Flooring Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Flooring Services Category Overview

The flooring services category is expected to grow at a CAGR of 5.2% from 2023 to 2030. The APAC region accounts for the largest category share, while the North American and European region is anticipated to be the fastest-growing region in the forecast period. Increasing demand for flooring services amid the rise in demand for superior, durable, aesthetic, and covering solutions are surging the requirements for flooring services in the category. Factors such as rising construction activities, rapid urbanization, rise in construction spending, and expansion of workspaces and offices are driving the growth of the category. Increasing demand for floor waterproofing with the use of Vinyl flooring combined with WPC (Wood-plastic composites) is further contributing to the category growth.

Advancement in R&D and technology has brought category innovation to develop environmentally sustainable products, easy to install peel-and-stick tiles, and innovative construction solutions. Peel-and-stick vinyl tiles are an excellent solution for quick and durable floor requirements. It replaces the traditional technique to apply tiles upon the flooring and eliminates the additional need for mortar and labors. Companies are demonstrating eco-friendly and health-strategic products by making use of waste materials to create materials for production. In July 2023, Georgia-based company ShawContract developed PVC-free, EcoWorx carpet tile which weighs 40% lesser than traditional carpet tile resulting in increased efficiency for installation and allowing for reduced carbon emission during transportation. It is also certified with Cradle to Cradle at the silver level which means it is made responsibly and is safe to use.  

The category is fragmented, with the major competitors competing for market dominance. Major players are continuously involved in investing their resources in developing novel products for the category. In May 2023, Mannington Commercial, a manufacturer of flooring products, featured 2 styles - Foam and Frost with textual patterns made up of type 6 nylon that can withstand strong wet cleanings backed by the patented Infinity 2 Modular backing. To fulfil customer demand and reach global markets, companies are focusing on increasing their production capacity alongside maintaining environmental sustainability. Mergers and acquisitions help category participants to provide overall flooring services from installation to maintenance and services. For instance, Illinois-based leading flooring installation and interior services company, Diverzify, collaborated with Spectra and ProSpectra, divisions of Shaw Inc. to form the world’s largest independent commercial installation business at major locations in the U.S.

Key cost components incurred by flooring service providers include raw material, labor, tools and equipment, rent and utilities, and licensing and compliance. Major factors that affect the cost of flooring services depend upon the raw material, labor, underlayment, removal-disposal of existing flooring, and additional materials based upon the custom requirements. Costing may fluctuate depending on the flooring type chosen such as ceramic, hardwood, porcelain, vinyl, and others. The average flooring cost of materials includes hardwood (USD 7 to 23), tile (USD 6 to 20), carpet (USD 3.5 to 11), vinyl (USD 3 to 7), laminate (USD 3 to 10), linoleum (USD 3 to 7), bamboo (USD 5 to 15), cork (USD 5 to 12), concrete (USD 2 to 8) per square foot. Labor costs vary based on the flooring installation cost and upon the level of labor chosen, a contractor with a small business may cost less than a contractor from a big-box store. Labor cost ranges between tile (USD 6 to 8), hardwood (USD 3 to 9), and carpet (USD 1 to 3) per square foot. The overall cost depends upon various factors such as geographical locations, nature of work, and material used.

Sourcing of the category involves procurement of materials and import of the products from various countries. India, Iran, and China are the ideal destinations for sourcing ceramic and porcelain tiles. China holds one of the biggest production bases of tiles in the world, holding a significant number of manufacturers producing modern design materials at a fraction of the cost. Chinese tiles are now considered to be at par in competition with Western countries’ production. Guangdong Province in China is the center for tiles manufacturers and construction materials. For instance, Foshan City is home to multiple tile marketplaces with tens of thousands of Chinese merchants and showrooms for manufacturers. China and India have the cheapest source of labor, making them provide flooring services at a reduced cost.

Flooring Services Procurement Intelligence Report Scope