Industry employment is projected to increase an average of 1.8% annually to 131,005 in 2017
(PRWEB) July 08, 2012
The Tile Installers industry is putting the pieces back together from a rough showing during the recession. According to IBISWorld industry analyst Olivia Tang “the subprime mortgage crisis dented demand for residential and non-residential construction, which caused fewer houses and non-residential buildings to be built. As a result, demand dropped for tile installers, who are responsible for installing and maintaining tile, marble, mosaics and terrazzo for indoor use. In the five years to 2012, revenue is estimated to decline at a 6.3% annualized rate to $10.1 billion. However, revenue is expected to increase 6.7% in 2012 as construction markets return to health, signaling recovery for the industry.”
Although the industry services both residential and commercial buildings, the majority of revenue comes from the residential sector. As the subprime crisis cut into home values and as the recession reduced consumers' ability to purchase homes, demand for housing and residential construction crashed: The number of housing starts is estimated to decline at an average annual rate of 11.8% over the past five years. Additionally, limited spending money causes those who are already homeowners to spend less on home improvement projects that require tile installation.
As the amount of tile installation work available plummeted, industry firms were forced to lower prices to compete. According to Tang “this trend slashed profit margins and pushed some firms out of the industry. As a result, the number of firms is estimated to fall at an average annual 2.3%. The industry is dominated by small companies. The top four largest firms account for less than 5.0% of total industry revenue. Industry operators include small firms and sole proprietorships that specialize in specific regions or industry product segments.” About 72.6% of firms with payroll employ fewer than four people and 86.2% of firms employ fewer than 10 workers. Non-employer firms generate one-fifth of industry revenue. Conversely, less than 1.0% of industry establishments employ over 100 workers.
The industry is expected to recover through 2017 as the housing market recovers, which will in turn boost the value of construction and the number of housing starts. Therefore, the rebound in residential, commercial and municipal construction projects will benefit the Tile Installers industry. In the five years to 2017, revenue is expected to bounce back. Positively, employment is projected to increase an average of 1.8% annually to 131,005 in 2017. The estimated number of employees for 2017 is close to the peak of 2007, signaling a full recovery in the next five years
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IBISWorld industry Report Key Topics
The Tile Installers industry sets and installs ceramic tile, interior stone and mosaics. Industry operators also install marble particles mixed with cement to make terrazzo at a job site. Installers’ activities include new installations, additions, alterations, maintenance and repairs.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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