Start a Сoncrete Block Making Business

Despite difficult economic conditions in our country, the South African construction sector is still growing. There are large buildings and houses being built in many of SA’s large cities. And most will need bricks to build with.

In this two part series I will look at making concrete blocks (also known as cinder blocks) and clay bricks. A concrete block business has a lower startup cost, lower margins and more competition, a clay brick business is more expensive to start, but has higher margins and has less competition.

Opportunity Overview
Starting your own construction company and growing it requires a lot of money and skill, but you can apply a different approach, which is making and selling building materials. Here are some ideas:

Moreover, all of the above businesses can be expanded by supplying other materials like sand, stone and cement.

The concrete building block making business

Getting Started
The great thing about this business is that it can be very profitable. The problem is that type of scale requires a bit of capital: space (both for manufacturing and storage), labour, raw materials, machinery, delivery vehicles, site security etc. Yes it can be started small but then you must maybe start with a niche block like interlocking blocks where competition is less and profit is higher per block.

Business Model
This business makes and sells concrete blocks, usually to the building industry. This product is often made using older, less expensive manual methods compared to the modern mechanised way that clay bricks are manufactured.

Here is a video on how concrete blocks are made

Cement Bricks Manufacturing | MAKING OF BRICKS google plus OFFICIAL WEB SITE India,

As you can see you need a concrete block making machine, a cement mixer and lots of space, but you can start smaller with moulds, and mix the concrete manually.

Where you start depends on how much capital you have. If you have the capital you can buy a machine with built in raw material feeder, pan/cement/concrete mixer and conveyor belt. There is also a somewhat in between way: buy the block making machine and concrete mixer separately, that should be your minimum goal. As starting manually is really hard, but if there is no other way then you have to do just that.

Target Market
These blocks are mainly used in residential and small business building. It is particularly popular in lower income areas. You will essentially have two types of clients:
1) Small construction companies building private houses.
2) Ordinary DIY people who will use it for their own needs (building renovation etc.).

Business Model Manufacturing
Equipment Block making machine, moulds
Materials Concrete (cement, sand, stone)
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Industry Building & Construction

Image credit: homedepot