Flooring industry/ flooring installation industry

Delivered February 7th, 2018. Contributors: Abigail A., Emmanuel A., Annette R., Les and

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Flooring / Flooring Installation Industry

Overview

The flooring and flooring installation market in the United States is big business with annual income of $22bn and a growth rate of 4.6%. However, only a few players own a large portion of market share. The top five big players, Shaw Floors, Tarkett SA, Armstrong, Interface Inc., and Lumber Liquidators, earn about $10bn annually or nearly 50% of the market share. Medium sized players have their market share in hundreds of millions and there are six industry players owning 19% of the market share. On the low end, the bottom 1% consists of eight players with Bentley at the bottom with annual returns of $3.8m.  Please find below a more detailed account of our finding including how we arrived at the distribution of the market shares.

MARKET SHARE

The floor/Flooring industry is said to be an industry with low level of capital intensity. A 2017 estimate says that players will invest 20 cents on capital investment for every dollar spent on wages.  A 2016 statistic says the industry is worth over $22bn. Although there are 32 key players in the industry, a large portion of about 48% of the total income, is attributed to the top five industry players. These are Shaw Floors, Tarkett SA, Armstrong, Interface Inc., and Lumber Liquidators. Medium sized players are Empire Today, Mannington Mills Inc., Congoleum, Emster Tile, Milliken & Company and Beaulieu of America who have a market share of 13.7%.  Small players are Coronado Stone Products, Florim USA, Materials Marketing, Aacer Flooring LLC, Daltile, Porcelanosa, Mirage and Bentley. These companies have a total share of $109.5m. The rest of the market splits the remaining 40%. These numbers have been calculated by using the information provided here and here.

As shown here, the best area to invest in the floor/flooring installation industry is the residential replacement sector, which grew by 57% last year. Other areas to invest in include residential/new construction and commercial replacement, which grew at 16% and 14% respectively. The new commercial construction also makes for good investment with a growth of 13%.

This floor/flooring industry report also shows that the industry employed 186,930 Americans in 2017.

CONCLUSION
There are five big players in the floor and flooring installation industry that hold almost 50% of total market share of $22bn. Shaw Floors is the highest earner in the top five, with $4bn in market share. There are eight players in the bottom 1%. There are six industry players considered medium players of the total 32 players, and they earn their shares in hundreds of millions.

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Flooring Cost Breakdown - Orange County, CA

The cost of floor installation in Orange County varies based on the material (i.e. tile, hardwood, laminate), ranging from $4-10 per square foot for the materials. The labor cost of installation ranges from $2-3.50 per square foot and the average size of floor installation is about 998.16 square feet. Below, you will find more details about our findings.

FINDINGS
We focused our research specifically on Orange County, however, for the different type of flooring, we found different estimates and range of cost from different sources. In some cases, we were unable to find enough data. The reason for limited availability of data is probably due to the fact that cost varies widely and depends on several factors, as well as because companies that carry out floor installations generally don't disclose costs publicly. We have presented our findings below. 

Hardwood floor Installation Costs in Orange County

According to Manta, the cost of flooring installation in Orange County in 2018 are as follows:

Average cost: $10,946.00
Minimum cost: $9,783.00
Maximum cost: $12,109.00
Material costs: $8-10 per square foot

Other sources have a different estimate. According to Burton, a flooring company, its customers typically spend about $8 per square foot for engineered hardwood flooring with an additional $2 per square foot for the installation. And according to Angie's list data, "the average hardwood install costs $2,141, with prices ranging from $1,800 to $2,475." In addition, Minion says consumers in Orange County "should expect to pay $7 to $12 per square foot for quality hardwood flooring."

Tile Floor Installation Cost in Orange County
According to Manta, the cost of tile flooring installation in Orange County in 2018 are as follows:
Average: $11,066.00
Minimum Cost: $9,012.00
Maximum Cost: $13,121.00
Material Costs: $7-10 per square foot

According to Burton, "homeowners can expect to pay $6 to $6.50 per square foot for tile installation."

Tiles can cost as low as $1 per square foot and up to more than $25, depending on the type. Mosaic, glass, leather and metal tiles can cost as much as $25 per square foot. On the other hand, lower-end tiles such as "glazed ceramic tiles start around $1 per square foot, while porcelain, marble and granite tiles start at $2 per square foot, according to Costhelper."

Laminate floor Installation Cost in Orange County
According to Manta, the cost of laminate flooring installation in Orange County in 2018 are as follows:

Average Cost: $7,416.00
Minimum Cost: $5,983.00
Maximum Cost: $8,850.00
Material Costs: $4-7 per square foot

Unfortunately, we weren't able to find estimates from other sources on the cost of laminate flooring installation in Orange County.

