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    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2023

    Yasmin Mahomedy | South Africa | 25 January 2023

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2019

    Marc Bosman | South Africa | 17 January 2019

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2016

    Marc Bosman | South Africa | 31 May 2016

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2014

    Brenda Young | South Africa | 18 August 2014

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report on the clay and concrete bricks industry contains information on notable players and developments in the industry and factors that influence it, specifically the state of the construction industry. There are profiles of 21 companies including Corobrik, Brikor, Ocon, Ingonyama Blocks and Rheebok Brick Operations. \r\n

    Introduction

    • The brick manufacturing industry, which comprises clay and concrete bricks, is closely linked to the construction sector, which has been affected by the poor economy and delays in the implementation of many of government’s infrastructure projects. \r\n
    • The construction sector’s contribution to GDP has declined for several years. \r\n
    • Clay brick manufacturers fared a bit better than concrete manufacturers in the past year due to increased activity in the residential building sector.\r\n
    • 2023 is expected to be a slower year for residential building due to rising inflation, interest rate hikes, and the knock-on effects of increased interest on property owners.

    Strengths

    • Clay brick production is a source of income, job creation and skills development in rural areas.
    • Formal clay brick sector is well regulated in terms of legislation.

    Weaknesses

    •  The clay brick manufacturing process is energy intensive and not environmentally friendly.
    • Concrete brick manufacturers rely on the public sector for large projects.
    • High barriers to entry for formal clay brick manufacturers.

    Opportunities

    • Projects focusing on sustainability.
    • The development of affordable housing.
    • The rollout of infrastructure development projects.

    Threats

    • Climate change, especially floods, wildfires, and drought.
    • Economic uncertainty, and rising inflation.
    • Fuel price volatility and reduced gross profit margins.
    • High electricity costs and loadshedding.

    Outlook

    • Despite the delay in civil infrastructure development, declining construction industry revenue and higher construction material costs, construction activity is gradually recovering. \r\n
    • The National Infrastructure Plan 2050 provides a long-term roadmap for infrastructure development. Corobrik has invested in a new manufacturing plant, placing it well to take part in this development. \r\n
    • The construction industry is expected to stabilise at 3% per annum from 2023 to 2026.\r\n

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    The Manufacture of Clay and Concrete Bricks Industry in South Africa
    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2023

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    Industry Landscape

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    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2019-01-17

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    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2016-05-31

    R 1 900.00(ZAR) estimated $108.67 (USD)*

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    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2014-08-18

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    Table of Contents

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    PAGE
    1. INTRODUCTION 5
    2. DESCRIPTION OF THE INDUSTRY 5
    2.1. Industry Value Chain 7
    2.2. Geographic Position 8
    2.3. Size of the Industry 9
    3. LOCAL 9
    3.1. State of the Industry 9
    3.2. Key Trends 13
    3.3. Key Issues 13
    3.4. Notable Players 13
    3.5. Corporate Actions 14
    3.6. Regulations 15
    3.7. Enterprise Development and Social Development 16
    4. AFRICA 18
    5. INTERNATIONAL 20
    6. INFLUENCING FACTORS 21
    6.1. Loadshedding 21
    6.2. Economic Environment 21
    6.3. Input Costs 22
    6.4. Labour 23
    6.5. Environmental Issues 24
    6.6. Technology, R&D, Innovation 25
    6.7. Increasing Urbanisation and Need for Housing 25
    6.8. Government Support 26
    7. COMPETITIVE ENVIRONMENT 26
    7.1. Competition 26
    7.2. Ownership Structure of the Industry 27
    7.3. Barriers to Entry 28
    8. SWOT ANALYSIS 28
    9. OUTLOOK 29
    10. INDUSTRY ASSOCIATIONS 29
    11. REFERENCES 30
    11.1. Publications 30
    11.2. Websites 30
    APPENDIX 1 31
    Summary of Notable Players 31
    COMPANY PROFILES 34
    Afrimat Ltd 34
    Aveng Africa (Pty) Ltd 40
    Brakkefontein Clay Products (Pty) Ltd 45
    Brikor Ltd 47
    Corobrik (Pty) Ltd 51
    Deranco Blocks (Pty) Ltd 54
    Good Hope Brick (Pty) Ltd 56
    Grahamstown Brick (Pty) Ltd 58
    Inca Concrete Products (Pty) Ltd 60
    Infrastructure Specialist Group (Pty) Ltd 62
    Ingonyama Blocks CC 65
    J J Bricks (Pty) Ltd 67
    L K Brick and Block Manufacturers (Pty) Ltd 69
    Langkloof Steenwerwe (Pty) Ltd 71
    Ngqura Brick (Pty) Ltd 73
    Ocon Brick (Pty) Ltd 75
    Rheebok Brick Operations (Pty) Ltd 77
    S A Block (Pty) Ltd 79
    West End Cement Bricks (Pty) Ltd 81
    West End Claybrick (Pty) Ltd 83
    Worcester Bakstene (Pty) Ltd 85

