Who Owns Whom

tile industry south africa

The Tile Industry in South Africa 2023

Phila Rulashe | South Africa | 12 July 2023

The Tile Industry in South Africa 2019

Yasmin Mahomedy | South Africa | 25 February 2019

The Tile Industry in South Africa 2015

Brenda Young | South Africa | 09 July 2015

Enquire about this report

Report Coverage

This report on the tile industry in South Africa, including manufacture, wholesale and retail, provides information on the state of the industry and influencing factors including the pace of infrastructure development, levels of construction activity, building plans passed, retail sales trends, competition and barriers to entry. There are profiles of 20 companies including Italtile, Norcros SA, Union Tiles, Mazista and Metrotile and building materials companies such as Massmart and Spar Group.

Introduction

• The tile industry provides an important input to the building and construction sector.
• Some major players such as Italtile and Norcros SA are vertically integrated.
• Italtile’s manufacturing operation Ceramic Industries supplies more than 50% of the tiles used per annum..
• The industry benefited from an increase in home DIY activity during lockdown, but now faces low economic growth, high unemployment, increased costs of living and poor levels of gross fixed capital formation.
• Manufacturers are faced with rising energy costs and growing pressure to adopt environmentally-sustainable processes.

Strengths

• A widely distributed retail footprint across the country.
• Local company Ceramic Industries ranked among the top 25 ceramic tile producers in the world.
• Locally-available raw materials.

Weaknesses

• Continued cost of living crisis reducing customer discretionary spend.
• Negative environmental impact of tile manufacturing processes.
• Rand depreciation that increases cost of imported goods.
• Threats
• Unreliable energy supply leading to disruptions in production.

Opportunities

• Continued and intensified power cuts raising input costs and disrupting operations.
• International entrants leveraging weaknesses of rand and lower production costs.
• Ongoing global energy crisis, low economic growth and expectations of continued inflationary environment.
• Opportunities

Threats

• Eastern Cape provincial government IDZ clay beneficiation and building materials production programme.
• Housing backlog in South Africa representing potential demand.
• Implementation of increased infrastructure and housing budgets.
• New technologies to reduce negative environmental impact of tile production.

Outlook

• The outlook for the tile industry largely depends on expected construction and building activity.
• The construction industry has been in decline since 2017, and poor infrastructure delivery has further weakened the sector.
• A shortage of housing, growing middle class and extensions to RDP homes present opportunities.
• Companies are likely to face increasingly erratic and sparse power supply, increases in energy costs and reduced customer discretionary spend.
• Challenges to building activity in future include increasing energy input costs, construction mafia group disruptions and the failure of government to implement infrastructure development plans.

