Feasibility Study of a proposed Structural Clay Products Industry in Redevelopment Area A, Northwest Florida ras f fft Sv , U.S. DEPARTMENT OF COMMERCE /Area Redevelopment Administration Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://www.archive.org/details/feasibilitystudyOOgeor . FEASIBILITY STUDY OF A PROPOSED STRUCTURAL CLAY PRODUCTS INDUSTRY IN REDEVELOPMENT AREA A, NORTHWEST FLORIDA By George Aase and Associates, Inc Tallahassee, Florida For U.S. DEPARTMENT OF COMMERCE John T. Connor, Secretary Area Redevelopment Administration William L. Batt, Jr., Administrator February 1965 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price 4-5 cents FOREWORD The basic responsibility of the Area Redevelopment Administration of the U.S. Department of Commerce is to help revitalize the economies of American communities suffering from chronic unemployment and underemployment. One way of assisting a community is to determine the kinds and the magnitudes of its economic problems and the possible solutions. ARA helps do this through its Technical Assistance program. This publication is a product of a technical assistance contract with George Aase and Associates, Inc., Tallahassee, Florida. The study surveys the presence of clay deposits in the western part of Florida, and suggests that they are of sufficient quality to justify a plant to process bricks and other clay products. The con- clusions and recommendations have general, broader applicability to any area which has deposits of clay suitable for a clay products industry. William L. Batt, Jr., Administrator Area Redevelopment Administration FEASIBILITY STUDY OF A PROPOSED STRUCTURAL CLAY PRODUCTS INDUSTRY IN REDEVELOPMENT AREA A, NORTHWEST FLORIDA Table of Contents jUmiTldr'y « oo6»oeeoeeeoe9«9»oaoaoeo«»»e»»».»«.«.oe» VI 1 GENERAL INTRODUCTION nUtnOriZdtlOn a...... a. .»«.a«««..e«se. .........a. J- fHT > Q3. Ot OLUCly»»o«»9ee«»9«»oe90»co.»»».«»«>.»»»9». -L PUrpOSe OX oTUQy .«8e«aeaaeae.e.«.e««*«.. .....a.. J. bCOpG Ol b LUQy ...a.a.eaaaeaeaaa.a. ..........a... / PART I - MARKET ANALYSIS Characteristics, Types and Uses of Structural Clay Products «... U Production and Use of Structural Clay Products in the United States. ... .««««««e..«» Regional Production and Marketing LndrdC LSrlS llCS ss.eeeaeaoaeaea.aaaaa.ee. asa. a 13 Marketing Potential and Marketing Prospects for a Structural Clay Products Plant in Northwest Florida o.eo»««. •».»«. ......os... 25 The Case for a Florida Plant. ... 2 5 Selection and Evaluation of a Identifying a Market Area ........ 27 Extent and Characteristics of the l iar.Ke l /\reas .e.o.toe. ••.*•.* «....«•««.. z o Consumption and Demand in the I IdPKc L /\reaS «aee«eseea»e«ea«e.«»«e*eeee JU Conclusion as to Marketable N^OITUTlOCl JL L 1 Co oooao<5e©ooocoeoo©»oe*«»eoo«e OH Prospects for Capturing the Market ....... . 3 5 Transportation - A Comparative nndlySlS eoee..aee'.J 3 Estimate of Probable Market Share ........ . 45 Possibilities for Expanding the Present Market • 48 Conclusion as to Sufficiency of Market.. 90 50 Prospects for Future Growth in the Structural Clay Products Industry , 50 LOIlClUSlOnS «o.eeee.eeoeaooeeee«eo.eeeee.«e.eee.e 31 iii PART II - RAW MATERIALS Location and Description of Deposits 54 Occurrence of Clay Deposits Within Redevelopment Area A,. 54 Previous Work - Liberty and LSinOUn LOUIi T16S s»«coetee««s. ...... .«.«««« OH Criteria for Sampling and Testing 55 Sampling Methods and Sample Design ,... 55 Objectives of the Test Program ............. . 56 Description of the Testing Program 57 Area I - Liberty County, 59 Area II - Liberty County, 65 Area III - Liberty County,..,. 70 Area IV - Calhoun County, 73 Feasibility of Raw Materials Production 74 Determination of Feasibility of Raw Materials Production. , 74 Summary of Reserves , . 75 Summary of Quality. ....,,«, 76 Mining Methods and Problems : Cost of Mining, ..„......,., 77 l rans por x a l i on , »,,,,,«.,,,.«.............,,.. /o Lonciusions ,«.,«.,«,,«,«..,«««.......,,*,«*..... > o PART III - PLANT DESIGN AND COST ESTIMATES Plant Capacity and Operating Schedule 80 Description of Manufacturing Process 80 Manpower Requirements and Labor Costs... 81 Installation Costs. 85 Operating Costs 86 Analysis of Costs and Returns 87 Necessary Conditions for Profitable Plant Operation 90 Conclusions 90 PART IV - ADDITIONAL FACTORS INFLUENCING FEASIBILITY Availability of Plant Sites and Land Costs 91 Characteristics and Availability of Labor 92 Local Availability of Gas, Power, Water and Water Disposal Facilities 92 Summary of Florida Tax Laws 94 IV Criteria for Selection of the Plant Site 96 I indl LOnCxUSlOnSeseoe*** oo o»o8»eo«o« »»♦••»••»»» 3 3 Appendix 1 Logs of Drill Holes and Outcrop OCLlTlL)JL€ UcSCl?ipT.10n o oooooo&ooooootooeeootcA 1 U U Appendix 2 Detailed Test Results., •••••« » • 104 Appendix 3 Graphs Showing Properties of Clay at Various Temperatures » • » «... 110 Appendix 4 Detailed Plant Cost Estimate, . 117 Appendix 5 /\C JCnOWX 6Q gemen L S ss»sooeoeaoeee*«oea6s*o*«e*«» -L c. H Appendix 6 DlDJ.10grapnyoooooooo«>ooo6ti9''Osco«os»o»o»6eo6o 1Z D List of Illustrations Following Page Figure 1 North Florida Showing Location of Redevelopment Area A 1 Figure 2 Principal Markets and Points of Supply of Clay Products . 17 Figure 3 Principal Brick Market Areas and Location of Principal Competing Figure 4 Principal Drain Tile Market Areas and Location of Principal Competing Suppliers . 28 Figure 5 Railroads and Principal Highways, Florida, South Georgia, South Alabama..... 29 Figure 6 Liberty and Calhoun Counties Showing Location of Clay Deposits.... 54 Figure 7 Location of Area I, Liberty County 59 Figure 8 Location of Area II, Liberty County 65 Figure 9 Location of Area III, Liberty County 70 Figure 10 Location of Area IV, Calhoun County Figure 11 Brick Plant Flow Sheet Figure 12 Brick Plant Layout. 