Histometrics

BDC · CEF Analytics

Public Reference

Industry Primers

Bottom-up NAICS industry primers written for both public-market and private investors. Leaf industries are researched from the ground up; every group, subsector, and sector above them reads as a contrast across the industries beneath it.

2122 industries · 24 sectors · NAICS 2022

Researched with AI assistance from official U.S. statistics and independent sources, with citations on every page. Figures are not individually verified against pinned evidence — primers marked Evidence-verified are. Industry research, not investment advice. Methodology.

IndustryNAICS 23833Construction

Flooring Contractors (U.S.) — Industry Rollup Primer

NAICS 2022 code 23833. A Histometrics rollup primer for public-market and private investors. ("NAICS" = North American Industry Classification System, the U.S. government's standard code for industries.) This is a short pass-through page: NAICS 23833 contains exactly one child industry, 238330, and is economically identical to it. For the full deep dive — company-by-company detail, unit economics, and the roll-up map — see the child primer, Flooring Contractors, NAICS 238330.

1. Overview

Flooring contractors are the specialty-trade businesses that physically install, repair, and refinish floors — carpet, hardwood, laminate, and resilient surfaces like luxury vinyl plank — in homes, apartments, offices, warehouses, hospitals, and schools. They are the labor-and-logistics layer between the mills that make flooring and the stores that sell it [4].

At the 5-digit NAICS "industry" level, code 23833 is not a broader grouping that rolls several distinct trades together. It has a single child, the 6-digit national industry 238330, and the two codes describe the same businesses. So everything true of 238330 is true of 23833: a large, steady, cyclical-but-not-fragile slice of the U.S. home-improvement and construction economy that remains overwhelmingly local, private, and un-consolidated [1][2]. There is no pure-play, publicly traded flooring-installation company; public investors reach the trade only through adjacent manufacturers, a specialty retailer, and the home centers, while direct, pure ownership sits entirely in private hands [20][23][24].

Takeaway: treat 23833 and 238330 as one and the same. This page gives the rollup's own ground-truth federal figures and a compressed tour; the child primer carries the full argument.

2. What's inside — and why this level equals its one child

NAICS is a nested system: a 5-digit industry can contain one or more 6-digit national industries. Code 23833 contains exactly one:

6-digit child Name Relationship to 23833
238330 Flooring Contractors The sole child — identical scope, identical statistics

Because the child is the whole of the parent, the U.S. Census Bureau reports the same establishment, employment, receipts, and concentration figures at both levels [1][2]. There is no aggregation to do and no sibling industries to weigh against each other.

Scope reminder (what's in the code). Establishments primarily engaged in installing, repairing, and refinishing resilient floor tile (vinyl and linoleum, including luxury vinyl plank), carpet, and hardwood — including floor laying, sanding, scraping, and finishing, across new construction, alterations, and repair [4]. Deliberately excluded and living in other codes: ceramic tile, stone, mosaic, and terrazzo (NAICS 238340); poured concrete floors (238110); epoxy floor coatings (238190); the manufacture of flooring (carpet mills 314110, hardwood milling 321918, ceramic tile 327120); and retail sale of flooring, including home centers (sector 44–45) [4]. The child primer details these boundary lines — the ceramic-tile exclusion is the single most common misconception.

3. How big it is

Federal statistics for NAICS 23833 (our ground-truth figures). The two federal sources carry different reference years — 2023 County Business Patterns (CBP) for establishment/employment/payroll counts, 2022 Economic Census (EC) for receipts and concentration — so this is not a single-year snapshot [1][2]. These figures are identical to the 238330 child, as expected for a single-child code.

Metric Value Source
Receipts (revenue), employer firms $24.18 billion (2022) Census, Economic Census [2]
Employer establishments 17,989 (2023) Census, County Business Patterns [1]
Employer firms 17,269 (2022) Census, Economic Census [2]
Paid employees 84,998 (2023) Census, CBP [1]
Annual payroll $5.16 billion (2023) Census, CBP [1]
First-quarter payroll $1.19 billion (2023) Census, CBP [1]
Avg. receipts per firm ~$1.4 million derived from [2]
Avg. payroll per employee ~$60,700 derived from [1]

Concentration is near-nonexistent. The top 4 firms hold 4.7% of revenue, the top 8 hold 7.6%, the top 20 hold 13.0%, and the top 50 hold 20.9% [2]. The Herfindahl-Hirschman Index (HHI, a standard concentration measure running from near 0 for perfect fragmentation up to 10,000 for a monopoly) is just 12.4 [2] — about as unconcentrated as any U.S. industry gets. Note ~$60,700 is total payroll per employee (wages plus payroll taxes and benefits across all workers), not a take-home wage.