Read More..
The Tile Industry in South Africa 2023

Full Report

R 20 000.00(ZAR) estimated $1046.67 (USD)*

Industry Landscape

R 14 000.00(ZAR) estimated $ 732.67 (USD)*

Historical Reports

The Tile Industry in South Africa 2019-02-25

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

The Tile Industry in South Africa 2015-07-09

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 2
2.1. Industry Value Chain 3
2.2. Geographic Position 3
2.3. Size of the Industry 4
3. LOCAL 6
3.1. State of the Industry 6
3.2. Key Trends 12
3.3. Key Issues 13
3.4. Notable Players 13
3.5. Trade 15
3.6. Corporate Actions 19
3.7. Regulations 19
3.8. Enterprise Development and Social Development 20
4. AFRICA 21
5. INTERNATIONAL 24
6. INFLUENCING FACTORS 28
6.1. Unforeseen Events 28
6.2. Economic Environment 29
6.3. Labour 31
6.4. Environmental Issues 31
6.5. Technology, R&D, Innovation 32
6.6. Government Support 32
6.7. Input Costs 33
7. COMPETITIVE ENVIRONMENT 33
7.1. Competition 33
7.2. Ownership Structure of the Industry 34
7.3. Barriers to Entry 34
8. SWOT ANALYSIS 35
9. OUTLOOK 36
10. INDUSTRY ASSOCIATIONS 36
11. REFERENCES 36
11.1. Publications 36
11.2. Websites 37
APPENDIX 1 38
Summary of Notable Players 38
COMPANY PROFILES 42
Artmar Natural Stone Tiles CC 42
BMI Coverland (Pty) Ltd 44
Building Company (Pty) Ltd (The) 46
Eagle Roof Tiles (Pty) Ltd 53
Infrastructure Specialist Group (Pty) Ltd 55
Italtile Ltd 58
Malls Tiles (Pty) Ltd 62
Marley (S A) (Pty) Ltd 64
Massmart Holdings Ltd 66
Mazista Tiles (Pty) Ltd 71
Metrotile (Southern Africa) (Pty) Ltd 73
National Ceramic Industries South Africa (Pty) Ltd 74
Norcros (S A) (Pty) Ltd 76
Pavini Handcrafted Tiles (Pty) Ltd 81
Rayal Industrial (Pty) Ltd 83
Rickford Investments (Pty) Ltd 85
Ritz Tiles (Pty) Ltd 87
SPAR Group Ltd (The) 89
T Ferguson and Sons (Pty) Ltd 94
Union Tiles (Pty) Ltd 96

Introduction

This report focuses on the manufacture, wholesale and retail of tiles in South Africa. The industry, which is valued at approximately R4.5bn per annum, experienced a difficult trading environment due to poor economic conditions, restrained consumer spend and limited public and private sector investment. The construction industry, on which the tile sector is reliant, is highly dependent on government’s infrastructure plan for public buildings and housing upgrades. In 2018, government announced a decrease in infrastructure spending from R947bn in 2017/2018 to R841bn for 2018/2019.

Strengths

• Ability to source products from local suppliers to supply customer demand.
• Most major tile retailers have a nationwide footprint.

Weaknesses

• Reliant on activity in the construction and building industry on the one hand and availability of disposable income of consumers on the other.
• The manufacturing process is generally energy-intensive and not environmentally friendly.

Opportunities

• Development of web platforms for online browsing and ordering.
• Expansion into neighbouring African countries.

Threats

• Delays in the government infrastructure programme.
• Rising input costs, mainly due to increasing transport and electricity prices.
• Slow economic recovery which could further depress residential housing demand.
• When implemented, the carbon tax will see companies taxed on the amount of carbon they emit.

Outlook

Despite the South African economy recovering from recession, there are still negative factors affecting economic growth such as the VAT increase in 2018, the high cost of fuel and the volatile rand. These factors influence the cost of building and renovating which in turn impacts on the tile industry. General economic conditions and public and private sector investment need to improve to boost growth. Italtile chair Giovanni Ravazzotti said that “unless disposable income improves materially and consumers who have deferred investment in their homes in recent years return to the market, the market will remain particularly challenging.”

The Tile Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $99.43 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.60 (USD)*