73 80 80 VI FEASIBILITY STUDY OF A PROPOSED STRUCTURAL CLAY PRODUCTS INDUSTRY IN REDEVELOPMENT AREA A, NORTHWEST FLORIDA SUMMARY OF REPORT For many years the presence of clay deposits, thought to be suitable for commercial manufacture of bricks and other clay products, has been known in the western part of Florida. A lack of detailed information on quality and extent of the deposits, and, until recent years, the lack of a source of natural gas or other economical fuel , has been a deterrent to the commercial utilization of the clay resources of northwest Florida. In recent years, local citizens have attempted to aid in the development of a clay products industry and sought the aid of the Florida Development Commission and the U. S. Area Redevelopment Administration. As a result of these efforts a contract was negotiated to provide technical assistance in the form of a feasibility study of a clay products industry based on the raw materials present along the banks of the Apalachi- cola River in Liberty and Calhoun Counties, Florida. The study, which was initiated in June 19 63 was to encom- pass detailed investigations of markets, raw materials, manu- facturing processes and equipment and other factors influencing the feasibility of the proposed industry. An investigation of markets for clay products initially included bricks, drain tile, structural tile, quarry or floor tile and lightweight aggregate. It was determined that markets existed - in the area which could be served by a west Florida plant - for common building bricks and, to a minor extent for drainage tile, A total market consumption of 100,000,000 bricks per year was indicated and it was considered that a plant located in west Florida could reasonable expect to capture approximately thirty-five percent of that market. A plant capable of producing 35,000,000 bricks per year is some- what larger than the average size of brick plants in the U. S. and therefore, of sufficient capacity for economic operation. Vll A preliminary program of drilling, sampling and testing of the clay deposits in the area indicated several possible deposits of sufficient extent and quality to permit commer- cial production of clay. Laboratory tests of the clay indi- cated that commercially acceptable brick and drain tile could be made in west Florida. In addition to the favorable physical characteristics of the deposits tested, they also possessed certain location advantages with respect to proximity to water transportation - a necessary consideration for full realization of the market potential. Preliminary plant designs and cost estimates were devel- oped for the purpose of determining production costs and overall economic feasibility of the proposed industry. It was determined that the market potential for drain tile was insufficient to warrant the inclusion of tile producing facilities in the plant, but that bricks could be produced at a competitive price which should allow for a profitable return on invested capital. Vlll FEASIBILITY STUDY OF A PROPOSED STRUCTURAL CLAY PRODUCTS INDUSTRY IN REDEVELOPMENT AREA A, NORTHWEST FLORIDA GENERAL INTRODUCTION Authorization This report was authorized by contract No, Cc-6028, between the U.S. Department of Commerce, Area Redevelopment Administration, and George Aase and Associates, Inc., dated June 14, 1963. The present report is a comprehensive study of the feasibility of establishing a structural clay products industry in west Florida, Area of Study Redevelopment Area A is located in west Florida and comprises all of Franklin, Liberty, Calhoun, Jackson, Holmes, Washington, and Walton (except for Eglin Air Force Base) Counties (Figure 1), Areas in which raw materials suitable for commercial manufacture of clay products are known to exist are essentially limited to Liberty and Calhoun Counties „ Purpose of Study The purpose of this study is to determine the feasibility of establishing a structural clay products industry in Redevelopment Area A, Redevelopment Area A, consisting of the seven counties men- tioned above, was designated as a redevelopment area under Public Law 8 7-2 7, the Area Redevelopment Act, which was signed into law by President John F Kennedy in May, 19 61,, Under seotion 11 of that act, the Area Redevelopment Administration is authorized to provide technical assistance funds to conduct research programs aimed at encouraging the utilization of the natural resources of designated redevelopment areas , Throughout the early history of northwest Florida, bricks were manufactured for local use at numerous sites in the area. Raw materials were obtained from small scattered clay deposits. Most of these small operations produced brick by burning clay in small, wood-fired kilns, with the finished product varying considerably in size and quality. Competition from larger and more modern plants forced most of these small plants out of business by the 19 20 f s and none are now in operation in Florida, At the present time, only two clay brick plants are operating in the state; one at Barth, Florida (north of Pensacola), and the other, a non-commercial, state-owned plant, at the Apalachee -p c 1) CD PS «m O c o •H -p a) o o 2 a3 -p M o CD fe Correctional Institute at Chattahoochee „ Since the only commercial production is in the extreme western part of the state, most of the Florida market is supplied with bricks and other clay products by plants located outside of the state, primarily in Georgia and Alabama*, Clay products, including specialties of various kinds, are shipped into Florida from such distant points as Illinois, Ohio, Arkansas, Kentucky, Texas, Mississippi, and North Carolina * The only known clay deposits in northwest Florida of sufficient extent and high enough quality to supply a modern clay products plant are found near the banks of the Apalachicola River in Liberty County and Calhoun County „ No attempt has yet been made to produce clay products commercially from these deposits * Until recently, there has been no adequate source of fuel available at a low enough cost to permit the utilization of modern manufacturing methods o Another deterrent has been the lack of detailed data on the location and quality of the deposits, and even at this date there is little published information available* A natural gas line serving northwest Florida was completed in 1958, and recent information on the quality and extent of clays substantiates earlier beliefs that the deposits are suitable for commercial development These facts, combined with the long distances and expensive transportation involved in supplying Florida markets with clay products strongly indicates the desirability of investigating the feasibility of establishing a clay products industry in northwest Florida Local interests, sought the aid of the Florida Development Commission in gathering factual information which would lead to the establishment of new industry in the area. The compilation of the detailed information needed, however, was beyond the resources of these groups, and funds were sought from the Area Redevelopment Administration for technical assistance „ As a result of the combined efforts of these agencies, a contract for technical assistance was negotiated between the Area Redevelopment Administration and George Aase and Associates, Inc Scope of Study The overall investigation to be performed under the above mentioned contract is intended to accomplish the following objectives lo Consolidate available data having a bearing upon the feasibility of the project 2o Collect additional data needed to determine the feasibility of the projects, 3 Present all data, together with a complete scientific and economic evaluation of the project, in the form of a report