Substitute products such as concrete, steel and fibre cement have threatened demand for clay bricks over the past five years.
Melbourne, Australia (PRWEB) November 26, 2014
Clay bricks are the major cladding material for houses in Australia. The performance of operators in the Clay Brick Manufacturing industry in Australia is therefore heavily influenced by trends in new housing investment. According to IBISWorld industry analyst Anthony Kelly, “the industry's performance has also been influenced by the long-term trends in housing type, away from the traditional brick-intensive single-unit housing and towards multi-unit apartments, which often use alternative cladding materials such as concrete and steel.” Within the traditional housing market, clay bricks are coming also under intense pressure from substitute products – notably, fibre cement and polyurethane cladding, which are widely used on the upper storeys of new houses.
The industry is projected to generate revenue totalling $830.0 million in 2014-15, up 3.8% from the previous year on the back of an upswing of investment into new housing construction. Despite this growth, industry revenue is projected to decline by an annualised 3.6% over the five years through 2014-15. “Demand for clay bricks and pavers has been contained by weak trends in total housing construction and declining bricks used per unit of construction,” says Kelly. The total volume of clay brick production is projected to decline by an annualised 0.4% over the five years through 2014-15, to 1.47 billion standard brick equivalents (SBEs).
The Clay Brick Manufacturing industry exhibits a high level of market share concentration. Major players include Brickworks Ltd, Boral Limited and CSR Limited. The industry comprises about 50 brick plants operated by 20 firms, although this includes several very small regional brickworks servicing niche building markets. Substantial restructuring has occurred over the past few decades, involving the consolidation of ownership, plant rationalisation and the introduction of labour-replacing production technology. Clay brick production is projected to average flat growth over the next five years (0.0% annualised).
For more information, visit IBISWorld’s Clay Brick Manufacturing industry in Australia report page.
Firms in this industry manufacture clay pavers and bricks (excluding refractory bricks).
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