ILLINOIS STATE GEOLOGICAL SURVEY 3 3051 00004 2246 .1. ) ' u. . .,. ■ ,■-..• £14* (., ., 'i J ■:■";' 3,& ■' :■ i ! • . I f, — i ' ' « ,-•. 1 i 'i ' ■ •.: r * v '• I i ' t :-».„,... i- ~... , ■ ! ; '■.' ■ /,.'■.[ ?■..', "„< ' ■'{ r : ..-. '.i ■'•0'. ..o ;'' ■ *..' \ •■■ ■.. i -T ; •■ : ■■': State of Illinois Department of Registration and Education Division of the STATE GEOLOGICAL SURVEY M. M. Leighton, Chief INFORMATION CIRCULAR NO. 5 CLAY PRODUCTS INDUSTRY IN ILLINOIS IN 1932 PRELIMINARY REPORT By W. H. Voskuil April, 1933 Digitized by the Internet Archive in 2012 with funding from University of Illinois Urbana-Champaign http://archive.org/details/clayproductsindu05vosk Illinois State Geological Survey Urbana, Illinois Information Circular No. 5 April, 1933 CLAY PRODUCTS INDUSTRY IN ILLINOIS IN 1932 Preliminary Report By W. H. Voskuil Preliminary returns from manufacturers of clay products in Illinois in 1932, indicate a value of output of approximately $4, 000, 000. Returns that probably represent about 95 per cent of the production, and included in this preliminary report, give a value of $3,957,961.24. This is a severe drop from the 1931 value of #10,585,136 and is about one-tenth of the 1926 value. The lack of demand for cla.y products is of course directly related to con- ditions in the building industry. The record of building permits in two of the important markets for Illinois clay products and their relation to the demand for structural clay materials is shown in Table 1. Table 1. Value of Building Permits in Chicago and St, Lo ui s and value of clay products in Illinois, 1920-1952 (In thousands of dollars) Year Value of building permits Value of clay Chicago St. Louis products in Illinois 1920 $76,173 $17,694 $26,138 1921 125,005 16,631 19,041 1922 227,742 25,211 26,784 1923 329,604 41,444 34,219 1924 296,894 39,832 33,591 1925 360,804 54,877 36,764 1926 364,584 39,842 - 37,030 1927 352,936 42,075 34,347 1928 315,800 42,813 32,027 1929 202,287 27,331 27,391 1930 79,613 17,348 19,972 1931 44,030 16,620 10,584 1932 3,783 4,310 3,938 ' ' :: .,-— -~ — . The relation of construction to productive activity in other lines is indicated in a report of the National Bureau of Economic Research.* An analysis of the figures of production shows that products entering into "capital equipment" in 1932 to- taled but 36 per cent that of 1927, "Consumption" goods may "be divided into "durable", "semi-durable", and "non-durable." "Dur- able" goods produced in 1932 were 34 per cent of those produced in 1927, "semi-durable" were 75 per cent, and "non-durable" were 89 per cent. These figures illustrate the way in which the country has limited its purchases to commodities supplying the day-to-day needs and also the extreme elasticity in the demand for "durable" commodities. "Construction" work may be split into three classes — residences, non-residential buildings, and public works. In 1932, building of residences was only 15 per cent, non-residential build- ing was 25 per cent, and "public works" and utilities building was 52 per cent of the 1927 total. The extreme elasticity of demand for this class of product, as illustrated by these figures, has a great bearing upon the matter of employment. It is manifest that the remedy for unemployment — as distinguished from temporary re- lief — will depend upon the speed with which normal "construction" activities can be resumed. Production of principal clay products in Illinois in 1932 is shown in Table 2. Table 2. Production of Clay Products by Classes in 1952 COMMON BRICK Area Quantity Value Stocks on hand (Thousands) (Thousands) Chicago area (Lake and Cook counties) 14,597 $113,149 63,235 Northern Illinois 7,357 65,701 7,856 (Bureau, Fulton, LaSalle, Liv- ingston, and Tazewell counties) Central and western Illinois 2,265 19,607 2,058 (Henry, Sangamon, and Macon counties) East St. Louis district (Madison, Macoupin, St. Clair, and Greene counties) Eastern and Southern Illinois (Fayette, Iroquois. Saline, and Vermilion counties) TOTAL * National Bureau of Economic Research, Bull, 45 — ■■ ■ — — ..■■ M l . , . .. — .■^■^ , ■» f li WH rt.» i. .» .. .^«ir' »- '' :il »i » | i. L. .ii..i - .■ .. . r ■ | ,.» ■■■ ■ -2- 4,753 55,372 2,799 2,409 ■* 21,062 3,435 31 , 381 §274,891 79,383 1 ■ ■ X ■'■■ 7Ci..< ■ • .. . . i.. :~:r.'