Thinking of Buying a Tiles Business in Australia? Here Are 3 Vital Questions to Ask

Tiles now account for 58.7% of the total revenue in Australia’s tiling and carpeting sector, contributing roughly $3.76 billion annually in 2025.

Despite a five-year industry decline of -1.9%, demand for tiling has remained stable, supported by renovations, commercial contracts, and government infrastructure projects.

With gross margins ranging from 30% to 40%, and average profit margins at 14.2%, well-managed tiling businesses continue to offer buyers strong potential for sustainable and scalable growth.

1. Is the Business Financially Viable?

Why It Matters:

Tiling businesses can maintain high gross margins by managing labour costs, quoting accurately, and maintaining a steady project pipeline.

With capital requirements generally low and labour as the primary expense, profitability depends on job flow, efficiency, and supplier terms.

Understanding these financial levers is essential for evaluating viability.

What to Check:

• Margins: Are gross margins in the 30%–40% range, and are labour costs tightly managed?
  
  

• Job pipeline: Does the business have upcoming confirmed projects or commercial contracts?
  
  

• Turnover consistency: Are revenues stable or fluctuating with seasonal or housing trends?
  
  

• Quoting systems: Are estimates accurate, timely, and converted into profitable jobs?

2. Does the Business Have the Right Client Base and Market Coverage?

Why It Matters:

Tiling businesses servicing both commercial and residential markets are better positioned to ride out construction cycles.

Victoria and New South Wales generate more than 60% of national tiling revenue, highlighting the importance of geographic coverage and local building activity.

Repeat work from builders, property managers, and government projects significantly enhances revenue reliability.

What to Check:

• Client mix: Is revenue spread across residential, commercial, and renovation segments?
  
  

• Geographic reach: Is the business operating in high-demand regions with strong building activity?
  
  

• Referral partnerships: Are there established relationships with developers, tile wholesalers, or builders?
  
  

• Reputation: Does the business enjoy repeat work and positive word-of-mouth or online reviews?

3. Is the Business Operationally Equipped to Scale or Specialise?

Why It Matters:

Top-performing tile businesses offer more than basic installation — waterproofing, underfloor heating, and commercial-grade project management can drive higher-value contracts.

Efficient scheduling, skilled labour, and consistent supply chains are essential to managing multiple projects and maintaining quality.

Businesses with flexible service offerings and reliable systems are best positioned to grow and diversify.

What to Check:

• Service range: Does the business offer specialised add-ons like waterproofing or acoustic tiling?
  
  

• Installer capacity: Are there skilled staff or subcontractors available to scale or manage multiple projects?
  
  

• Project systems: Are tools used for quoting, scheduling, compliance, and client communication?
  
  

• Growth readiness: Is there operational capacity to take on larger jobs or commercial contracts?

Ready to Invest in a Thriving Tiles Business?

With steady commercial demand, rising renovation activity, and solid industry margins, tile businesses remain a strong opportunity for experienced operators or trade-connected buyers.

Those who build scalable systems, secure trade partnerships, and maintain consistent quality can thrive in Australia’s evolving construction landscape.

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