which can be used by local development authorities and potential investors as a basis for the establishment of new industry and creation a new jobs in the area, This report presents the findings of the work completed under Phase I of the contract, market and economic research*, Phase II, preliminary sampling and testing of raw materials; and Phase III, equipment and manufacturing studies <> The original concept of the study grew out of existing information indicating that bricks, equalling or exceeding specifications of the Americal Society for Testing Materials, could be manufactured from the raw materials found in Redevelopment Area A In addition to bricks, the study contains an analysis of the markets for other products of similar manufacturing characteristics, such as structural (hollow) tile, drainage tile, quarry or floor tile s and lightweight aggregate 6 It is understood that the findings of these studies will be made available to all potential investors who might be interested in establishing such industries in the area. The investor will, of course, be influenced in his final decision by his own experience, and by the outcome of negotiations for the purchase of fuel, power, land and raw materials, and manufacturing equipment. Because of these important uncertainties, the findings of this report have in part been based on assumptions of policy and decision which seemed most logical under the circumstances « The report is therefore not intended to arrive conclusively at a final solution to all of the problems involved and decisions to be made in estab- lishing the industry but rather to determine the feasibility of establishing the industry and to furnish the investor with care- fully analyzed factual data to provide a sound basis for exercising his own judgement in the matter The findings and conclusions presented in this report are the responsibility of George Aase and Associates, Inc , Tallahassee, Florida o PART I MARKET ANALYSIS CHARACTERISTICS, TYPES AND USES OF STRUCTURAL CLAY PkODiTcT? Definition The term "structural clay products" generally includes various types of brick, hollow or structural tile of all types, lightweight aggregate, and certain decorative as well as structural clay pro- ducts such as ceramic veneer, architectural terra cotta and orna- mental sculpture o Although not technically a structural product, drainage tile was also included, for the purpose of this report only, among the products covered by this study because of its similar physical properties and manufacturing characteristics , Structural clay products, with the exception of lightweight aggregate, are made by molding or otherwise forming wet clay into the desired shape and heating or "firing" the product to temperatures of up to 2400° F Lightweight aggregate is produced by heating pellets of clay in a rotary kiln until the clay is fused into an ex- panded cellular mass. The cindery material is then allowed to cool and is crushed and screened for use as a concrete aggregate. Distinctive Properties of Clay Products Several characteristics of clay products contribute to their desirability as construction materials , Most important of these are: (1) the load bearing characteristics of brick and structural tile, (2) low upkeep and maintenance costs, (3) durability and long life, (4) fire resistance, and (5) the appearance or esthetic qualities of masonry construction, In addition to the above properties, which are important in masonry wall construction, clay products such as drain tile and light- weight aggregate possess additional qualities that have made these products important in the construction industry. Clay drain tile has the advantage of being one of the lowest- cost materials available for use in septic system drain fields and for other uses where a non-jointed drainage line is required. It is highly resistant to attach by sewage effluent, and is now being manufactured with copper wire bonded to the inside of the tile for the purpose of preventing root damage by inhibiting plant growth in- side drainage lines. Lightweight concrete aggregates made of expanded clay permit the reduction of weight of concrete from approximately 150 pounds per cubic foot to 50 to 90 pounds per cubic foot without a serious reduction in strength. The resulting concrete also possesses supe- rior insulating qualities. Principal Types and Uses of Products Now in Use The principal types 57 structural clay products are; bricks, structural or hollow tile, quarry or floor tile, and lightweight aggregate. As previously mentioned, this report will also include drainage tile, since its physical specifications are similar to bricks and structural tile and because it is a common construction material in the geographic area covered by this study „ Building bricks are generally classified as either "common" or "face" bricks. The term face brick may be used to refer to a brick made to relatively close dimensional tolerance and of a uniform color, texture and finish, A face brick is used for exterior wall construction, and probably the most important single characteristic of such a brick, especially in residential and small commercial construction, is its appearance . Bricks are made in several standard sizes, as shown by the table below (Structural Clay Products Insti- tute, 1961). TABLE 1 NOMINAL MODULAR SIZES OF BRICK hickness Height Length (Inches ) (Inches) (Inches ) 4 2-2/3 8 4 2 12 14 2-2/3 12 4 3-1/5 8 4 4 8 4 4 12 4 5-1/3 8 4 5-1/3 12 6 2-2/3 12 Conventional Brick Roman Brick Norman Brick Engineers Brick Economy Brick Jumbo Brick Double Brick Triple Brick "SCR Brick" * " Reg. U.S. Patent Off., Pat Pendo , Structural Clay Products Research Foundation Note: Nominal size of a masonry unit includes the thickness of the mortar joint with which the unit is designed to be laid. Probably the most commonly used brick in Florida construction is the conventional brick. Roman brick is manufactured in Alabama and is also used frequently in Florida. Perhaps the most important, and most widely varying character- istics of bricks used for residential construction are those fea- tures contributing to the external appearance of the brick - color and texture. Although ninety-nine percent of the brick production of the United States is classified as various shades of red, buff, and cream, at least 182 separate color names have been applied to bricks available in the U, S. Glazed bricks may, of course, be made in nearly any color* Several common surface textures are avail- able in building bricks. These textures are described as scored, strippled, hammered, sands truck and waterstruck - however, these are general terms which do not adequately describe textures, and, since no system of textural classification has been devised, textures are usually