Cost of Labor for Flooring
After an extensive search, we were only able to find data for the cost of labor for installing hardwood floors in Orange County. The average cost of labor for hardwood floor installation is $2-3.50 per square foot. The reason data on cost of labor for floor installation is scarce is probably because cost varies and depends on several factors and companies generally don't disclose cost publicly. 

Average Size of Install
After an extensive search, we were unable to find any precompiled data on the average size of floor installation project in Orange County. So we used available data on the average cost of install and the average price per square foot of materials and labor to calculate an estimate of the average size of floor installation in Orange County.

For uniformity, we used the average costs provided by Manta. Also, we assumed that the labor cost for installing tile floors and laminate floors is $2.50 per square foot, as it is for hardwood floors.
 
The equation we used is as follows:
Equation: Average size = Average cost/labor+materials per square foot

The average size of install (assuming that the averages provided by Manta are correct):

For Hardwood:
Materials ($9) + Labor (2.50) = 11.50/square foot
Average size of install = 10,946/ 11.50= 951.8 square feet

For Tile:
Materials ($8) + Labor ($2.50) = $10.50 per square foot
Average size of install= 11,066/10.50= 1053.9 square feet

For Laminate:
Materials ($5) + Labor ($2.50) = $7.50 
Average size of install= 7,416/7.50= 988.8 square feet.

So, averaging hardwood floors, tile and laminate install sizes, the average job size is:

951.8+1053.9+988.8/3 = 998.16 square feet

CONCLUSION
To wrap up, the average cost of installing floors in Orange County are as follows: Hardwood floors - $10,946; Tile floors - $11,066; and Laminate floors - $7,416. The average cost of labor is about $2.50 and the average size of install is about 998.16 square feet.

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Flooring Cost Breakdown - Los Angeles County, CA

There are several types of flooring installation available.  These include laminate, hardwood, bamboo, tile, vinyl, concrete, and epoxy. While we were unable to find average size of installations in Los Angeles County, California from publicly available information, we were able to find the average cost of installation based on the type of installation as well as other factors to be considered with the installation. 
AVERAGE COSTCosts vary by the type of flooring installed.  We have researched pricing on laminate, hardwood, bamboo, tile, concrete, and epoxy flooring.  Los Angeles is about 11% higher than the national average.  
 Laminate FlooringAccording to a Manta quote, we have found the average labor and material costs for laminate flooring installation to be around $6,000-$9,000. This quote includes $5-$7 per square foot material costs. It also includes surface preparation, components, and machinery used, and cleanup fees.

Laminate National Average
The national average compares a 200 square foot kitchen and is anywhere from $1,600-$5,000.  This estimate includes 200 square feet of Pergo laminate, EIR texture, with a 3 AC rating and includes removal of the old flooring. Unlike some types of flooring where the smaller size is cheaper, the laminate is just the opposite and the smaller pieces are more expensive. Prices for laminate material vary based on the style chosen, but range from $.69 to $2.50 depending on the style chosen. There is an 11% increase in these prices for installation in Los Angeles. There are several factors that affect pricing not included in the estimate which are re-installation of molding and baseboards, furniture removal, delivery and installation fees.

 Additional Cost Factors
There are additional measures that must be considered depending on the type of installation are:

1) Underlayment- Some laminates have a built-in laminate and to lay about 125 square feet will cost around $2.95 to $4.57 per sq.ft.

2) Padding- Some laminates require this and it costs around $30 to $35.

3) Thicker laminates- Laminate varies from 8mm to 12 mm and costs range from $1.79 to $2.29 per square foot. 

4) Textures- There are a variety of specialty textures available and costs range from $1.79 to $6 per square foot. 

5) Stairs and landings are more expensive 
 Hardwood FlooringFor average hardwood flooring installation in Los Angeles County, California, the quote is nearly double laminate at around $10,000-$12,509.  This includes materials costs of around $8-$10 per square foot. This also includes surface preparation, components, any machinery used, and cleanup fees.

Hardwood National Average
The national average for hardwood flooring installation for homeowners is around $2,400-$4,000.  This is about $12 to $20 per square foot. Los Angeles is about 11% higher than the national average for hardwood flooring installations as well. Cost varies by the type and size of flooring that is purchased. All flooring is measured and sold by the foot. Hardwood flooring is available in different types, finishes, and styles. Some of these factors are solid hardwood or engineered, wood flooring grades, and traditional wood species.  Hardwood flooring varies in price from $1 to $9 per square foot depending on what type of grade of flooring selected. 

