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U.S. demand for bricks, blocks, pavers to approach $9 billion in 2018

Words: Corinne DumaisDemand for bricks, blocks and pavers in the United States is forecast to rise 8.8 percent per annum from a low 2013 base to $8.9 billion in 2018. A recovery in construction expenditures across all market segments will be the primary driver of gains as the brick, block and paver market continues its improvement from declines related to the 2006 collapse of residential construction and subsequent economic recession. Rebounding new housing construction will have a particularly significant impact on demand growth. These and other trends are presented in Bricks, Blocks & Pavers, a new study from The Freedonia Group, Inc., a Cleveland-based market research firm.

“Bricks, typically made of clay, will see the most rapid growth of any product, driven by the expected robust increases in new housing construction,” forecasts analyst Mariel Behnke. Brick is used primarily as a siding material on residential buildings, most intensively in the single-family segment. After suffering steep declines following the 2006 collapse in housing construction, demand for brick remained low in 2013. Through 2018, demand is projected to rise 11 percent annually to $2.6 billion.

Demand for structural blocks is concentrated in nonresidential markets, where they are used both in foundations and in above-grade walls. Although residential buildings do not use structural block as intensively, foundations in such buildings represent a second important market for structural block. Spending on structural block is projected to reach $3.7 billion in 2018 on 7.9 percent annual growth, driven by rebounding building construction expenditures. Competition from other materials such as poured concrete foundations will prevent stronger advances.

Pavers and outdoor wall block are used in various hardscaping applications. Many buildings use retaining walls to support earth or part of the weight of structures in areas where sloped land presents a danger of erosion. Increasing interest in aesthetically pleasing features such as terraced landscaping and paver patios and walks will continue to support demand for hardscaping products across many markets. Interest in “green” building materials such as permeable pavers or products made from recycled plastics will also support sales. Demand for pavers and outdoor wall block is concentrated in improvements and repairs, particularly in the residential market; consequently, sales of these products will not be boosted by rebounding new building construction and growth will not be as robust as that for brick.

Bricks, Blocks & Pavers (published 11/2014, 277 pages) is available for $5,200 from The Freedonia Group, Inc. Information may also be obtained through www.freedoniagroup.com.
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