Industry Analysis & Industry Trends
Operators in the Floor and Wall Covering industry specialise in laying and tiling floors and walls in buildings and other construction projects. The activities of the industry span the residential, commercial, public and industrial building markets. As such, its performance is dependent on the level of activity in these markets and any fluctuations are likely to feed into the revenue performance of industry contractors. The weakening economy, depressed housing market and drawn-out recession have had a major impact on the construction sector as building projects have been put on hold. Thus, demand for services provided by the industry has deteriorated and various contractors have been left out in the cold... purchase to read more
Industry Report - Industry Investment Chapter
The Floor and Wall Covering industry displays a low level of capital intensity based on labour to capital (measured as depreciation) analysis; its principal service is the provision of skilled labour on construction projects. The industry's high reliance on labour is evident in the ration of labour to capital costs. Wages are estimated to account for 19.1% of industry revenue in 2012-13, while depreciation costs account for 1.7%. Thus, for every pound operators invest in capital, £11.20 is spent on wage costs.
Capital expenses vary between larger and smaller firms as larger contractors typically invest in more complex tool and equipment but the cost is generally kept low... purchase to read more