Historical Reports

The Tile Industry in South Africa 2023-07-12

R 20 000.00(ZAR) estimated $1046.67 (USD)*

View Report Add to Cart

The Tile Industry in South Africa 2015-07-09

R 1 900.00(ZAR) estimated $99.43 (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 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 4
4.1. Local 4
4.1.1. Corporate Actions 6
4.1.2. Regulations 7
4.1.3. Enterprise Development and Social Economic Development 8
4.2. Continental 8
4.3. International 9
5. INFLUENCING FACTORS 10
5.1. Economic Environment and Rising Operating Costs 10
5.2. Government Infrastructure Spend 11
5.3. Building Industry Activity 11
5.4. Technology, Research and Development (R&D) and Innovation 11
5.5. Labour 12
5.6. Environmental Concerns 14
6. COMPETITION 15
6.1. Barriers to Entry 16
7. SWOT ANALYSIS 16
8. OUTLOOK 17
9. INDUSTRY ASSOCIATIONS 17
10. REFERENCES 17
10.1. Publications 17
10.2. Websites 18
APPENDIX 1 19
Summary of Notable Players 19
COMPANY PROFILES 23
ARTMAR NATURAL STONE TILES CC 23
BMI COVERLAND (PTY) LTD 25
CASHBUILD LTD 27
EAGLE ROOF TILES (PTY) LTD 37
INFRASTRUCTURE SPECIALIST GROUP (PTY) LTD 39
ITALTILE LTD 42
MALLS TILES (PTY) LTD 46
MARLEY (S A) (PTY) LTD 48
MASSBUILD (PTY) LTD 50
MAZISTA TILES (PTY) LTD 53
METROTILE (SOUTHERN AFRICA) (PTY) LTD 55
NATIONAL CERAMIC INDUSTRIES SOUTH AFRICA (PTY) LTD 56
NORCROS (S A) (PTY) LTD 58
PAVINI HANDCRAFTED TILES (PTY) LTD 61
PERSIAN TILE CC 63
RAYAL INDUSTRIAL (PTY) LTD 65
RICKFORD INVESTMENTS (PTY) LTD 66
RITZ TILES (PTY) LTD 68
SPAR GROUP LTD (THE) 70
STEINHOFF DOORS AND BUILDING MATERIALS (PTY) LTD 75
T FERGUSON AND SONS (PTY) LTD 80
TILETORIA CAPE (PTY) LTD 82
UNION TILES (PTY) LTD 84

Report Coverage

The report on the Tile industry describes the current market, outlines developments within the sector and focuses on factors influencing the success of the local industry. The report also profiles 22 South African companies, including retailer Cashbuild Ltd which owns 215 stores and employs 4,687 people, and Marley South Africa (Pty) Ltd, a manufacturer and wholesaler of tiles that employs 300 people at its four factories and seven warehouses.

Introduction

This report focuses on the manufacture, wholesale and retail of tiles in South Africa. The tile sector is a sub-sector of the construction and building materials market which has a wholesale value of approximately R97bn per annum. As far as retail is concerned, tiles form part of the hardware, paint and glass category, which is valued at approximately R58.1bn per annum. The tile industry is reliant upon the construction industry, the success of which is influenced by the roll-out of government’s R847bn infrastructure programme. The current sluggish economy and weak growth prospects mean conditions in the sector remain difficult.

Strengths

• Ability to source products from local suppliers to supply customer demand.
• Buying power of large retail companies and buyers’ groups.
• High standards with building materials being subject to the provisions of the National Regulator for Compulsory Specifications Act and the National Building Regulations and Building Standards Act.
• Most major tile retailers have a nationwide footprint.
• Wholesale model is adaptable and many wholesalers have added manufacturing and/or retail operations to their operations. The flexibility in supply gives them the ability to supply in bulk to larger customers directly from manufacturing plants.

Weaknesses

• Reliant on activity in the construction and building industry on the one hand and availability of disposable income of consumers on the other.
• The manufacturing process is generally energy-intensive and not environmentally friendly.

Opportunities

• Development of web platforms for online browsing and ordering.
• Expansion into neighbouring African countries.
• Government infrastructure spending of R847bn on various construction projects, which will support sustainable growth in the construction industry and by extension, the tile sub-sector.
• Growth in home improvements because of the current state of the property market.
• Increasing urbanisation which will result in rising demand for new residential buildings.

Threats

• Delays in the government infrastructure programme.
• Electricity supply disruptions and delays in the roll-out of Eskom’s new capacity.
• Rising input costs, mainly due to increasing transport and electricity prices.
• Slow economic recovery which could further depress residential housing demand.
• When implemented, the carbon tax will see companies taxed on the amount of carbon they emit.