described and selected by reference to a sample brick (Structural Clay Products Institute, 1960). The properties or characteristics of a high quality brick vary widely according to the intended use of the brick. For residential structures and other buildings where great load-bearing character- istics are not necessary, the appearance of the brick may outweigh all other considerations . A high quality building brick should have a modulus of rupture of 600 pounds per square inch or a minimum compressive strength of 3000 pounds per square inch. In northern climates, resistance to freezing and thawing is important, but in the market area served by a plant located in north- west Florida this characteristic need not be considered. Absorption of. water is indicative of how well the mortar will bond the brick, although . this property is not usually included in required specifications. Bricks with high rates of absorption may require soaking in water prior to laying of the brick. The dimensional tolerances of brick should be held to within + 3 percent of the specified dimension. Structural or hollow tile is made in two general typss : end- construction, in which the principal stress is received parallel to the axes of the cells, and side-construction, which is designed to receive the principal stress at right angles to the cells. Both types are made with load-bearing and non-load bearing character- istics. Structural tile is available in a wide variety of standard sizes and a variety of finishes. It may be used to comprise an entire wall or it may be used as a backing for brick or other facing. Structural tile has been widely used in brick and tile loadbearing walls for multiplestory buildings. Quarry or floor tile is used primarily in residential con- struction for surfacing kitchen or bathroom floors and enclosed porches or patios. It is commonly made in U-l/2 or 6 inch squares about one inch thick, and may be produced with an artifical coloring or pattern. All quarry tile used in Florida is shipped into the state from distant sources. Similar products, such as architectural terra cotta, glazed tile, and specially shaped products which are used for decorative as well as structural purposes, are generally made to order and for this reason will not be considered in this report. Drainage tile is made in a variety of diameters and lengths, the most common being four inches in diameter and twelve inches in length It is used in drainage lines for the purpose of collecting and diverting excess moisture, or for removal of water or sewage from a collection point to the drain field where it is absorbed into the ground. The most common use in Florida is in septic system drain fields. Sewage effluent flows from the septic tank, through a line of sealed glazed clay pipe, or cast iron pipe to a distribution box where it enters the drainage lines. Tile in the drainage lines is laid in a bed of gravel or other porous material with spaces between each tile to permit the escape of the effluent. No clay drainage tile is produced in Florida and all that is used is shipped from adjacent states. Lightweight aggregate is a burned clay product used primarily where a reduction in weight without a serious loss of structural strength is required „ It is coming into wide use for construction of bridges and in concrete block manufacturing because of its superior insulating qualities. The scarcity of natural aggregate in Florida has also been a factor in its expanding usage in the state. It has probably not yet realized its full market potential because of its high cost and limited availability. Principal Competing Products While structural clay products have several very desirable characteristics which may in many cases favor their use, the industry is beset by competition from other products. The lower initial cost and, in some areas, the more ready availability of concrete block, Portland cement, expanded slag, vermiculite, natural aggregate, lum- ber and wood products , has led to the widespread use of these compet- ing products. The factors influencing and limiting the production and use of clay products will be examined in detail in this report. PRODUCTION AND USE OF STRUCTURAL CLAY PRODUCTS " — I N T HEf iW ITE d s ta te s — ~" Importance of the .industry With a combined value of shipments amounting to $510,473,000 in 1962, the clay construction products industry represents a major element of the national economy. Some important clay products have declined in usage, however, as others have increased, and on the whole the industry has experienced only moderate and sporadic growth during recent years, A close correlation exists between the fortunes of the clay construction products industry and the building industry as a whole, and both in _ turn are reflected in the trend of the general economy. These relationships are borne out in the comparison below. Value of Clay Prod ucts i (Mill ion $ ) 1 Vali je % ,5 ,7 Chanpe 347, 356 + 2. 6 490 .1 + 12. 5 501 .6 + 2. 3 1439 .2 -12. 4 452 .6 + 3. 521 .5 + 15. 2 487 ,4 - 6. 5 479 .1 - 2. 5 510 .5 + 6. 5 Gross National Product Value of New (Million $) Construction (Million $) Value % Change Value % Change 1953 363.2 45,697 1954 361.2 - 0.5 48,587 + 6.3 1955 397.5 +10.0 52,941 + 9.0 1956 419.2 + 5.5 51,794 - 2.2 1957 442.8 +5.6 51,979 +0.4 1958 444.5 +0.3 52,505 +1.0 1959 482.8 + 8.6 57,304 + 9.1 1960 504.4 +' 4.5 54,846 - 4.3 1961 521.2 + 3.3 57,399 +4.7 1962 553.9 + 5.9 61,084 + 6.0 Source : Statistical Abstract of the United States Distribution of the Industry Distribution of the clay products industry in the United States is influenced by the most favorable combinations of raw material and market locations. Probably as much or more than for any other major construction material, quality of raw material is of extreme importance for the manufacture of clay products. Clay deposits of both suitable quality and adequate size for commercial exploitation are relatively few, although of fairly wide geographical distribution. Because of the high cost of transporting structural clay products, only those deposits within reasonable shipping distance of a market can be profitably developed. Proximity to markets being all important, the industry has tended to concentrate near the centers of population, where con- struction activity is sufficeint to create demand for the products, Every state in the union has a clay products industry of some type, but Ohio, Pennsylvania, New York, Virginia, North Carolina, South Carolina, Illinois, Georgia, Alabama, Texas, Tennessee and California are perennially among the major producers. A notable exception to the general trend of the industry to follow the development of markets is evidenced in the lack of local production to serve rapidly growing central