    Report Coverage

    The Manufacture of Clay and Concrete Bricks report describes the state of the industry and conditions and factors influencing its success. It includes comprehensive profiles of 28 companies including Corobrik, the country’s largest brick manufacturer, which produces a billion bricks annually and has announced significant investment in expansion. There are also profiles on companies such as Ocon Brick, which was sold by the Infrastructure Specialist Group in September, Langkloof Bricks, which uses waste tyres to dry clay bricks and Algoa, which adds condemned juice waste to clay in the mixing and extrusion process, providing an equivalent litre savings in municipal water.

    Introduction

    This report focuses on the manufacture of clay bricks and concrete masonry units, which are important components of the building and construction industry. These manufacturers are faced with unique challenges. Clay bricks manufacturers’ challenges include Carbon Tax and environmental impacts from coal-fired kilns, and concrete masonry unit manufacturers face potential medium-term ash input shortages as pressure mounts to move to renewable energy and as ash output declines. Despite the construction industry being in decline since 2010, with major construction industry players in dire straits, major brickmakers continue to report good results due to increasing demand for residential property. While industry output has remained relatively constant since 2014 at approximately 3.6 billion standard brick equivalents (SBE), the industry continues to contract and concentrate. Industry leader Corobrik, which produces approximately 28% of total industry output, has announced significant investment in expansion.

    Strengths

    • High standards with clay and concrete bricks being subject to legislation regulation.
    • Plentiful supplies of necessary raw materials.
    • Production of concrete bricks is relatively easy and there are low barriers to entry as long as there is access to competitively priced inputs.

    Weaknesses

    • High barriers to entry for clay brick manufacturers, including a long cash flow cycle.
    • The manufacturing process is energy intensive and not environmentally friendly.

    Opportunities

    • Acquisitions and expansion into neighbouring African countries.
    • More than 1.5 million RDP houses will be built between now and 2020 at a cost of R30bn per annum.
    • Proposed government infrastructure spending of R800bn on various construction projects, including independent power producer projects, which will support sustainable growth in the construction industry and by extension, the brick manufacturing industry.
    • The re-emergence of the highdensity townhouse market.

    Threats

    • A further decrease in the number of home loans granted.
    • Concrete 3D printing
    • Meeting emissions controls in the future and the Carbon Tax in 2017.
    • Rising input costs, mainly due to increasing transport and electricity prices.
    • Slow economic recovery which could further depress residential housing demand.
    • Slow sales in the last quarter of the calendar year with the exacerbated slow-down of construction material products in November and December
    • Substitution of bricks with other building materials such as timber, glass and synthetic products.
    • The government infrastructure programme not being rolled out fast enough.

    Outlook

    Fitch Solutions in January 2019 forecast that the construction industry would exit recession and grow at a pedestrian 2.4% in 2019, compared to expected growth of 6.8% for sub-Saharan Africa, Business Day reported. Slow growth will delay the turn-around of major construction industry players and the forecast growth, which is well below the Reserve Bank’s consumer inflation forecast of 5.5% for 2019, essentially implies further contraction or stagnation. Construction materials sales are thus expected to remain at present levels, despite the increasing demand for accommodation and housing and government’s infrastructure development plans. The trading environment is expected to continue to be tough in the face of an economic environment that shows little sign of improving in the short-term.

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    The Manufacture of Clay and Concrete Bricks Industry in South Africa
    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2019