Outlook

According to the latest FNB/BER building confidence index, a slowdown in the recovery of the building sector has weighed on the confidence of building contractors and manufacturers of building materials in particular. Consumer spending is still constrained and South Africa’s economic growth forecast has been revised downward throughout the year , although the IMF kept its 2% growth outlook for 2015 in its July 2015 World Economic Outlook Update. The slow roll-out of the government’s infrastructure projects is a matter of concern and the building sector and all related sub-sectors remain highly exposed by virtue of their high level of dependence on government spend. In the retail sector companies have strategies in place for growing their retail brands in previously inaccessible areas and they are focusing on improvements in the supply chain related to stock procurement and stock management which should drive efficiencies and cost containment. Although the IMF revised its 2015 growth outlook for sub-Saharan Africa to 4.4% from 4.5%, the 2016 projection remains at 5.1% and players in the tile industry are expected to increase their footprint in the region.

Read More..
The Tile Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $99.43 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.60 (USD)*

Historical Reports

The Tile Industry in South Africa 2023-07-12

R 20 000.00(ZAR) estimated $1046.67 (USD)*

View Report Add to Cart

The Tile Industry in South Africa 2019-02-25

R 1 900.00(ZAR) estimated $99.43 (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 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 10
4.1. Local 10
4.1.1. Corporate Actions 11
4.1.2. Regulations & Government programmes 12
4.1.3. Enterprise Development and Social Economic Development 13
4.2. Continental 13
4.3. International 15
5. INFLUENCING FACTORS 16
5.1. Economic Environment & Rising Input Costs 16
5.2. Government Infrastructure Spend 17
5.3. Building Industry Activity 18
5.4. Government Incentive Programmes 19
5.5. Labour 19
5.6. Cyclicality 23
5.7. Information Technology 23
5.8. Environmental Concerns 24
6. COMPETITION 25
6.1. Barriers to Entry 26
6.2. Substitute Products 26
6.3. Research and Development (R&D) and Innovation 27
7. SWOT ANALYSIS 28
8. OUTLOOK 29
9. INDUSTRY ASSOCIATIONS 29
10. REFERENCES 30
10.1. Publications 30
10.2. Websites 30
ORGANOGRAM 34230b 33
Clay & Ceramic Floor, Wall & Roofing Tiles 33
COMPANY PROFILES 34
MAZISTA TILES (PTY) LTD 34
MONIER COVERLAND (PTY) LTD 36
PERSIAN TILE CC 38
RICKFORD INVESTMENTS (PTY) LTD 40
ORGANOGRAM 34250b 42
Concrete Floor, Wall & Roofing Tiles 42
COMPANY PROFILES 43
EAGLE ROOF TILES (PTY) LTD 43
INFRASTRUCTURE SPECIALIST GROUP (PTY) LTD 45
MARLEY (SA) (PTY) LTD 48
MONIER COVERLAND (PTY) LTD 50
PAVINI TILES CC 52
UNION TILES (PTY) LTD 53
ORGANOGRAM 61430h 55
Wholesale Trade in Tiles 55
COMPANY PROFILES 56
ARTMAR NATURAL STONE TILES CC 56
ILIAD AFRICA LTD 58
INFRASTRUCTURE SPECIALIST GROUP (PTY) LTD 62
MALLS TILES (PTY) LTD 65
MARLEY (SA) (PTY) LTD 67
METROTILE (SOUTHERN AFRICA) (PTY) LTD 69
MONIER COVERLAND (PTY) LTD 70
PERSIAN TILE CC 72
RICKFORD INVESTMENTS (PTY) LTD 74
RITZ TILES (PTY) LTD 76
T FERGUSON AND SONS (PTY) LTD 78
UNION TILES (PTY) LTD 80
ORGANOGRAM 62340f 82
Retail Trade in Tiles 82
COMPANY PROFILES 83
CASHBUILD LTD 83
ILIAD AFRICA LTD 93
ITALTILE LTD 97
MALLS TILES (PTY) LTD 100
MASSBUILD (PTY) LTD 102
MAZISTA TILES (PTY) LTD 105
NORCROS SA (PTY) LTD 107
SPAR GROUP LTD (THE) 110
STEINHOFF DOORS AND BUILDING MATERIALS (PTY) LTD 116
TILETORIA CAPE (PTY) LTD 123