and southern Florida. This is accounted for by the virtual absence of suitable clay deposits in the Florida peninsula. Data on the National Clay Products I nd ustry Because of the wide variety of"""cTay construction products manu- factured in the United States today, it has been necessary for nation- al data reporting agencies to develop broad categories for statistical purposes. This categorization makes it virtually impossible in some cases to analyze the production and marketing characteristics for individual products. In these instances, the groupings inclusive of the product of particular interest will be considered as generally representative of the product itself. Although the clay construction products industry embraces a wide range of finished products - including all types of ceramic and facing tile and accessories - for the background useful to this re- port primary attention will be given to the several products for which competition is likely to be developed in the northwest Florida area. These have been identified earlier, but are listed below with reference to the classifications devised by data reporting agencies. From the U, So Department of Commerce, Bureau of the Census: (a) brick - "unglazed brick (building or common and face)" (b) structural tile - "structural clay tile (except facing)" (c) quarry tile - "dlay floor and wall tile and accessories (glazed and unglazed), including quarry tile" (d) drain tile - (separate statistics for drain tile have not been reported since 1953.) From the U. S. Department of the Interior. Bureau of Mines: (e) lightweight aggregate - "lightweight aggregate" Thus, for three of the five identified products - brick, structural tile and lightweight aggregate - data are available in a highly useful form. Analysis of these da1£ throws some interesting light on the trend of these products in the national economic picture. Production of Structural Clay Products Brick - Easily the most important of all structural clay products, bricks account for the greatest volume and value in United States production. Despite its importance in the industry, however, and its common acceptance as a construction product, brick production has been essentially static over the past decade, as reflected in the table below. Brick Production Change % Change (1000 units) ______ 1953 5,873,850 1954 6,153,193 + 279,3*43 + 4,8 1955 7,790,000 +1,636,807 +26,6 1956 8,085,405 + 295,405 + 3.8 1957 6,658,000 -1,427,405 -17.7 10 Brick Production Change % Chanpe (1000 units) 1958 6,489,000 1959 7,336,000 1960 6,943,000 1961 6,682,000 1962 6,889,000 Source : U, , S. Bureau of 169,000 - 2.5 847,000 + 13.1 393,000 - 5.4 261,000 - 3.8 207,000 + 3.1 Bureau of Census , Current Industrial Report Actual brick production capacity in the United States is not known precisely, but it is estimated at considerably in excess of the 8,085,405,000 peak production reached in 1956. Production is limited not by inadequate plant capacity or raw materials, but by a static market. Structural Tile - Once a major component of the industry, structural tile has suffered greatly from competition by concrete building block, and has declined sharply in volume produced during recent years. Structural Tile Change % Change (Short Tons) 1953 990,400 ™. 1954 995,400 + 5,000 + . 5 1955 934,900 - 60,500 - 6.1 1956 861,600 -133,800 -14.3 1957 687,100 -174,500 -20.3 1958 573,500 -113,600 -16.5 1959 549,300 - 24,200 - 4.2 1960 496,133 - 53,167 - 9.7 1961 478,470 - 17,663 - 3.6 1962 438,987 - 39,483 - 8.3 Source: U .S. Bureau of Census , Current Industrial Repor It appears likely that this downward trend will continue until this product is of virtual insignificance in the industry 4 Quarry Tile - While only of secondary importance in the industry, quarry tile has retained its popularity as a floor material* The following production figures for floor and wall tile may well be representative of quarry tile, which is included. 11 Floor and Wall Tile (1000 sq. ft.) 1953 137,429 1954 141,066 1955 233,001 1956 245,996 1957 216,552 1958 221,768 1959 ?58,631 1960 241,870 1961 228,897 1962 258,001 Source : U.S . Bureau of ' Change % Change + 3,637 + 2.6 +91,935 + 65.2 +12,995 + 5.6 -29,444 -12.0 + 5,216 + 2.4 +36,863 + 16.6 -16,761 - 6.5 -12,973 - 5 4 +29,104 + 12.7 Bureau of Census, Current Industrial Reports This upward trend has been one of the most promising signs in the industry, although the volume of quarry tile still has not in- creased to the point of engendering widespread, local production. The number of plants manufacturing quarry tile is probably no more than 5 percent of the number producing common brick. Drain Tile - Although separate figures for drain tile production have not been reported for recent years, a generally upward trend was indicated through the year 1953. United States product5o" ■♦-hat year totalled 817,826 tons. 1+ is believed that production may have fallen off considerably since 1953, however, because of the declining use of septic tank sewerage systems. Lightweight Clay Aggregate - It is probable that lightweight clay aggregate, a relatively new product, has not yet attained its full marketing potential. Figures for miscellaneous clay used for lightweight aggregate production are available from 1953, and illustrate a remarkable upward trend. Misc. Clay Use :d For Change % Change Lightweight Aggregate (Tons) 1953 1,166,553 _ 1954 1,548,550 381,997 + 32 74 1955 3,092,583 1,544,033 +99. 70 1956 4,087,913 995,330 +32,18 1957 3,752,455 -335,458 - 8,20 1958 4,456,867 704,412 +18.77 1959 5,270,298 813,431 +18.25 1960 5,504,367 234,069 + 4.44 1961 6,047,092 542,725 + 9.58 1962 6,769,912 722,820 +11.95 Source : U »S. Bureau of Mines , Minerals Yearbook s 12 For areas where expanded clay products can be marketed compe- titively with other lightweight aggregates, this could develop as o one of the most important items in the clay products line. Consumption of Structural Clay Products While the production figures discussed above generally represent the industry's response to the changing national demand for the products in question, consumption figures are actually a measure of the demand. Because the industry is fairly sensitive and flexible, however, production is kept closely in line with the demand, and both are characterized by essentially the same behavior. Consumption of brick, structural tile and floor and wall tile during the past decade, as represented by actual shipments is indicated in the table below. BRI Shipments (1000) 1953 5,771,211 1954 6,119,395 1955 7,741,000 1956 7,381,600 1957 6,305,900 1958 6,458,800 19^9 7,728,000 1960 6,502,200 1961 6,428,600 1962 6,913,067 CK Value (1000 $) rB777T2 177,539 231,410 236,349 205,758 209,949 241,385 223,546 225,285 246,457 STRUCTURAL Shipments (Tons) 