Undercount caveat — important here. These figures count only employer businesses (those with payroll); the Census explicitly excludes nonemployer, owner-operated firms [5]. Because so much flooring work is done by single-person crews and 1099 subcontractors (independent workers paid on tax form 1099 rather than as W-2 payroll employees), the true business population is several times larger — private trackers that include nonemployer sole proprietors put the count on the order of 100,000+ flooring-installation businesses [6]. We use the Census receipts as the like-for-like ground truth for the code itself. The federal file reports no industry-wide profit, margin, utilization, or growth figures; those are not inferable from receipts.

4. The investable universe

Because 23833 is 238330, the investable map is the child's map: there is no pure-play, publicly traded flooring-installation contractor, so value for public investors concentrates in adjacent businesses, while the actual installation layer is held privately (family firms, employee-owned regionals, and private-equity roll-ups) [1][6]. The most direct public links:

Company Ticker What it actually is
Lowe's Companies NYSE: LOW Home center; owns Artisan Design Group, the largest builder-channel install platform, bought June 2025 for $1.325B — the closest public link to real installation, but a tiny slice of Lowe's [20][21]
The Home Depot NYSE: HD Home center; installed-flooring services via third-party installers, plus pro distribution [22]
Floor & Decor Holdings NYSE: FND Specialty hard-surface flooring retailer — purest listed bet on flooring demand; does not install [23]
Mohawk Industries NYSE: MHK World's largest flooring manufacturer; upstream of the trade [24]
Interface Nasdaq: TILE Commercial modular carpet-tile and LVT manufacturer [25]

The private layer — Artisan Design Group (now Lowe's), Interior Logic Group (Blackstone), Diverzify (Paceline), Empire Today, Bonitz, and the tail of ~17,000 employer firms — is where the pure 238330 economics live [18][20]. See the child primer for the full table and roll-up detail.

5. How the money works

A labor-and-working-capital business, not a capital-intensive one: a firm needs trucks, tools, a license, and — above all — crews. Profit stacks on two margins per job — a material markup (covering ordering, delivery, waste, which alone runs 15–20% of material bought, and warranty risk) and an installation labor margin (the spread between what the customer pays for labor and what the crew or subcontractor is paid) [8][9]. Labor is where the profit and the risk both sit; a single botched install triggers a callback that can erase a job's margin.

Industry (not federal) sources put direct job costs around 60–63% of revenue, gross margin near 30–40% depending on channel, and a healthy operator's operating margin — EBITDA (earnings before interest, taxes, depreciation, and amortization) — around 15–20% [8][9]. The federal data does not report margins. The levers owners pull: product and channel mix, crew utilization, callback/rework rate, bidding discipline, and backlog/cash conversion. The child primer breaks each down.

6. What drives demand

Flooring demand blends a stable maintenance base with a cyclical construction/turnover overlay [10]:

  • Repair & remodel (R&R) — the ballast. ~140 million existing U.S. homes need floors replaced eventually; homeowner-improvement spending is tracking toward record levels, and Harvard's Leading Indicator of Remodeling Activity (LIRA) points to mid-single-digit R&R growth in 2026 accelerating into 2027 [11][12].
  • Existing-home sales trigger re-flooring; high mortgage rates freeze that trigger, falling rates release it.
  • New residential construction (~1.32 million starts in 2025, below demographic need) is a modest drag with room to recover [13].
  • Commercial/institutional (~30% of volume): offices weak, but warehouses, data centers, reshoring factories, healthcare, and education are strong and favor durable resilient flooring [7][13].
  • Multifamily "turn" work — apartment operators re-floor between tenants on a budget cycle — is unusually resilient [18].
  • Product-mix shift toward luxury vinyl plank (LVP), the fastest-growing category, away from carpet; LVP's click-lock format also diverts some volume to DIY [7].

7. Regulation

Regulated mostly at state and local level, plus federal safety and product rules; requirements are largely operational rather than industry-specific [17]. Key items, all detailed in the child primer:

  • Licensing — no federal license; state/local/project-value patchwork (e.g. California's C-15 Flooring license), itself a barrier favoring established firms [17].
  • OSHA respirable crystalline silica standard (29 CFR 1926.1153) when cutting or grinding tile, stone, or subfloor [14].
  • EPA lead-paint (RRP) rule for work disturbing painted surfaces in pre-1978 housing [15]; asbestos rules for older tile and adhesives [16].
  • Product/air-quality rules — VOC (volatile organic compound) limits on adhesives and finishes; formaldehyde limits on composite-wood flooring.
  • Worker classification — heavy reliance on 1099 installers creates real exposure to federal and state (e.g. California AB5) misclassification rules.