    Full Report

    R 1 900.00(ZAR) estimated $108.67 (USD)*

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 76.07 (USD)*

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    Historical Reports

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2023-01-25

    R 9 500.00(ZAR) estimated $543.34 (USD)*

    View Report Add to Cart

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2016-05-31

    R 1 900.00(ZAR) estimated $108.67 (USD)*

    View Report Add to Cart

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2014-08-18

    R 1 900.00(ZAR) estimated $108.67 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 7
    4.1. Local 7
    4.1.1. Corporate Actions 12
    4.1.2. Regulations 12
    4.1.3. Enterprise Development and Social Economic Development 15
    4.2. Continental 16
    4.3. International 19
    5. INFLUENCING FACTORS 20
    5.1. Increasing Urbanisation and the Need for Housing 20
    5.2. Government Intervention 21
    5.3. Rising Operating Costs 22
    5.4. Labour 25
    5.5. Cyclicality 26
    5.6. Economic Environment 27
    5.7. Technology, Research and Development (R&D) and Innovation 28
    5.8. Environmental Concerns 29
    6. COMPETITION 30
    6.1. Barriers to Entry 31
    7. SWOT ANALYSIS 32
    8. OUTLOOK 33
    9. INDUSTRY ASSOCIATIONS 33
    10. REFERENCES 34
    10.1. Publications 34
    10.2. Websites 34
    APPENDIX 1 36
    Summary of Major Players 36
    COMPANY PROFILES 39
    A B BRICKWORKS (PTY) LTD 39
    AFRIMAT LTD 41
    AVENG AFRICA (PTY) LTD 46
    BRAKKEFONTEIN CLAY PRODUCTS (PTY) LTD 52
    CAPE CONCRETE WORKS (PTY) LTD 54
    COROBRIK (PTY) LTD 56
    DERANCO BLOCKS (PTY) LTD 60
    ECHO FLOORS (PTY) LTD 62
    ECHO PRESTRESS (DURBAN) (PTY) LTD 64
    ECHO PRESTRESS (PTY) LTD 66
    ELEMATIC SA (PTY) LTD 68
    GOOD HOPE BRICK (PTY) LTD 70
    GRAHAMSTOWN BRICK (PTY) LTD 72
    INCA CONCRETE PRODUCTS (PTY) LTD 74
    INFRASTRUCTURE SPECIALIST GROUP (PTY) LTD 76
    J J BRICKS (PTY) LTD 79
    JT AND T AGENCIES AND MAINTENANCE CC 81
    L K BRICK AND BLOCK MANUFACTURERS (PTY) LTD 82
    LANGKLOOF STEENWERWE (PTY) LTD 84
    NGQURA BRICK (PTY) LTD 85
    OCON BRICK (PTY) LTD 87
    PORTLAND HOLLOWCORE SLABS (PTY) LTD 89
    RHEEBOK BRICK OPERATIONS (PTY) LTD 91
    S A BLOCK (PTY) LTD 93
    TOPFLOOR CONCRETE LTD 95
    WEST END CEMENT BRICKS (PTY) LTD 97
    WEST END CLAYBRICK (PTY) LTD 99
    WORCESTER BAKSTENE (PTY) LTD 101

    Report Coverage

    The Manufacture of Clay Bricks and Concrete Masonry Units describes the industry in South Africa, highlights current conditions and discusses the factors influencing the success of the sector. Twenty eight industry players are profiled, including leaders in the concrete sector Aveng Africa (Pty) Ltd which manufactures 55 million paving blocks per annum and the Echo Group, the market leader in volume and sales of prestressed precast hollowcore slabs. Also profiled is clay brick maker Corobrik (Pty) Ltd, which employs 2,550 people and manufactures 820 million bricks per annum, and small enterprise, A B Brickworks (Pty) Ltd which employs 50 people at its plant in Gauteng

    Introduction

    This report focuses on the manufacture of clay bricks and concrete masonry units, an important component of the building and construction industry. Statistics South Africa (StatsSA) figures show that the building and construction industry recorded an income of R395bn in 2014 and that the formal and informal clay brick sectors combined employed approximately 20,000 people. Industry analysts report that although the construction industry has been in decline since 2010, some sub-sectors including brick makers, cement producers and equipment suppliers report positive growth and there is significant unsatisfied demand for industry products and services.

    Strengths

    • High standards with clay and concrete bricks being subject to the provisions of the NRCS Act and its regulations.
    • Plentiful supplies of necessary raw materials.
    • Production of concrete bricks is relatively easy and there are low barriers to entry as long as there is access to competitively priced inputs.

    Weaknesses

    • High barriers to entry for clay brick manufacturers, including a long cash flow cycle.
    • The manufacturing process is energy-intensive and not environmentally friendly.

    Opportunities

    • Acquisitions and expansion into neighbouring African countries.
    • More than 1.5 million RDP houses between now and 2020 at a cost of R30bn per annum.
    • Proposed government infrastructure spending of R816bn on various construction projects, including IPP projects, which will support sustainable growth in the construction industry and by extension, the brick manufacturing industry.
    • The re-emergence of the high density townhouse market.

    Threats

    • A further decrease in the number of home loans granted.
    • Meeting emissions controls in the future and the Carbon Tax in 2017.
    • Rising input costs, mainly due to increasing transport and electricity prices.
    • Slow economic recovery which could further depress residential housing demand.
    • Substitution of bricks with other building materials such as timber, glass and synthetic products.
    • The government infrastructure programme not being rolled out fast enough.

