Import competition and product substitution are threatening industry players
Melbourne, Australia (PRWEB) December 11, 2012
The Ceramic Tile and Pipe Manufacturing industry is a small player in the global tile market and is one of the smallest of the Australian building product manufacturing industries. The industry has undergone substantial rationalisation since the 1980s. According to IBISWorld industry analyst Anthony Kelly, “ceramic pipe manufacturing has nearly disappeared, while ceramic tile manufacturing operations have endured substantial restructuring involving the exit of several leading players, staff cuts, production cost reductions and productivity improvements”. The top four players in the industry in 2012-13 are expected to be National Ceramic Industries Australia Pty Ltd, CSR Limited, Boral Limited and Brickworks Ltd.
The Ceramic Tile and Pipe Manufacturing industry’s revenue is forecast to total $85 million in 2012-13, representing a dramatic slump by an annualised 5.9% over the past five years. “Industry sales have been affected by adverse trends in the housing and commercial building markets, the deterioration in competitiveness against low-cost imports and the substitution of non-ceramic building materials”, says Kelly.
Imports of industry products capture the majority of domestic demand, and the industry exports a small share of its production. Domestic demand is expected to fall over the five years through 2012-13, corresponding with a downward trend in the value of total building construction and particularly a slump in the number of single unit housing commencements, which is the primary market for terracotta roof tiles. The industry's performance is forecast to improve over the next five years, in line with the return of investment into the housing and commercial building markets. Domestic demand and the volume of production are also expected to increase.
For more information, visit IBISWorld’s Ceramic Tile and Pipe Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry manufacture ceramic tiles (including vitreous china or porcelain tiles), ceramic pipes or other ceramic construction goods.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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