 Additional Cost Factors
There are additional measures that must be considered depending on the type of installation are:

1) Plywood subfloor- If a plywood subfloor needs to be installed prior to hardwood, prices range from $8 to $16 per foot.

2) Vapor barrier- Occasionally there is too much moisture on a concrete floor and a barrier will need to be installed to avoid ruining the hardwood. A roll of 200 square feet costs about $16. 
BAMBOO FLOORINGThe national average costs of bamboo flooring installation for homeowners with a 16' by 16' room is around $1,250.  This is about $5 per square foot uninstalled. Installed costs are about $20 per square foot. 

 Additional Cost Factors
There are additional measures that must be considered depending on the type of installation are:

1) Plywood subflooring: If a subflooring is needed it will cost about $22 per 4' by 8' sheet plus $70 per hour to install.

2) Glue and adhesives- This is needed to attach the floor and costs about $40 per container.
TILE FLOORINGTile flooring is relatively inexpensive compared to laminate and hardwood installations.  The average installation for Los Angeles County, California is about $800-$2200 based on an 11% increase over the national average. There are different textures and smoothness that will affect the final price. Tile pricing varies between $2 to $18 per square foot depending on the grade of tile used. In addition, frost resistant and water resistant tiles are available at different pricing options. 

 National average
The national average for tile installation is $700 to $2,000. This includes 200 square feet which are a grade 2 slate and subfloor plus removal of the old flooring.

 Additional Cost Factors
There are additional measures that must be considered depending on the type of installation are:

1) Plywood subflooring- If a subfloor is needed installation will cost about $70 per hour plus the cost of the subflooring material. 

2) Sealing- It is a good idea to seal tiles and this costs about $0.55 to $1.50 per square foot. 
Concrete FlooringFor average concrete flooring installation in Los Angeles County, California, the quote is nearly double laminate at around $2,064 to $2,261. This includes materials which cost around $3 per square foot. This also includes surface preparation, components, any machinery used, and cleanup fees.

 National average
The national average for concrete installation is $400 to $800. This pricing is for a 200 square feet garage floor.

 Additional Cost Factors
There are additional measures that must be considered depending on the type of installation are:

1) Concrete sealer- A sealer is recommended and this will cost about $2 to $4 per square foot.

2) Concrete stain or paint- If there are plans to stain or paint the concrete, the cost will vary from $2 to $4 per square foot. 

3) Polymer overlay- If the concrete is rough on the surface a polymer overlay is recommended at $2 to $6 per square foot. 
VINYL FLOORINGFor average vinyl flooring installation in Los Angeles County, California, the quote is nearly double laminate at around $750 based on an 11% increase in Los Angeles County. This includes material costs around $5 per square foot. 

 National average
The national average for vinyl installation is about $670 for a 200 square foot kitchen. Vinyl flooring material is around $5 per square foot. 

 Additional Cost Factors
There are additional measures that must be considered depending on the type of installation are:

1) Subflooring- If a subflooring is needed it will cost about $22 per 4' by 8' sheet plus $70 per hour to install.

2) Adhesive- Adhesives cost about $20 per container. 
EPOXY FLOORINGFor average epoxy flooring installation in Los Angeles County, California, the is around $189 to $211. This includes materials costs of up to $1 per square foot. This also includes surface preparation, components, any machinery used, and cleanup fees. The pricing listed does not include the following:

1) Permits that are required for epoxy flooring
2) Inspection and/or LA building fees
3) Los Angeles and California sales tax
4) Additional contractor fees of $24.00 to $30.00 per hour.
CONCLUSIONIn summary, the installation pricing for flooring in Los Angeles County, California greatly varies by the type of flooring needed.  We have included pricing for epoxy, tile, vinyl, concrete, bamboo, hardwood, and laminate. The range is anywhere from several hundred dollars up to over $12,000. While we were not able to provide the average size of installation in the county due to lack of publicly available information, we have indicated the price per square foot for each of the types of flooring as well as other general information regarding pricing and needs. 

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Flooring Industry - Orange County, CA

The target market for Mission Viejo, Laguna Niguel, and Aliso Viejo were used to identify persons aged 24 to 64 as the majority of homeowners and median income earners in Orange County.  Other factors compared and contrasted between these three population samples are provided in the "Orange County Population Samples" Tab#1 of the attached spreadsheet. The typical floor installation project begins at approximately $10,000. in Orange County while the national average was only $4,402. 

market segmentationOther factors compared and contrasted between these three population samples are provided in the "Orange County Population Samples" Tab#1 of the attached spreadsheet. 