    Outlook

    The brick making industry considers the return of Finance Minister Pravin Gordhan, the tone of the 2016 budget, the increasing demand for accommodation and housing and the increasing sense of urgency with which government views the need to deliver critical infrastructure projects with the assistance of the private sector as signs of a more positive outlook for the overall construction industry. The trading environment is expected however to continue to be tough in the face of an economic environment that shows little sign of improving in the short-term and a political climate which seems set to engender continued policy uncertainty and restricted local business investment.

    Read More..
    The Manufacture of Clay and Concrete Bricks Industry in South Africa
    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2016

    Full Report

    R 1 900.00(ZAR) estimated $108.67 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 76.07 (USD)*

    Buy Now +

    Historical Reports

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2023-01-25

    R 9 500.00(ZAR) estimated $543.34 (USD)*

    View Report Add to Cart

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2019-01-17

    R 1 900.00(ZAR) estimated $108.67 (USD)*

    View Report Add to Cart

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2014-08-18

    R 1 900.00(ZAR) estimated $108.67 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 10
    4.1. Local 10
    4.1.1. Corporate Actions 16
    4.1.2. Regulations 16
    4.1.3. Enterprise Development and Social Economic Development 19
    4.2. Continental 20
    4.3. International 22
    5. INFLUENCING FACTORS 23
    5.1. Increasing Urbanisation and the Need for Housing 23
    5.2. Government Intervention 24
    5.3. Rising Input Costs 25
    5.4. Labour 27
    5.5. Cyclicality 29
    5.6. Economic Environment 30
    5.7. Technology, Research and Development (R&D) and Innovation 30
    5.8. Environmental Concerns 32
    6. COMPETITION 34
    6.1. Barriers to Entry 36
    7. SWOT ANALYSIS 37
    8. OUTLOOK 37
    9. INDUSTRY ASSOCIATIONS 38
    10. REFERENCES 39
    10.1. Publications 39
    10.2. Websites 40
    COMPANY PROFILES 42
    A B Brickworks (Pty) Ltd 42
    Afrimat Ltd 43
    Apollo Brick (Pty) Ltd 49
    Aveng Africa (Pty) Ltd 52
    Cape Concrete Works (Pty) Ltd 58
    Corobrik (Pty) Ltd 59
    Deranco Blocks (Pty) Ltd 63
    Echo Floors (Pty) Ltd 65
    Echo Prestress (Durban) (Pty) Ltd 67
    Echo Prestress (Pty) Ltd 69
    Elematic SA (Pty) Ltd 71
    Grahamstown Brick (Pty) Ltd 73
    Good Hope Brick (Pty) Ltd 75
    Infrastructure Specialist Group (Pty) Ltd 79
    J J Bricks (Pty) Ltd 82
    Langkloof Steenwerwe (Pty) Ltd 85
    Ngqura Brick (Pty) Ltd 90
    Rheebok Brick Operations (Pty) Ltd 94
    West End Claybrick (Pty) Ltd 102
    Worcester Bakstene (Pty) Ltd 104

    Introduction

    This report focuses on the manufacture of clay and concrete bricks, a sector that employs approximately 14,000 people. The Building and Construction sector is valued at approximately R380bn annually. The clay and concrete brick industry is reliant upon the construction industry, the success of which depends largely on the government’s R847bn infrastructure programme. The construction industry is also struggling with tighter credit conditions, subdued residential construction activity and rand exchange rate weakness and inflation concerns. Low levels of activity in the building industry have been exacerbated by the impact of the metal workers’ strike which was resolved at the end of July 2014.

    Strengths

    • High standards with clay and concrete bricks being\nsubject to the provisions of the NRCS Act and its\nregulations.
    • Plentiful supplies of necessary raw materials.
    • Production of concrete bricks is relatively easy and\nthere are low barriers to entry as long as there is access\nto competitively priced inputs.

    Weaknesses

    • High barriers to entry for clay brick manufacturers, including a long cash flow cycle.
    • The manufacturing process is energy-intensive and not\nenvironmentally friendly.

    Opportunities

    • 2.9 million low-cost houses must be delivered from\n2012 to 2020 to help in the eradication of all slums or\ninformal settlements.
    • Acquisitions and expansion into neighbouring African\ncountries.
    • Government infrastructure spending of R847bn on\nvarious construction projects, including solar power\nprojects, which will support sustainable growth in the\nconstruction industry and by extension, the brick\nmanufacturing industry.
    • Growth in home improvements due to the poor\nproperty market.

