Brick factory as a business

Business ideas by directions

Growing volumes of private housing construction require a constant supply of building materials to the market. Despite the availability of goods, for buyers, the price and quality of the purchased products often play a huge role.

Therefore, creating your own business on the basis of a brick factory, both before and now, can be considered as an excellent option for beginner entrepreneurs. Of course, like most other enterprises, opening a brick factory requires certain investments, but they are not so great when compared with many other areas.
For the success of a brick factory as a business, it is extremely important to be sure that there is a demand for the products produced.
Supply and demand are often very unevenly distributed across regions. In some places, the availability of the product on offer greatly exceeds the demand for it. This usually happens in areas where there are large brick factories built in the past, or other materials are used to build residential buildings. In other regions, on the contrary, demand significantly exceeds supply, since houses are traditionally built of brick, and finished products have to be imported from other regions, which increases their cost.

Therefore, before opening a brick factory, it is necessary to conduct marketing research, make the necessary calculations of the profitability of the future enterprise.
An important condition for the creation of a brick factory is the availability of raw materials for the manufacture of bricks.
It should be noted that brick production technologies differ significantly from each other. Ceramic bricks are produced by firing, clay is used as a raw material. Another technology uses the plastic molding method, but the profitability of such enterprises is very dependent on the volume of production.

For start-up entrepreneurs, the production of ceramic bricks by firing is a simpler and cheaper traditional technology, which makes it possible to achieve profitability even with a small turnover of 400 to 500 thousand bricks per year.

However, it should be taken into account that in order to organize such production, it is necessary to have clay deposits nearby, which can be mined in an open way. Experience shows that it is desirable to locate such a deposit at a distance of no more than 20 km from production, since the cost of transportation can reduce the profitability of the enterprise to zero.
When planning costs, it must be taken into account that in order to develop a clay deposit, it will be necessary to obtain a license, which can be quite expensive.
The technology for the production of bricks by firing is quite simple. Clay and additional components in the form of sand, fine gravel, are strongly mixed with the addition of water. After that, blanks are formed from raw materials using a press, which are then cut into bricks and sent to a drying oven. The finished brick after firing is packed or stacked on pallets.

For the production of bricks, you can buy separate equipment, but it is better to purchase a ready-made production line, which will cost from 250 to 500 thousand dollars. The kiln is usually powered by gas or electricity, although in some places such kilns still run on coal.

When calculating the initial costs, it is necessary to take into account the costs of gasification of the furnace. For the operation of a small brick mini-factory, a staff of 10-12 people is sufficient.

Operating costs, other than wages and land rent, include utility bills, the cost of purchasing gas or coal for the kiln, transportation costs, and fees for the industrial use of clay.

The profitability of a brick factory, subject to the development of its own source of raw materials, ranges from 20 to 30%. This allows you to recoup the initial investment within two to three years.

However , it is better to entrust more accurate profitability calculations and a ready-made brick factory business plan to specialists, whose services you can order on our website.