921,985 895,284 928,940 750,458 640,695 542,869 521,346 483,174 475,969 422,861 TILE Value (1000 $) 11,524 11,143 11,732 9,811 8,749 7,709 7,958 7,840 7,404 6,590 FLOOR £ WALL TILE Shipments Value (M.sq. ftO (1000 $) 134,375 139,515 232,802 227,369 211,635 215,710 252,545 232,959 228,411 253,104 TT7 75, 128, 128, 115, 119, 141, 129, 124, 135, 932 193 526 543 171 149 524 301 526 Source: U. S. Bureau of Census, Current Industrial Reports While no complete figures are available for national consumption of drain tile and lightweight clay aggregate, it may reasonably be assumed that consumption of these commodities bears the same general relationship to production as indicated for the three categories of products tabulated below. BRICK Shipments % of Shipments % of Shipments % cf (1000) Production (Tons) Production (H sq, ft.) Production 1953 5,771,211 98,3 921,985 93.1 134,375 97.8 1954 6,119,395, 91.0 895,284 93.9 139,515 98.9 1955 7,741,000 98.0 928,940 99.4 232,802 99.9 1956 7,382,600 91.8 750,458 87.1 227,369 92.4 1957 6,306,900 94.7 640,695 93.2 211,635 97.7 1958 6,439,800 99.6 543,869 94.7 215,710 97.3 1959 7,259,000 98.9 521,346 94.7 252,545 97.6 1960 6,502,200 93.7 488,174 98.4 232,959 96.3 1961 6,428,600 95.9 475,969 99.5 228,411 99.8 1962 6,913,067 100.4 422,861 96.3 253,104 98,1 Source: U. S. Bureau of Census, Current Industrial Reports 13 Factors Influencing Consumption '' As pointed out earlier, consumption of clay products in the United States is intimately tied to the vagaries of the construction industry, which in turn is influenced by the condition of the national economy. This is further borne out in the case of brick by a percentage comparison with the trend of residential construction in the United States. While structural tile, lightweight aggregate and, to a great extent, floor and wall tile have their principal uses in non-residential construction, about 70 percent of the national brick consumption is accounted for by the home building industry. New Hous ihg Units Value of Resi dential Brick Sh Lpments Constructed Construct ion Number % Change (Million $) % Change (1000) % Change 1953 1101* — — _ * 18,113 5,771,211 _-- 195H 1220 + 10,5 20,069 + 10.8 6,119,395 + 6.0 1955 1329 + 8.9 23,580 + 17, ,5 7,741,000 + 26.5 1956 1118 -15.9 21,296 - 9 ,7 7,382,600 - 4.6 1957 1042 — 5.8 20,310 - 4 ,6 6,306,900 -14,6 1958 1209 + 16.0 21,705 + 6 ,9 6,459,800 + 2.4 1959 1531 + 26.6 25,965 + 19 ,6 7,258,000 + 12.4 1960 1274 -16.8 23,262 -10 ,4 6,502,200 -10.4 1961 1327 + 4.2 23,339 + ,3 6,428,600 - 1.1 1962 1482 + 11.6 24,833 + 6 1 6,913,067 + 7.5 Source: Statistical Abstract of the United States Transportation of Clay Products Because transportation has such an important bearing on the marketing side of the clay products industry, several aspects of this subject should be noted. Bricks and other clay products are extremely heavy, and high freight costs are incurred for shipping even short distances. The high freight-cost to products-value ratio effectively limits the eco- nomic shipping radius for clay products to about 500 miles by rail and 250 miles by truck. The average of shipments in most cases would probably be somewhat less than these distances. Only in the case of special products or shipments for a special purpose can longer hauls be justified. At these distances, freight costs would repre- sent about half of the total cost at the point of delivery, and only under unusual circumstances could the product stand the competition from alternative products available in the locality. Because of their versatility and susceptibility to closer control, trucks are the preferred method of transportation employed by the industry. Specially designed trailers have been developed to facili- tate loading and unloading, and once loaded they can be delivered directly to the construction site or other specific location without further handling. Less-than-capacity lots can be carried with greater 14 efficiency and economy by trucks than by rail car, and the flexi- bility of trucking permits ready delivery by any route and on any time schedule. Many producers have gone to the exclusive use of contract haulers or company-owned trucks in preference to common carriers . The following figures, weighted on the basis of the number of producers reporting rather than the volume of clay products shipped, were developed in 1961, by a survey conducted by a leading trade journal . United States Average Percent of total shipments shipped by rail 16.5* Percent of total shipments shipped by truck 76.0* Percent of total shipments picked up by user 13.9* Percent of truck shipments shipped by contract hauler 29.6 Percent of truck shipments shipped by company- owned trucks 40.1 Percent having exclusive use of contract hauler 26.8 * Excess over 100% not explained - probably due to multiple-response reporting procedures Imports and Exports Imports and exports of structural clay products play only a minor role in the economics of the industry. Annual imports and exports of these products total less than one percent of the U.S. annual production. In 1962, imports totalled 11,486,000 brick equivalents with a value of $428,707.00. Over 90 percent of im- ports originated in Canada and Mexico with minor percentages shipped from Denmark and Italy. In 1962, the U. S. exported a total of 29,937,000 brick equivalents irithe form of building and paving bricks and structural tile. These shipments had a value of $2,704,682.00. They were shipped primarily to Canada and Mexico, with less than ten percent to destinations in fourteen foreign countries in Central and South America, Europe and the Middle East (U.S. Bureau of Census, 1962 Annuals, U. S, Imports, U. S. Exports). Foreign import and export figures from Florida ports are available only for the broad classi- fication of brick (all types) and tile (all types) for the year 1961, when a Florida Customs District was created. The total ex- ports were valued at $132,000.00 with a weight of only 595 tons. Imports totaled 5,549 tons with a value of $927,000.00, It is believed that none of the exported products were manu- factured in Florida, and it is unlikely that a large percentage of the imports consisted of common structural materials such as brick 15 or structural tile. Most of the imports were probably various types of specialty products including special types of building brick and ornamental clay products. The small quantities of brick and tile exported from Florida ports probably were manufactured in Georgia, Alabama or elsewhere, and transported to Florida ports for export primarily to Central and South America. REGIONAL PRODUCTION AND MARKETING CHARACTERISTICS Regional Identity Because structural clay products for the most part are not shipped great distances and because production