Corobrik satisfied with performance

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"Despite these destabilising factors and the constrained macro-economic fundamentals the building industry is bouncing up off its fairly low levels. Overall we see prospects improving buoyed by government spending on infrastructure raising expectations that 2014 will be a better year than 2013," Meyer said.

"Architects are reportedly busier than previously and the qualitative and quantitative indicators show a general recovery in the building industry. The number of ccommercial buildings plans being passed appears on a gradual upward trend and government spending on low cost housing and new or extended schools is also picking up."

Residential market

Meyer said that the middle and upper end of the residential market was also on a slight upward trend with property prices recovering. "The middle end of the residential market is slowly coming back off its low base and there has been small growth in home improvements." Demand for Corobrik's products is increasing in Eastern, Central and Western Africa, spurred by infrastructural development in these regions.

"After three years of intensive product development with impressive market share gains, our focus will be on consolidation and reinvestment in the business during 2014," Meyer continued. "Capital has been committed to a number of planned projects to upgrade facilities, drive efficiencies and introduce robotics to automate brick handling systems.

"Corobrik will also invest in further research to understand the comparative value of our clay products as produced and in application, towards minimising environmental impacts and energy usage of buildings. Importantly through our involvement with the Clay Brick Association we will be involved with the full lifecycle assessment commissioned with the University of Pretoria," Meyer said.

Conversion of factories

"Our research to date, supported by eight years of empirical studies of building modules under real world conditions at the University of Newcastle, provides clear evidence that we are in good space and that double skin cavity clay face brick walls with appropriate resistance in compliance with SANS 204 Energy Standards offers superior thermal performance with lowest life cycle costs here in South Africa," he said.

Corobrik is eager to continue converting more factories from coal-fired to gas-fired operations - in addition to its more recent Lawley and Driefontein factory conversions - and there are several other viable options for conversion but there is no gas available.

"We have engaged Sasol on a number of occasions to request additional gas supplies but it appears they are using all the gas for their own operations," Meyer said. "This is a setback but has not slowed our determination to reduce our carbon footprint. Our focus next year will be to dematerialise our products and processes further while achieving the same high quality products with improved functionality."

ISO accreditation

Two more of Corobrik's 15 factories were awarded ISO 9001:2008 quality management systems accreditation in 2013, bringing the total number to eight. It is expected that five more factories will receive accreditation in 2014 with the balance reaching this standard in early 2015. The roll-out to attain SANS 14 001 Environmental Management System accreditation at all operations continues. To date five factories have reached this goal, with a further two expected next year.

The company has reaped significant benefits from its employee stock ownership plan (ESOP) introduced in 2008. A total of 26% of the business is now owned by employees. "We have been led to believe it is one of the more successful ESOP schemes around," Meyer said. "Most notable has been the change in the attitude and behaviour of staff towards the business - from the shop floor to director level - which is a huge advantage both for internal productivity and growth."

Meyer believes that lack of artisan training is a national issue which needs serious attention. "Everyone thinks it is someone else's responsibility but we need to train more artisans. Corobrik offers internships at all of its factories for members of the local community as well as traditional artisan apprenticeships for fitters, turners, millwrights and electricians. At a product level we operate two CETA accredited Building Training Schools to train bricklayers and paver layers," he concluded.