Orange County's population is 3,172,532 with a working age range of between 19 to 64 years old.  The median income was $78,145. and the average number of people per household was 3.4.

The average number of household members in Mission Viejo was 2.8 with a median income of $96,053. a population of 94,238. Laguna Niguel had 2.61 persons per household with a median income of $91,814., a population of 62,249. Finally, Aliso Viejo was 2.58 with a median income of $93,176. and a total population of 50,702.

Top playerOrange County, California has several major flooring installation industry players who are listed below. Each one detailed in the attached spreadsheet, Tab #2 "Orange County Flooring Contractors":

•	Pacific Painting & Flooring Co.
•	Gaetano Hardwood Floors Inc.
•	Complete Flooring Installation
•	American Flooring Inc.
•	Absolute Floor Service Inc.
•	Affordable Hardwood Floors
•	Vanguard Flooring Inc.
•	JD Floorworks Inc. 

PricingThe average pricing for floor installations in Orange County was not possible to find; however, the national average was $4,401. The typical range was between $2,546 and $6,475. The low end of installation costs was at $1,100. and the high end was $10,000.  

You must take into consideration the type of material that needs to be removed and any repairs or moisture barriers required; the cost would accelerate proportionately. Our sample population homes are all on the high end which would mandate starting at $10,000. and go up from there depending on square footage.  

Our most highly accredited installer quoted their typical price wood flooring project is from $7,500. to $500,000. Another figure provided was for a bonded amount of $12,000. The $10,000 mark is a good estimate for the typical flooring job in Orange County.
Conclusion:Each of the top flooring players had been checked for verification of flooring industry standards, license status, complaint history, and liability insurance.  The target market for Mission Viejo, Laguna Niguel, and Aliso Viejo was used to identify persons between the ages of 24 and 64 who are the majority of homeowners and income earners in Orange County. The typical floor installation project begins at approximately $10,000 for Orange County.

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Flooring Industry - Los Angeles County, CA

Overview

The target for flooring in Los Angeles County, CA, would be same as the target market for the United States, that is, persons born between 1946 and 1964. Typically, they will fall between 54 and 72 years who are of high income and live in two-person households. There are a number of factors that will ensure that installers capture this market. These include their experience, which directly links to their credibility and reputation; their availability and professionalism. Based on these criteria, ten companies stand out in the Los Angeles County, CA. Because obtaining the pricing offered by these organizations will require calling the customers, the national average cost of installing wood flooring was obtained. At present, installation would cost an average of $4,402. Please find below a more detailed account of our finding including how we arrived at market segmentation, the top ten installation providers and pricing.

MARKET SEGMENTATION
The special characteristics of persons who would be interested in flooring in Los Angeles County, CA, would typically be same as in the United States. Working with this information, the age group of persons who typically would pay for hardwood floors are baby boomers who live in two person households. Typically, based on their age, their children would have left home or are in the process of leaving home and they will be closer to retirement. This also partially explains why they are in the high income.  Almost 77% of this dempgraphic earn $50,000 and above. Another outstanding characteristic of this demographic is that they are 74% women.

TOP PLAYERS
The players in this industry as identified using their level of experience, credibility, availability, professionalism, reputation and affordability can be found in this list here. This list provides the top ten with their claimed unique selling points.

1.	A1 Carpet & Flooring: 35 years' experience
2.	Angels Hardwood Flooring: using premium products.
3.	Blue Ribbon Carpet Sales, Inc.: 28 years' experience
4.	Bob Mardigian Floor Covering: second generation flooring contractor
5.	Century Custom Hardwood Floor Inc.: customized floor installations.
6.	Dura Flooring, Inc.: residential and commercial flooring contractor.
7.	Floor Concepts: 20 years’ experience.
8.	Floor Vista: all kinds of floor covering applications.
9.	Floorchain, Inc.: residential and commercial services.
10.	Global Hardwood : lowest prices. 

PRICING
Although, it was not possible to get the average pricing for floor installations in Los Angeles County, CA, it was possible to get a National average of $4,402. This average is a result of calculating typical costs of between $2,546 and $6,475. Yet is possible to install hardwood floors on a low end of $1,100 and high end of $10,000, depending on a number of factors including type of flooring and/or type of wood.

CONCLUSION
The average age of target market for wood flooring in Los Angeles County, CA, based on US numbers is 54-72, who are high income earners and live in two-person households. They would typically spend between $1,000 and $10,000 in installations with the average figure being $4, 402. Pricing for individual companies in the area can only be obtained by calling the companies for private consultations.