Town of Cochrane Strategic Plan – Final Report October 2014
Appendix F: Preliminary Analysis of the Brick Manufacturing Business
Currently, there are nine companies manufacturing bricks in Canada. They supply 99% of the
bricks used in this country.
In 2011, manufacturing costs in the brick industry were dominated by the costs of materials and
supplies. These increased from $287.4 million in 2004 to $361.3M in 2011, more than 3.3% per
year. In 2011 production wage costs reached $138M while energy, water and vehicle fuel costs
were $29.9M. The cost of energy, water and vehicle fuel increased from $20.8M in 2004 to $29.9
million in 2011, or at an average rate of 5.3% per year.
The clay brick manufacturing market is affected by the construction and housing markets in both
Canada and the US. An independent research report from The Freedonia Group Inc. (US) in 2009
projected an increased demand for brick and block products by approximately 12% to 12.4 billion
units in 2014, valued at $8 billion. The expected recovery in building construction, specifically
residential construction, was expected to continue to drive growth in the brick manufacturing
industry, as consumption of clay brick products tends to be concentrated in residential markets,
reflecting the heavy use of clay brick as a siding material in new home construction. In 2009,
demand for clay brick was very low due to the ongoing severe contraction in new housing
construction.152
Industry Requirements
In addition to large clay deposits, brick manufacturing plants rely on a stable and plentiful heat
source for firing, as well effective transportation of the finished product to suppliers.
Traditionally, the primary heat source for firing clay brick in periodic kilns is fossil fuel, although
other sources such as coal and sawdust are also used. A periodic kiln is a permanent brick
structure with a number of fire holes through which fuel enters the furnace. Hot gases from the fuel
are first drawn up over the bricks, then down through them by underground flues, and then out of
the kiln to the stack. In all kilns, firing takes place in six steps: evaporation of free water,
dehydration, oxidation, vitrification, flashing, and cooling. For most types of brick, the entire
drying, firing, and cooling process takes between 20 and 50 hours.153
Given Cochrane’s location, freight transportation via rail would be most efficient, and provide a
strong competitive advantage based on location. The Ontario Northland Transportation
Commission offers rail freight service to businesses which includes mineral and forest products,
chemicals, petroleum, and other products to and from Northeastern Ontario and Northwestern
Quebec. This rail freight service also interconnects with other rail services including the Canadian
152
“U.S. Brick & Block Demand to Reach 12.4 Billion Units in 2014”, Ceramic Industry News Online, September 24,
2010. Available at: http://tinyurl.com/le8xo4l
153
Brick and Structural Clay Product Manufacturing. United States Environmental Protection Agency. Available at:
http://www.epa.gov/ttnchie1/ap42/ch11/final/c11s03.pdf
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