The Economics Of The Brick Cycle and Its Effects on Firm and Industry Structure

Home and Abstract Introduction Brick Demand UK House Construction

The Economics of Brick Production

Increasing Concentration of the Brick Industry II III IV V VI VII VIII IX

Conclusions Brick Industry Other Cyclical industries -Christmas trees

  Increasing Market Concentration within the UK Brick Industry

INCREASING MARKET CONCENTRATION WITHIN THE BRICK INDUSTRY

 

    • Evidence

    Table 4.1. Total market, market shares, firm and yard numbers.

Year

Total

Deliveries(M)

Flettons % of total

LBC % Flettons

LBC % Total
Next 4 largest % Total
No. of Yards
No. of Firms
1938
6,939
1147
1950
5,928
34.3
70.2
24.1
16
1955
7,204
37.5
69.7
26.2
18
1960
7,332
40.4
68.9
27.8
21
1965
7,424
41.7
69.8
29.1
22
1966
6,729
42.7
71.8
30.7
22
1967
7,701
42
70.8
29.8
23
1968
7,221
42.8
72.6
31.1
23
1969
6,481
42.5
86.7
36.8
23
544
1970
6,356
43.2
84.1
36.3
24
1971
6,825
43.7
92.7
40.5
26
1972
7,023
43
95.4
41
26
1973
6,998
43.1
95.6
41.2
27
357
156
1974
5,011
40.7
100
40.9
29.3
153
1975
5,467
41.7
100
41.7
28
144
1976
5,380
42.1
100
42.1
27
128
1977
4,718
41.3
100
41.3
27.5
116
1978
5,107
43.1
100
43.1
27
111
1979
4,909
41.9
100
41.9
26
100
1980
4,046
38.3
100
38.3
26.5
90
1981
3,566
39.0
100
39.0
24
89
1982
3,761
37.0
100
37.0
25
243
86

Sources: M & MC. Building Bricks. 1976. P. 10-11.

M & MC, LBC and Ibstock Johnsen. 1983. P 11.

DOE. Building and Construction Statistics. 1979, 1983.

Since the war, the brick industry has seen increases in market concentration, with the share of the 5 largest firms increasing from 42.1% to 62.0% in 1982. However, this 1982 market share probably understates the 5 largest downtrends in brick demand, larger firms suffer more than smaller, specialist producers who are more able to hold their levels of production stable.

 

 

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