.x&-m'zz.T*sr~ :: 1 L Table 2 (continued) OTHER PRODUCTS (Entire State) Quantity Value Stocks December 31 Face brick, thousands Hollow building tile, tons Vitrified brick, thousands Paving Other Drain tile (tons) Other clay products* Pottery TOTAL 25,406 $328,474.00 36 f 649 116,502*31 25,137 5,689 18,533 496,500*30 62,868.96 83,147.65 772,155.19 1,812,792.83 $3,9377951.24 46,757 50,580 10,302 7,993 123,190 * Fireclay products, terra cotta, refractory cement, raw clay, silica brick, cement, hollow brick, sewer pipe, wall coping, flue lining, chimney pipe, enameled brick, haydite, etc. The present status of the clay products industry, espe- cially that of structural clay products Y/hose output has decreased most, must be examined in the light of statistics of production, shipments, and stocks of material on hand. For this purpose the data on production and stocks, gathered by the State Geological Sur- vey, and the monthly shipments from a group of selected plants re- porting to the U. S. Department of Commerce, are compared. Thus in 1932, 47 plants produced 31,381,000 common bricks, and stocks on hand as of December 31, 1932, were 79,383,000. An average of 34 representative plants shipped a total of 56,452,000 common bricks, and stocks declined from 107,533,000 in December, 1931, to 69,778,000 at the end of December, 1932, (Table 3). Face brick in- ventories decreased only slightly, as indicated from the reports of 16 representative plants in December, 1931, and of 17 plants in December, 1932. Evidently more than a year's supply of finished materials is on hand at the existing rate of market demand but stocks would not be excessive if moderate building activity were resumed. Structural Clay Products: Monthly release from Bureau of the Census, Department of Commerce, Washington, D, C. «*3*- . -. »„- t * u. rUT-* " h -- *"l * ' Table 3. Summary of Structural Clay Products I ndustry in 1932 Common Brick Face Brick (Thousands) (Thousands) Hollow building tile (Tons) Production Shipments, 1932 31,381 (47 plants) 25,406 (22 plants) 40 , 494 (28 producers) 56,452 32,633 30,999 (34 producers) (19 producers) (16 producers) Stocks, Dec, 31, 1931 107,533 Stocks, Dec. 31, 1932 69,778 Decrease -37,755 Stocks as reported by all producers 78 $ 778 41,866 40,028 -1 , 838 45,182 73,053 45,282 -27,771 50,580 Immediate problems of the structural clay products industries The problems of the brick industry from 1920 to 1926 were those of production. Building activities and the demand for struc- tural clay products were expanding at a rapid rate. The building peak of 1926-27, however, was followed by a period of decline that shifted the problem from one of production to one of distribution and marketing. The immediate problem is the readjustment of pro- duction and stocks into closer coordination with actual market demand. The figures &f shipments and stocks for 1932, together with the general figures for clay products output and building activity from 1920 to 1932, may be regarded as a statistical barometer of the market condition and the relation of the producers to the market. Inventories need to be still further decreased if production is to be economical. The dollars-and-cents value of keeping inventories close to market demand may be illustrated as follows, using the 1932 figures of the 34 companies reporting on manufacture of common bricks: If a price of $8.00 per thousand at the yard is assumed, the stock rn December 31, 1931 (107,533,000 bricks j , was worth 107,533 x $8 or $860,264, the annual interest charge on which, at 6 per cent, would be $51,616. A year later when stocks were re- duced to 69,778,000 bricks, the value was $558,224, a decrease of $302,040, and the interest charges would be $33,493 or a decrease of $18,123 for the group of producers. -4- \ K •".'• f ■ • - -■•■-■ Control of production for the purpose of maintaining in- ventories at a moderate level, however, requires a further refine- ment of statistical reports to cover separately each important marketing district, if a producer is to have an accurate picture of conditions of supply and demand in his particular locality. In Illinois, for example, certain more or less well defined market districts, such as the Chicago area, the St. Louis district, the Peoria market, the Springfield market , and the Danville market ought to have statistics of both shipments and production separate- ly tabulated and reported. For such districts as Chicago and St. Louis, where the market is supplied by several brick plants in adjoining states, it would be helpful if total statistics of production and shipments in the local market were collected by a local manufacturers' organ- ization and the data made available to each of the members. 