Lay it down: Higher material costs and rising competition will hinder profit growth

Sales improved for operators in the Floor Covering Stores industry over the five years to 2017. Professional contractors and homeowners typically purchase industry goods while undergoing new residential construction and home renovation projects. Therefore, the steady rise in housing starts and remodeling activity over the past five years helped increase demand for industry retailers. During the five-year period, demand conditions have improved in line with the strengthening economy. As a result of the continued strengthening economy, IBISWorld forecasts steady growth for the industry over the five years to 2022. While competition persists, growth in the housing market will boost overall demand for floor coverings, thus benefiting the industry...read more.

Industry Statistics & Market Size
Revenue
$22bn
Annual Growth 12-17
4.8%
Forecast Growth 17-22
Profit
Employment
77,690
Businesses
20,784
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Competition from home improvement stores has limited industry growth
  • External competition has grown consistently, preventing the industry from growing more rapidly
  • Increased activity in the commercial sector will aid industry revenue growth
  • Industry Report - Industry SWOT Analysis Chapter

    The Floor Covering Stores industry is in the mature stage of its life cycle. Over the 10 years to 2022, industry value added, which measures the industry's contribution to US GDP, is projected to rise at an annualized rate of 3.5%. This rate indicates that the industry is growing at a more rapid pace than US GDP growth, which is projected to rise at an annualized rate of 2.1% over the same period. Faster IVA growth usually signals a growing industry; however, this is due to a low base early in the period due to rapid growth in industry revenue as housing starts picked up and consumers regained confidence early in the 10-year period.Merger and acquisition activity is increasing as cost pressures rises and operators scramble for market share. Lar...purchase to read more.

    Additional Insights for the Floor Covering Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Floor Covering Stores Industry are

  • Access to highly skilled workforce
  • Having good working relationships with subcontracting building trade specialists
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Housing starts and Per capita disposable income in the Floor Covering Stores industry impact industry performance..

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    What is the Floor Covering Stores Industry?

    Establishments in this industry retail carpets, rugs, tiles and vinyl flooring. Most operators manage sales and administrative activities, such as customer service, product merchandising, advertising, inventory control and cash handling. Some operators also offer installation or repair services.

    Industry Products
  • Carpets and other soft-surface floor coverings
  • Other hard-surface floor coverings
  • Hardwood flooring
  • Other services
  • Industry Activities
  • Retailing carpet
  • Retailing floor coverings
  • Retailing rugs
  • Installing floor coverings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Per capita disposable income
  • Private spending on home improvements
  • Consumer Confidence Index
  • Value of private nonresidential construction

  • Current Performance
  • Flooring demand
  • Competition and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand and spending
  • Competition rises
  • Table: Floor Covering Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Floor Covering Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Flooring Installers
  • Property Management
  • Consumers

  • Key Selling Industries
  • Carpet Mills
  • Wood Paneling Manufacturing

  • Products & Services
  • Carpets and other soft-surface floor coverings
  • Other hard-surface floor coverings
  • Hardwood flooring
  • Other services
  • Chart: Floor Covering Stores Industry Products and Services Segmentation

  • Demand Determinants
  • Housing starts and private spending on home improvement
  • Consumer confidence and per capita disposable income
  • Nonresidential construction
  • External competition from home improvement stores

  • Major Markets
  • Do-it-yourself customers
  • Building contractors
  • Do-it-for-me customers
  • All other establishments for resale
  • Businesses for end use in their own operation
  • Chart: Major Market Segmentation for the Floor Covering Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Marketing
  • Rent, utilities and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Floor Covering Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Floor Covering Stores Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Floor Covering Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Floor Covering Stores Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Housing starts (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Broadloom
  • A style of carpet that is woven on a wide loom.
  • Laminate Flooring
  • A synthetic style of flooring that simulates wood or stone through a lamination process.
  • Resilient Flooring
  • A manufactured interior floor-covering material, in either sheet or tile form, that is resilient; such flooring includes linoleum, sheet vinyl, vinyl composition tile, cork and others.
  • Why buy this report?

    IBISWorld’s Floor Covering Stores Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Floor Covering Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Floor Covering Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Floor Covering Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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