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

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. The construction sector’s contribution to GDP has declined for several years. Clay brick manufacturers fared a bit better than concrete manufacturers in the past year due to increased activity in the residential building sector. 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.

Opportunities

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

Outlook

Despite the delay in civil infrastructure development, declining construction industry revenue and higher construction material costs, construction activity is gradually recovering. 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. The construction industry is expected to stabilise at 3% per annum from 2023 to 2026. 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. 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.

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.

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.