Clay Product & Refractory Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 860 clay product and refractory manufacturers in the US produce structural products, refractories, whitewares, and technical or engineered goods. Structural products include brick, roofing tiles, pipes, and flooring tiles. Refractories are made to withstand high temperatures - over 1,000 degrees - and include fireplace liner bricks, kiln and forge lining materials, crucibles for metal and glass melting, and gas burner components. Whitewares tend to be more delicate and include dishes, china, wall tiles, lamp bases, statuary, pottery, and sanitary porcelain (sinks, toilets, and urinals). Technical or engineered products include ceramic disk brakes, ballistic protection, biomedical implants, mechanical bearings, and missile nose cones.
Competition from Alternative Materials
Manufacturers of clay products compete for market share against manufacturers making similar products from alternative materials.
Volatile Energy Costs
Clay product and refractory manufacturers have high energy expenses because materials are baked or fired to obtain their rigid form.
Industry size & Structure
A typical clay product and refractory manufacturer operates out of 1-2 locations, employs 41-42 workers, and generates about $10 million annually.
- The clay product and refractory manufacturing industry consists of about 860 companies which employ about 35,800 workers and generate about $8.9 billion annually.
- Pottery, ceramics, and plumbing fixture manufacturers represent 60% of firms but employ just 35% of workers and generate 31% of industry revenue. Clay building materials and refractory product manufacturers represent 40% of firms and employ 65% of workers and generate 69% of industry revenue.
- Customer industries include building materials distributors, construction firms, utilities (water/sewer/power), oil and gas producers, government (military/law enforcement), hardware and home improvement stores, electrical supplies distributors, electronic component manufacturers, home furnishings wholesalers and retailers, foodservice providers (restaurants, caterers, hotels), kiln manufacturers, and manufacturers of products that requiring kiln-firing or extremely high temperature to cure.
- Large companies include General Shale Brick, Corning, Lenox, CoorsTek, Ortech Ceramics, American Standard, and Mohawk Industries (Daltile, Marazzi).
- The industry is concentrated with the 20 largest firms representing about 52% of industry revenue.
Industry Forecast
Clay Product & Refractory Manufacturers Industry Growth
Recent Developments
Nov 20, 2024 - Prices, Wages Ease From Recent Highs
- Producer prices for clay product and refractory manufacturers rose 1.4% in September compared to a year ago after rising 3.8% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. The rate of increase in industry producer prices, which had been steep since mid-2021, has slowed over the past year. Industry employment was unchanged in September year over year, while average wages at nonmetallic mineral product manufacturers rose 4.1% YoY in October to $27.26 per hour, BLS data show. The industry’s producer price index and average wage both dipped from the previous month’s record high.
- Shop floor injuries needn’t be serious to be costly. In its 2024 Injury Impact Report, the insurer The Travelers Companies found the most common workplace accidents accounted for the majority of claim costs. The most frequent causes of injury identified in the report included overexertion (29% of claims analyzed); slips, trips, and falls (23%); being struck by an object (12%). Those injuries were also the top drivers of severe claims, defined as $250,000 or more. Slips, trips, and falls, which include falls from height, topped that list. Injuries related to overexertion can result in extended absences with injuries like dislocations having the highest number of average lost-time days at 142 days, followed by fractures (92 days), and inflammation (85 days). Improving shop floor ergonomics, eliminating trip/fall hazards, and material handling mishaps are three areas manufacturers can focus on to reduce injuries and time lost.
- As rising temperatures make it more difficult to cool factory floors, companies are turning to new technologies to protect workers, The Wall Street Journal reports. According to the nonprofit Public Citizen, over 13 million US workers are exposed to extreme heat. To protect employees from heat stress and dehydration and keep them on the job, some companies are adopting mobile apps, wearable devices, apparel made with cooling fabrics, and machines that distribute cool air indoors more effectively, according to WSJ. Beyond traditional air conditions that cool and dehumidify the air, GE Appliances has installed high-tech air handlers at several plants. The new air handlers, manufactured by Trane Technologies and deployed in several locations on the factory floor, distribute the air more evenly and powerfully. Hiring and retention “dramatically improved” after the air handlers were installed, says GE Appliances’ VP of supply chain Bill Good.
- The increasing frequency and severity of hailstorms in the Great Plains and other hail-prone regions are hampering the installation of solar panels and the US’s embrace of solar energy, The American Ceramics Society (ACS) reports. Research demonstrates that using thicker front glass panels improves the resistance of photovoltaic modules to hail damage. A study found that while front glass panels with a standard thickness of 3.2 mm couldn’t withstand the impact of larger hailstones, 4-mm-thick panels were effective in reducing or nullifying hail damage. However, the recent trend in solar panel manufacturing is to make the glass thinner, increasing spontaneous glass breakage even under normal conditions. Thinner glass panels fail more often than standard or thicker panels because they cannot be fully tempered, explains ACS. Growing awareness among manufacturers regarding the drawbacks of thinner glass is driving a trend back toward thicker PV glass panels.
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