    Threats

    • A further decrease in the number of home loans granted.
    • Mining strikes and labour disputes affecting the economy.
    • Rising input costs, mainly due to increasing transport and electricity prices.
    • Slow economic recovery which could further depress residential housing demand.
    • Substitution of bricks with other building materials such as timber, glass and synthetic products.
    • The government infrastructure programme not being rolled out fast enough.
    • When implemented, the carbon tax will see companies taxed on the amount of carbon they emit.

    Outlook

    According to the FNB/BER building and civil construction confidence indexes, weaker economic growth will weigh on the construction sector and the outlook is dampened going forward. South Africa\'s growth outlook has been cut from 2.1% to 1.7% and is compounded by labour unrest. A further decline in residential activity is expected. The former Minister of Finance, Pravin Gordhan, highlighted slow infrastructure roll-out as a potential risk to South Africa’s economic outlook. The passing of the Infrastructure Development Bill could alleviate some concerns as the legislation is designed to speed up and improve the implementation of infrastructure projects. Brick manufacturing companies anticipate that increased spending on infrastructure will boost the prospects for the industry and that Africa’s economic growth and infrastructure developments will ensure increasing demand for their products.

    The Manufacture of Clay and Concrete Bricks Industry in South Africa
    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2014

    Full Report

    R 1 900.00(ZAR) estimated $108.67 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 76.07 (USD)*

    Buy Now +

    Historical Reports

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2023-01-25

    R 9 500.00(ZAR) estimated $543.34 (USD)*

    View Report Add to Cart

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2019-01-17

    R 1 900.00(ZAR) estimated $108.67 (USD)*

    View Report Add to Cart

    The Manufacture of Clay and Concrete Bricks Industry in South Africa 2016-05-31

    R 1 900.00(ZAR) estimated $108.67 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Supply Chain 2
    3. SIZE OF THE INDUSTRY 2
    4. STATE OF THE INDUSTRY 4
    4.1. Local 4
    4.1.1. Corporate Actions 6
    4.1.2. Regulations & Government Programmes 7
    4.1.3. Enterprise Development and Social Economic Development 8
    4.2. Continental 9
    4.3. International 9
    5. INFLUENCING FACTORS 9
    5.1. Government Infrastructure Spend 9
    5.2. Labour 10
    5.3. Economic Environment 11
    5.4. Rising Input Costs 11
    5.5. Cyclicality 11
    5.6. Environmental Concerns 12
    5.7. Technology 13
    5.8. Information Technology 13
    6. COMPETITION 13
    6.1. Barriers to Entry and Substitute Products 14
    6.2. Research and Development (R&D) 14
    7. SWOT ANALYSIS 15
    8. OUTLOOK 15
    9. INDUSTRY ASSOCIATIONS 16
    10. REFERENCES 16
    10.1. Publications 16
    10.2. Websites 17
    ORGANOGRAM 34230A 18
    Manufacture of Clay Bricks 18
    COMPANY PROFILES 19
    AFRICAN BRICK CENTRE LTD 19
    APOLLO BRICK (PTY) LTD 22
    COROBRIK (PTY) LTD 24
    CRAMMIX (PTY) LTD 27
    GRAHAMSTOWN BRICK (PTY) LTD 29
    INFRASTRUCTURE SPECIALIST GROUP (PTY) LTD 31
    LANGKLOOF STEENWERWE (PTY) LTD 32
    MARLEY (SA) (PTY) LTD 33
    NGQURA BRICK (PTY) LTD 35
    RHEEBOK BRICK OPERATIONS (PTY) LTD 37
    WEST END CLAYBRICK (PTY) LTD 38
    ORGANOGRAM 34250A 40
    Manufacture of Concrete Bricks 40
    COMPANY PROFILES 42
    AFRIMAT LTD 42
    AVENG LTD 46
    BUILDMAX LTD 50
    CAST INDUSTRIES (PTY) LTD 52
    DERANCO BLOCKS (PTY) LTD 53
    ECHO FLOORS (PTY) LTD 54
    ECHO PRESTRESS (DURBAN) (PTY) LTD 55
    ECHO PRESTRESS (PTY) LTD 56
    GOOD HOPE BRICK (PTY) LTD 57
    INCA CONCRETE PRODUCTS (PTY) LTD 58
    INFRASTRUCTURE SPECIALIST GROUP (PTY) LTD 60
    JJ BRICKS (PTY) LTD 61
    LK BRICK & BLOCK MANUFACTURERS (PTY) LTD 62
    MARLEY (SA) (PTY) LTD 63
    NEWEE TRADING NO 2 CC 65
    SA BLOCK (PTY) LTD 66
    TOPFLOOR CONCRETE LTD 67
    WEST END CEMENT BRICKS (PTY) LTD 68

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