Clay Product & Refractory Manufacturers NAICS 3271

May 20, 2025 - Rising Wholesale Power Prices

• Wholesale power prices are forecast to rise across most US regional markets this year, with the biggest jumps – projected at between 30% to 35% – expected for the Southwest and California, according to the US Energy Information Administration. However, solar power projects in Texas and hydropower in the Northwest are expected to grow their power supplies keeping a lid on prices, according to the EIA. Wholesale power prices could average $40 per megawatt hour in 2025, an increase of 7% over 2024, according to the agency. The cost of natural gas – the single biggest fuel source for US power generation – delivered to power plants is expected to average $3.37 per million British thermal units this year, a 24% jump from last year, but roughly equal to 2023, per the EIA. As large users of electricity, clay product and refractory manufacturers are sensitive to increases in electricity prices.
• Tariff and housing cost concerns are causing confidence among US home builders to decline, the National Association of Home Builders reports. Builder confidence in the market for newly built single-family homes measured 42 in February, down five points from January and the lowest level in five months, according to the NAHB/Wells Fargo Housing Market Index (HMI) released on February 18. “Uncertainty on the tariff front helped push builders’ expectations for future sales volume down to the lowest level since December 2023,” said said NAHB Chairman Carl Harris, adding “Incentive use may also be weakening as a sales strategy as elevated interest rates reduce the pool of eligible home buyers.” New home construction drives demand for sanitary products such as sinks and toilets, brick, roofing and flooring tiles, whitewares, and other products produced by the industry.

• The devastating loss of life and property caused by the January wildfires in Los Angeles is drawing attention to fire-resistant building materials. Materials including brick, concrete, and steel are designed to withstand high temperatures and resist ignition, reducing the risk of fire damage and increasing safety. ”Brick is a safer building material than others for a very simple reason,” according to brickmaker and distributor Acme Brick. “With its main component being clay, brick can withstand heat over 2,000 degrees Fahrenheit, depending on its composition and purpose. Brick is classified as a non-combustible material, meaning it can serve to both resist and contain fire.” Fire testing performed at the National Brick Research Center found that brick, on average, provides 1.5 hours of protection before a fire breaches a home, compared to less than 30 minutes for vinyl and fiber-cement siding.
• Employment by clay product and refractory manufacturers shrank 1.2% in March compared to a year ago, while average wages at nonmetallic mineral product manufacturers rose 6.5% year over year in April to a new high of $28.29 per hour, according to the latest US Bureau of Labor Statistics data. Residential construction spending – a driver of demand for brick and tile building materials and sanitary porcelain – ticked up 0.8% YoY in February and rose 1.5% versus January, according to the Census Bureau. Construction spending for single-family homes is forecast to rise 3% this year, down from 7% growth in 2024, according to FMI’s second-quarter 2025 North American Engineering and Construction Outlook.