NAICS 314110 Quarterly Industry Report
Carpet and Rug Mills
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 314110Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 314110 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the carpet and rug manufacturing sector, drawing on data from the U.S. Census Bureau[5] and SBA lending records. Additional data is drawn from Bureau of Labor Statistics[9].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 314110 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the carpet and rug mills industry.
Industry Definition & Overview
Carpet and Rug Mills (NAICS 314110) encompasses establishments primarily engaged in manufacturing woven, tufted, and other carpets and rugs from textile materials or from twisted paper, grasses, reeds, sisal, jute, or rags. Products include broadloom carpet, area rugs, bath mats, synthetic turf, needlepunch flooring, and specialty floor coverings for residential, commercial, and industrial use. According to the U.S. Census Bureau[5], the industry generates nearly $10 billion in annual revenue through approximately 300 active establishments, with a heavy geographic concentration in northwest Georgia where the majority of U.S. carpet production capacity is located.
The industry is dominated by a small number of large vertically integrated manufacturers, but small and mid-size producers maintain viable positions in specialty rug manufacturing, custom commercial carpet programs, and niche residential products. Industry SBA Office of Advocacy[6] notes that small carpet mills often compete on design flexibility, short-run production capability, and premium material offerings including wool, silk, and natural fiber constructions that larger tufting operations find less economical to produce.
Regulatory requirements include OSHA[7] workplace safety standards for tufting, weaving, and dyeing equipment operation, fiber dust exposure management, and chemical handling for backing and finishing processes. Environmental compliance under EPA[8] regulations addresses wastewater from dyeing operations, air emissions from latex backing application, and solid waste management for post-consumer carpet recycling initiatives. Indoor air quality standards and low-VOC certification programs administered by the Carpet and Rug Institute influence product development and marketing strategies.
What's Included in This Industry
- Valuation multiples benchmarked to carpet and rug manufacturers
- Revenue and EBITDA trends for residential and commercial carpet producers
- SBA lending data and financing terms for NAICS 314110
- Comparable transaction data from recent flooring industry M&A activity
- Industry risk factors including raw material costs and housing market exposure
- Workforce composition and labor cost benchmarks for carpet mill operations
- Regional market analysis focused on Georgia carpet manufacturing corridor
- Customer channel analysis covering residential, commercial, and hospitality buyers
- Growth projections tied to commercial construction and renovation trends
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Textile Product Mills | 314 |
| Industry Group | Textile Furnishings Mills | 3141 |
| NAICS Industry | Carpet and Rug Mills | 31411 |
| National Industry | Carpet and Rug Mills | 314110 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 313110 | Fiber, Yarn, and Thread Mills | Fiber and yarn mills supplying the nylon, polyester, polypropylene, and wool yarns that serve as primary raw materials for carpet tufting and weaving |
| 313310 | Textile and Fabric Finishing Mills | Textile finishing mills providing dyeing and finishing services for carpet and rug products that require commission coloring or specialty treatments |
| 314120 | Curtain and Linen Mills | Curtain and linen mills producing complementary home textile products that share distribution channels with carpet and rug manufacturers |
| 313320 | Fabric Coating Mills | Fabric coating mills applying latex backing, antimicrobial treatments, and stain-resistant coatings to carpet products during the finishing process |
| 423220 | Home Furnishing Merchant Wholesalers | Home furnishing merchant wholesalers distributing carpet and rug products from manufacturers to retail flooring dealers and interior designers |
| 236220 | Commercial and Institutional Building Construction | Commercial and institutional building construction projects driving demand for commercial carpet specifications and installation volume |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Georgia | 58.2% | 121 |
| 2 | California | 5.3% | 11 |
| 3 | North Carolina | 5.3% | 11 |
| 4 | Alabama | 3.9% | 8 |
| 5 | Michigan | 3.9% | 8 |
| 6 | Texas | 3.4% | 7 |
| 7 | South Carolina | 3.4% | 7 |
| 8 | Florida | 2.9% | 6 |
| 9 | Pennsylvania | 2.4% | 5 |
| 10 | Indiana | 1.9% | 4 |
% Of Establishments
0%
58%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
32
Total SBA Loans
$4.8M
Total Loan Volume
$150K
Average Loan Size
9 yrs
Average Loan Term
11.94%
Average Interest Rate
208
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Carpet and rug mills seeking SBA financing typically qualify under the SBA size standards[10] for NAICS 314110, which set the threshold at 1,500 employees for small business classification. The SBA 7(a) loan program[11] provides up to $5 million for business acquisitions, tufting equipment upgrades, and working capital needs. Market CDC/504 loan program[12] offers long-term fixed-rate financing for manufacturing facility expansion, dyeing range installations, and backing line upgrades. Lenders evaluate customer contract breadth, raw material sourcing agreements, and equipment capacity when underwriting carpet mill transactions.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 16 | $3.2M | $200K |
| 2 | UMB Bank, National Association | 8 | $1.2M | $150K |
| 3 | Readycap Lending, LLC | 8 | $400K | $50K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a carpet or rug manufacturing business?