1929 In the St. Louis district, for example, there- were in/18 clay products plants in St. Louis city and county and 13 in the counties comprising the St. Louis district in Illinois. To get a complete picture of the statistical position of the industry in this local market, total monthly production and inventory statis- tics of all plants should be available by cooperative agreement among the manufacturers in this area. By no other means can the costly policy of piling up inventories be curtailed and brought under control. Future Problems of the Brick Industry Apart from the immediate problem of inventory control, the structural clay products industries are facing certain chang- ing conditions in the building industry which must be anticipated and carefully studied so that the proper readjustments can be made within the industry to meet the new outlook and the new needs. Although an accurate or detailed forecast cannot be made, nevertheless certain trends are discernible and serve as guide posts to the characteristics of building activity in the coming decade. Among the items to be considered are: (1) Trends of construction in major classes of buildings, i.e., residential, public, industrial, office, etc.; (2) changes in building construction which will require new types of materials. (3) new materials needed to meet the modern demands for comfort and convenience in buildings, especially in residences. The next decade will probably witness the greatest activ- ity in the residential building class « The market for other classes of buildings such as office buildings, industrial plants, and public buildings is either saturated or in excess of needs for -5- GV;:fl ■ ...-. ; L'JH • n : i ■ iUi.-. - U .'. ' i" - : X '. JU ■ ■. ■ - ■ — the present and immediate future. Two factors, however, indicate the need of more active residential construction with the return of more prosperous conditions. They are (1) obsolescence of present structures, and (2) the movement of population away from congested metropolitan areas and the need to provide new residences in suburban areas and in smaller cities. The brick industry must also take cognizance of the fact that the trend is toward lower cost residences. With the decline of lumber supply becoming apparent, the opportunity for filling the low-cost house market is open to brick manufacturers if reduc- tion in the cost of financing and censtructing a house can be ac- complished. No other material has been offered that has conclusive- ly demonstrated the possibility of building a low-cost house al- though sheet-steel manufacturers have attempted to do so. Clay products such as light weight bricks, perous brick, nail block, brick panels, and brick veneer have been designed to meet the problem of lower cost but it is still too early to determine their usefulness and acceptability by the public. Clay products manu- facturers cannot, however, afford to relax their efforts in finding a means for the practical solution of this problem. The use of steel frame work, made either from rolled structural shapes or tubular pieces, welded into a frame, and en- closed with structural clay products seems to be gaining favor as a type of building possessing durability and absence of shrinkage and being proof against fire and against vermin accumulation. Cooperation between brick manufacturers and builders is essential in solving the structural problem in the design of a building of this type. Activity in the- design and testing of reinforced brick structures in 1931 and 1932 has demonstrated the practicalness and economy of this type of masonry for various kinds of construction. This opens for brick utilization a field which has hitherto been occupied by other materials and every effort should be made to pre- sent the merits of this type of construction to the building indus- try. New materials which add te the comfort and cleanliness of a house such as insulating materials, glass or porcelain enamel for interior finishing, tile for flooring, and sound-proofing materials are receiving more critical attention than hitherto and their rela- tion to structural clay products demands further study. The posi- tion that brick is to occupy in the building activities of the next decade will be affected to a considerable degree by foresight in anticipating the developments of the immediate future. -6- 1 "' -j :,Yi /it • -; X.V-XO& ; Table 4. 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