Thinking of Buying a Carpet and Flooring Business in Australia? Here Are 3 Vital Questions to Ask

Australia’s carpet and flooring industry is forecast to generate $6.41 billion in 2024–25, with projected growth of 1.5% annually through to 2030.

While recent years have seen a -1.9% decline due to falling residential construction, the sector remains substantial and increasingly diversified.

With public housing programs, infrastructure demand, and a rebound in renovations, carpet and flooring businesses offer buyers long-term resilience and the opportunity to scale into commercial or multi-unit projects.

1. Is the Business Financially Viable?

Why It Matters:

Profitability in this sector sits at around 14.2% in 2024–25, though margins vary depending on project type and customer mix.

Businesses with recurring commercial contracts, access to low-cost materials, and efficient project workflows tend to outperform.

Inflation, wage pressure, and DIY competition can compress profits — making it critical to assess whether the business operates at or above industry benchmarks.

What to Check:

• Profit margins: Are net margins competitive with the 14.2% industry average?
  
  

• Client mix: Does the business rely heavily on residential jobs, or does it service larger commercial contracts?
  
  

• Cost controls: How are labour, materials, and wastage tracked and managed?
  
  

• Cash flow stability: Is revenue consistent across seasons, or subject to lumpy residential cycles?

2. Does the Location and Client Base Drive Consistent Work?

Why It Matters:

New South Wales and Victoria lead the country in flooring demand due to high-density housing and infrastructure builds.

Location and local partnerships — with wholesalers, developers, or renovators — directly affect the consistency and quality of projects.

Firms tied into referral networks or builder pipelines are best placed to win ongoing installation jobs and scale efficiently.

What to Check:

• Geographic footprint: Is the business located near growth corridors or active development zones?
  
  

• Referral sources: Are there existing partnerships with wholesalers, showrooms, or commercial builders?
  
  

• Project type: Is the business focused on small domestic jobs or larger-scale commercial installations?
  
  

• Brand presence: Does the company have positive local reviews, repeat clients, or industry recognition?

3. Is the Business Operationally Set Up for Commercial and Renovation Growth?

Why It Matters:

The flooring industry is shifting towards large-scale public and commercial projects, where efficient quoting, compliance, and crew coordination are essential.

Firms with qualified installers, up-to-date training (such as Certificate III in Wall and Floor Tiling), and the ability to quote rapidly are more competitive.

Businesses offering additional services — like floor sanding, vinyl, or PVC installation — can boost margins and client retention.

What to Check:

• Installer capability: Are staff trained and certified to handle both residential and commercial jobs?
  
  

• Workflow efficiency: Are tools in place for quoting, project scheduling, and compliance documentation?
  
  

• Service range: Does the business offer multiple floor types or add-on services to increase per-job revenue?
  
  

• Regulatory compliance: Is the business insured and operating within local licensing or safety requirements?

Ready to Invest in a Thriving Carpet and Flooring Business?

With over 18,700 operators and renewed government investment in public housing and renovations, Australia’s carpet and flooring sector is well placed for long-term recovery.

Buyers with a focus on commercial growth, cost control, and workforce management will find scalable opportunity in this essential services industry.

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