is rather widespread in the United States, it is possible to identify regional marketing patterns. A region in this sense would be an area the radius of which would approximate the optimum economic marketing distance from a given plant, and within which a reasonable balance of production and consumption exists. Obviously, there can be no perfect examples of such a region, but, in the case of the area presently under study, a logical regional unit is made up of the three states of Alabama, Georgia and Florida. This three-state area perhaps lends itself better to the regional identity than any other area of the country. Georgia and Alabama are both surplus producers of structural clay products, but much of this surplus is marketed in Florida, where a great supply deficit exists. Conversely, an overwhelming majority of the structural clay products consumed in the three-state area is produced in those states. The result is little net import and export. There is a significant amount of shipments out of Georgia and Alabama to the north and north- west, but these are still minor compared to the total volume. With the exception of specialty products, probably 9 5 percent of the structural clay products used in the three-state area comes from within. With this more-or-less self-contained supply and demand situ- ation, this three-state region bears closer analysis as the market entity in which a new structural clay products industry in northwest Florida will have to function. Production in the Three-State Region "Volume and national standing "^"Because of the availability of suitable clay deposits throughout most of Georgia and Alabama, these two states have been able to develop significant clay products in- dustries. Florida, on the other hand, has little suitable clay and, consequently, virtually no dependent industry, These facts color the regional picture to the extent that, while Georgia and Alabama would each rank high in production as individual states, the region as a whole rates something less than an average standing in the national picture. Although detailed statistics are not available to establish the 16 exact position of the industry on a regional basis, published figures for brick and structural tile production and miscellaneous clay shipments indicate that Georgia, Alabama and Florida together account for about eight to ten percent of national clay products production. The relatively low position in the national production is indicated by the fact that the region has slightly more than fourteen percent of the United States population and is growing at a rate 64% faster than the national average. It is interesting to note that the region produces, on an average, about twice as much of the nation's structural tile as it does of its brick. Since the structural tile industry in the United States has dwindled to the point where it uses less than five percent of the clay used by the brick industry, the prominent position of the region in the tile production picture has little consequence when the clay products industry as a whole is considered. The figures below show production trends for the three-state region over the past decade. The position of the region in the national production picture is indicated by percentage. TABLE 2 REGIONAL PRODUCTION DATA Misc. Clay % of Brick % of Structural "% of Sold or Used U.S. Production U.S. Tile Pro- U.S. (1000 Tons) (1000 Units) duction (Tons) 1953 2,300 8.1 512,442 8.7 200,540 24.3 1954 2,590 8.6 556,721 9.0 211,157 22.1 1955 2,690 8.6 700,000- 8.7 N.A. --__ 1956 2,765 8.1 6 6 5 , * 8.2 N.A. 1957 2,230 7.5 547,014 8.2 134,628 19.6 1958 2,710 8.8 598,961 9.2 115,757 24.2 1959 3,100 8.8 714,254 9.7 131,088 23.8 1960 3,130 9.1 642,853 9.2 126,093 25.4 1961 3,120 9;1 646,156 9.7 113,743 23.8 1962 2,824 8.2 721,264 10.7 63,262 14.4 " Constructed Figure Source : U~, ST Bureau of Mines, Minerals Yearbooks Perhaps a better indication of regional standing in United States production is provided by the following table, which consoli- dates brick and structural tile on a tonnage basis. 17 TABLE 3 BRICK AND STRUCTURAL TILE PRODUCTION- — dtt: — Production (Tons) Regional Production (Tons) Regional % of U.S. 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 12,738 13,301 16,5m 17,032 14,003 13,541 15,221 14,382 13,842 14,216 ,100 ,786 ,900 ,410 ,100 ,500 ,300 ,133 ,470 ,987 1,225,424 1,324,519 1,228,656 1,313,697 1,559,596 1,411,796 1,406,055 1,505„780 9.6 9.9 8 9 12 9 10 10 Equated on basis of 1 brick. = 4 pounds Source: U. S. Bureau of Census, Current Industrial Reports It is significant that, although production of structural tile - of such relative importance in this region - has declined sharply at both national and regional levels, the region has experienced a slight overall increase in its share of United States production of brick and tile combined. This is probably attributable to the growing market within the region, which - although primarily because of Florida - is increasing in population somewhat faster than the United States as a whole. Unfortunately, no figures are available to reflect regional production of drain tile, floor and wall tile and lightweight aggre- gate. Superficial analysis of figures reported for a broader regional breakdown by the U. S. Department of Commerce indicates that floor and wall tile production in the southeastern United States is very limited. Similarly, the distribution of production facilities in the United States leads to the conclusion that lightweight clay aggregate production in the region is relatively minor. On the other hand, clay drain tile is a commodity in considerable demand in this part of the country, and its production in the region is significant. Whatever the production rates of other clay products, however, they would effect relatively little change in the national ranking of the region established by the brick and tile figures discussed above. Production facilities - Figure 2 shows the geographic distri- bution of structural clay products plants, by type of principal 18 product, in the three-state region. Production facilities are fairly well scattered throughout Alabama and northern Georgia, but are strikingly absent in Florida and the adjacent parts of Georgia. In a number of plants, it can be seen that brick, structural tile and drain tile are fairly common. Of particular importance in the marketing patterns in the southern part of the region is the tight line of plants stretching from Fairhope, Alabama, on the southwest, up through Montgomery, Alabama and Columbus, Macon and Milledgeville , Georgia, to Augusta, Georgia, on the northeast. This line marks the southern flank of major producers in the three-state region, and to a great extent dominates the growing market to the south and