Scaled operators with compliance systems absorb these more easily than a one-crew shop — a modest edge for the roll-ups.

8. Competitive dynamics and consolidation

The baseline is near-atomistic fragmentation (HHI 12.4, top 4 under 5%), with low barriers to entry — a truck, tools, a license, and a crew [2]. On top of that stable long tail, two consolidation vectors are reshaping the top of the market [18][19]:

  1. Builder/multifamily install platforms aggregate local installers to serve national homebuilders and apartment owners — flagship Artisan Design Group, sold to Lowe's in June 2025 for $1.325 billion, rivaled by Interior Logic Group inside Blackstone [19][20].
  2. Commercial contract-flooring roll-ups stitch together regional installers — Diverzify (Paceline) at 65+ locations, alongside smaller platforms [18].

The strategic theme is vertical integration: home centers and manufacturers pushing down into installation to capture install margin and lock in builder relationships. The local remodel trade, meanwhile, stays as fragmented as ever. Full treatment in the child primer.

9. Risks

Same risk profile as 238330:

  • Cyclicality — demand tracks interest-rate-sensitive housing turnover, starts, and commercial construction; big remodels are deferrable [24].
  • Labor — a shrinking, aging pool of skilled installers, wage inflation, and misclassification liability [10].
  • Thin margins / callback risk — moisture, uneven subfloors, mismeasurement, and missed schedules can erase a job's profit.
  • Input-cost and trade-policy volatility — much LVT and tile is imported; tariffs and anti-dumping duties flow straight into material costs [24].
  • Customer concentration — install platforms dependent on a few large builders live or die with those builders' volumes.
  • Substitution — click-lock LVP lets some homeowners skip the pro installer [7].
  • Roll-up/vintage risk — consolidators that bought at cycle peaks have shown strain [18].
  • Policy — the 2025 One Big Beautiful Bill Act (OBBBA) ended the 25C/25D residential energy credits after 2025; flooring was not directly eligible, but the renovation "halo" leaves a 2026 residential comparison headwind (multifamily/commercial largely insulated) [18].
  • For public investors — no pure play, so exposure is diluted by a manufacturer's or retailer's own mix.

10. How to invest and the outlook

Public routes (all indirect): Lowe's (LOW), the only listed owner of a large install platform (ADG) [20]; Floor & Decor (FND), the purest listed proxy for flooring demand, historically at a premium valuation [18][23]; Mohawk (MHK) / Interface (TILE), the manufacturers [24][25]; Home Depot (HD), diversified pro exposure [22].

Private routes (the only pure plays): own a local flooring business — small firms change hands at low single-digit multiples of owner earnings [18]; back a PE roll-up — commercial-install platforms have traded ~9–11x EBITDA, multifamily ~7–9x, tuck-ins ~3–5x seller's discretionary earnings [18]; or franchise for a lower-capital entry [18].

Near-term outlook (forward-looking judgment). A stable maintenance base with a recovering cyclical overlay: R&R is the ballast, expected to grow mid-single digits into 2026 and faster in 2027 [11]; sustained falling rates would unlock frozen existing-home turnover and remodel financing. Commercial demand is supported by data-center, warehouse, healthcare, and reshoring construction favoring durable resilient flooring [7], while LVP keeps taking share [7]. Headwinds: the 2026 residential comparison from expired energy credits [18], tariff exposure [24], and the persistent skilled-labor shortage [10]. Structurally, expect continued consolidation at the top even as the local remodel trade stays fragmented. For the full company-level detail, unit economics, and roll-up map, read the child primer, NAICS 238330 — Flooring Contractors.

