rugs segment is divided into tufted, woven, and others.
Consumer Considerations
U.S. News 360 Reviews consulted with designers and cleaners to select the best flooring companies based on price, durability, locations, warranty, and customer service. The array of flooring options ensures customers have choices to suit their needs, increasing sales. Good service and a well-chosen name that conveys reliability can further enhance profits.
Emerging Opportunities
The growing construction industry, renovation of homes, and other commercial construction activities are factors expected to increase demand for the flooring tool market. Changing trends in home furnishing, lifestyle, and disposable income also contribute to this demand.
Setting Up a Flooring Business
Footprints Floors has a franchise model with low startup costs and potentially high profit margins. To be eligible, you need $50,000 in cash and $113,030 in capital, with franchises starting at $15,000. The main market is residential renovations, within a $28.1 billion market size.