Carpet and rug manufacturers typically trade at 4x to 7x EBITDA, with specialty rug producers and commercial carpet manufacturers commanding premium multiples. Large vertically integrated operations with their own yarn and backing production can trade at higher multiples. Per U.S. Census Bureau[5] data, the industry's concentration in northwest Georgia and consolidation trends influence transaction pricing for remaining independent operators.
What SBA loan options are available for acquiring a carpet mill?
The SBA 7(a) loan program[11] provides up to $5 million for acquisitions and equipment purchases, while the CDC/504 program[12] finances facility expansion and major tufting or dyeing equipment. Real estate-backed transactions in the Georgia carpet corridor benefit from strong comparable property data for SBA collateral valuations.
What are the main revenue drivers for carpet manufacturers?
Revenue depends on product mix between residential and commercial carpet, distribution channel breadth, and the ability to serve both commodity and specialty segments. Commercial carpet programs with architectural specification support and custom design capabilities generate premium pricing compared to commodity residential broadloom production.
What regulatory requirements affect NAICS 314110 businesses?
Mills must comply with OSHA[7] standards for tufting and dyeing equipment safety, fiber dust exposure limits, and chemical handling for latex backing processes. Per EPA[8] regulations, wastewater treatment permits are required for dyeing operations, and air emission standards apply to backing application processes. Indoor air quality certification through the Carpet and Rug Institute affects product marketability.
How does the housing market affect carpet manufacturers?
Residential new construction and renovation activity directly drive carpet demand, with housing starts and existing home sales serving as leading indicators. Commercial construction activity and tenant improvement spending provide additional demand drivers. Per Bureau of Labor Statistics[13] data, carpet manufacturing employment correlates strongly with construction cycle activity levels.
What equipment is needed for carpet manufacturing?
Core equipment includes tufting machines, yarn creels, dyeing ranges (continuous or beck), latex backing lines, finishing and shearing equipment, and cutting and packaging systems. A mid-size tufting operation requires $5 million to $20 million in equipment investment. Per SBA[14] lending data, tufting machines and dyeing ranges represent the highest-value equipment categories in carpet mill transactions.
What role does sustainability play in the carpet industry?
Sustainability has become a competitive differentiator as commercial specifiers and residential consumers demand recycled content, low-VOC products, and cradle-to-cradle certified options. Post-consumer carpet recycling programs affect both raw material sourcing and waste management costs. The EPA[8] has promoted carpet stewardship programs through partnerships with industry organizations to divert carpet waste from landfills.
What workforce challenges do carpet mills face?
Key challenges include recruiting tufting machine operators and dye technicians, competing with logistics and warehouse operations for workers in the Georgia manufacturing corridor, and training maintenance staff for increasingly automated production systems. Per Bureau of Labor Statistics[13] data, carpet manufacturing wages have risen alongside broader competition for skilled manufacturing labor.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]SBA Office of Advocacy advocacy.sba.gov
- [7]OSHA osha.gov
- [8]EPA epa.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
- [13]Bureau of Labor Statistics bls.gov
- [14]SBA sba.gov
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