Sources

  1. U.S. Census Bureau. County Business Patterns 2023, NAICS 238330 (establishments, employment, payroll). https://www.census.gov/data/datasets/2023/econ/cbp/2023-cbp.html
  2. U.S. Census Bureau. 2022 Economic Census — Concentration of Largest Firms, NAICS 238330 (firms, receipts, CR4/CR8/CR20/CR50, HHI). https://api.census.gov/data/2022/ecnsize/groups/EC2200SIZECONCEN.html
  3. U.S. Small Business Administration. Table of Small Business Size Standards (NAICS 238330 = $19 million). 2023. https://www.sba.gov/document/support-table-size-standards
  4. U.S. Census Bureau. 2022 NAICS — 238330 Flooring Contractors (definition and cross-references). https://www.census.gov/naics/?input=238330&year=2022&details=238330
  5. U.S. Census Bureau. Frequently Asked Questions — 2022 Economic Census (nonemployer businesses excluded). https://www.census.gov/programs-surveys/economic-census/year/2022/about/faq/faq-general.html
  6. IBISWorld. Flooring Installers in the US — Industry Report (business count and market size). 2025–2026. https://www.ibisworld.com/united-states/industry/flooring-installers/196/
  7. Grand View Research. Flooring Market Size, Share & Trends Analysis Report (LVT/LVP growth, resilient mix). 2024. https://www.grandviewresearch.com/industry-analysis/flooring-market-analysis
  8. Peak Business Valuation. Value Drivers for Flooring Installers. 2024. https://peakbusinessvaluation.com/value-drivers-for-flooring-installers/
  9. Sharpsheets. How Profitable is a Flooring Installation Business? (margins and cost structure). 2024. https://sharpsheets.io/blog/how-profitable-is-a-flooring-installation-business-in-2023/
  10. U.S. Bureau of Labor Statistics. Occupational Outlook Handbook — Flooring Installers and Tile and Stone Setters (2024 median wage; demand sources). https://www.bls.gov/ooh/construction-and-extraction/tile-and-marble-setters.htm
  11. Harvard Joint Center for Housing Studies. Leading Indicator of Remodeling Activity (LIRA). 2026. https://www.jchs.harvard.edu/research-areas/remodeling/lira
  12. National Association of Home Builders — Eye on Housing. Who Drives Remodeling Spending? 2026. https://eyeonhousing.org/2026/05/who-drives-remodeling-spending/
  13. IB Interview Questions. Building Products: Residential Starts, R&R Spending, and the Housing Cycle. 2025. https://ibinterviewquestions.com/guides/industrials-investment-banking/building-products-residential-starts-rr-housing-cycle
  14. U.S. Occupational Safety and Health Administration. Respirable Crystalline Silica — Construction (29 CFR 1926.1153). https://www.osha.gov/laws-regs/regulations/standardnumber/1926/1926.1153
  15. U.S. Environmental Protection Agency. Renovation, Repair and Painting Program: Contractors (lead-safe rule). https://www.epa.gov/lead/renovation-repair-and-painting-program-contractors
  16. U.S. Environmental Protection Agency. Asbestos NESHAP (National Emission Standards for Hazardous Air Pollutants). https://www.epa.gov/stationary-sources-air-pollution/asbestos-national-emission-standards-hazardous-air-pollutants
  17. U.S. Small Business Administration. Apply for Licenses and Permits (state/local variation). https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
  18. CT Acquisitions. Flooring PE Roll-Up Tracker 2026 (Diverzify, Interior Logic, Empire Today, valuation multiples, OBBBA impact). 2026. https://ctacquisitions.com/guides/flooring-pe-rollup-tracker-2026/
  19. The Sterling Group. The Sterling Group Agrees to Sell Artisan Design Group to Lowe's Companies, Inc. 2025. https://sterling-group.com/
  20. Lowe's Companies, Inc. Lowe's Completes Acquisition of Artisan Design Group ($1.325 billion). June 2025. https://corporate.lowes.com/newsroom/press-releases/lowes-completes-acquisition-artisan-design-group-06-02-25
  21. Lowe's Companies, Inc. Form 10-K / acquisition disclosure — Artisan Design Group. 2025–2026. https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000060667&type=10-K
  22. The Home Depot, Inc. 2025 Annual Report / Form 10-K (installed services, third-party installers, SRS/GMS pro distribution). 2026. https://ir.homedepot.com/
  23. Floor & Decor Holdings, Inc. Form 10-K and FY2024 financial results (does not perform installation). 2025–2026. https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001507079&type=10-K
  24. Mohawk Industries, Inc. Form 10-K (FY2024 net sales ~$10.8B; housing-turnover and tariff commentary). 2025–2026. https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000851968&type=10-K
  25. Interface, Inc. Form 10-K / 2024 revenue (~$1.32B; commercial carpet tile, LVT, rubber). 2025–2026. https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000715787&type=10-K
  26. Diverzify. Diverzify Completes $240 Million Recapitalization (led by Paceline Equity Partners). 2026. https://diverzify.com/diverzify-paceline-investment/
  27. Empire Today. About Empire / ownership (Charlesbank Capital Partners; H.I.G. Capital). https://www.empiretoday.com/about-empire