southeast, including virtually all of Florida. It is significant to note that there are only two producers of lightweight clay aggregate in th« region, and no plants special- izing in quarry tile or similar items. One of the lightweight aggregate plants is at Rockmart , Georgia, northwest of Atlanta, and the other is at Green Cove Springs, Florida, south of Jacksonville. A tabular summary of structural clay products plants in the three-state region by principal type of product, is provided below. Common Brick Barth, Florida Plant City, Florida (under construction) Augusta, Georgia (2) Columbus, Georgia (2) Macon, Georgia (2) Thomasville, Georgia Atlanta, Georgia (2) Rome, Georgia Calhoun, Georgia Lafayette, Georgia Dalton, Georgia Fairhope, Alabama Montgomery, Alabama Birmingham, Alabama (4) Newton, Alabama Gadsden, Alabama Brewton, Alabama Phenix City, Alabama Piedmont , Alabama Cordova , Alabama Decatur, Alabama Huntsville, Alabama Structural Tile Augusta, Georgia (2) Macon, Georgia Columbus , Georgia 19 T i i AHUNTSVILLE T " A DALTON f DECATUR ^LAFAYETTE ^CALHOUN S \ •-N I □ CORDOVA* Birmingham^ ▲ ▲ ▲ •tuscaloosa A POME % ^gadsdeA if ^PiEpMONT ■ \ ATLANTA + \ ▲ ▲ AUGUSTA'A \ SBORO WAYNE MILLEDGEVILLE X \ \ k MACON □ k a AA SELMA AA MONTGOMERY .□ P C^TY X A\* COLUMBUS • i* FIGURE 2 PRINCIPAL MARKETS and POINTS OF SUF OF CLAY PRODUCTS ••#■«*• 20 Structural Tile - continued Fairhope , Alabama Montgomery, Alabama Bessemer, Alabama Birmingham, Alabama Cordova, Alabama Drainage Tile Atlanta, Georgia Harlem, Georgia Milledgeville, Georgia Augusta, Georgia Columbus , Georgia Phenix City, Alabama Fairhope , Alabama Birmingham, Alabama Gadsden, Alabama Anniston, Alabama Decatur, Alabama Lightweight Aggregate Green Cove Springs , Florida Rockmart , Georgia Factors influencing distribution - On the regional level, the limiting effect of raw materials availability on the distribution of structural clay products plants becomes even more apparent. Whereas a cursory study of the national clay products industry would justify a conclusion that producing facilities are located in relatively close proximity to all major markets and are fairly well distributed through- out the country, analysis of the regional picture immediately points up the glaring ; imbalance in plant distribution. The acute deficiency of commercially usable clay deposits in peninsula Florida has in effect deprived that rapidly growing area of major use of clay structural materials. Local production - although possible with imported raw materials - has been impractical, and the high transportation costs incurred in the shipment of finished prod- ucts 400-600 miles have made it virtually impossible to compete suc- essfully with concrete aatri other alternative products that can be supplied at lower cost. In the face of this situation, it is interesting to note the construction of a brick plant now in progress at Plant City, Florida, immediately east of Tampa. It is indicated that this plant will obtain its raw materials from outside the state. Shipment of raw materials to an area of high market potential does have an advantage over shipment of the finished product an equal distance in that there is only the single destination for large volume shipments. Also, be- cause the raw materials are of lower value than the finished product, it will be economically more feasible to stockpile quantities, re- ducing the dependence on closely scheduled transportation. Still, a 21 venture of this nature is the exception to a long-established rule, and at this point can be regarded only as a high-risk business experiment. If it proves successful, it obviously will be fbllowed by other such ventures. The reluctance of the industry to ship raw materials to market- based plants, however, is influenced also by factors other than trans- portation costs. Some clays contain so much moisture that shipping of raw materials is impractical. Other clays may lose so much moisture during shipment that additional treatment is necessary at the plant. In special cases, however, such as the manufacture of sewer pipe, where raw materials are usually blended and come to the plant from more than one source of supply, and where shipment of the finished product is frequently more difficult and costly than shipment of the raw material, transportation of the raw material to plant sites near the markets is becoming more common. A good example of this is the vitrified clay sewer pipe plant recently constructed at Ocala, Florida, by the U. S, Concrete Pipe Company. Raw materials for this plant are shipped several hundred miles, primarily from sources in Georgia. Consumption in the Three-State Region Consumption of structural clay products varies greatly within the region. For Alabama, Georgia and northern Florida, the use rate is near - and possibly slightly in excess of - the national average. In extreme southern Florida, on the other hand, the use of structural clay products is virtually unknown. While lack of reported data makes it difficult to estimate consumption for the three-state region, somewhere in the vicinity of 500 to 600 million bricks are used annually, and probably 50 to 60 thousand tons of structural clay tile. It is true that only a small part of regional production of clay products is shipped outside the region, and even fewer such products are brought in. Thus, the region is a net exporter, and its internal consumption is something less than its total shipments. Figures for total shipments correspond very closely to production figures in a parallel to the national pattern. The trend in total shipments over the past decade for brick and structural tile is re- flected in the table below. TABLE 4 REGIONAL BRICK AND TILE SHIPMENTS Regional Brick " % ot Regional Structural % of Shipments Production Tile Shipments Production (1000 Units) (Tons) 194,483 96.9 196,422 93.0 N.A. N.A. 22 1953 508,092 97.1 1954 562,219 100.9 1955 704,000* 100.1 1956 630,000* 94.7 TABLE 4 (continued) Regional Brick % of Regional Structural % of Shipments Production Tile Shipments Production (1000 Units) (Tons) 1957 531,855 92.6 126,300 93.8 1958 613,263 100.2 112,475 97.1 1959 697,411 97.6 119,645 91.2 1960 613,954 95.5 116,921 91.9 1961 627,739 97.0 108,280 95.1 1962 754,497 104,3 63,324 99.9 * Constructed Figure Source: U. S. Bureau of Census, Current Industrial Reports An indication of the regional in-shipment and out-shipment picture - and, therefore, regional consumption - for the two major structural clay products can obtained from analysis of the U. S. Interstate Commerce Commission Waybill Statistics for commodities shipped by rail. While it is true that only a small part of total shipments - probably 20-2 5 percent - are carried by rail, nevertheless, these rail shipments would cover more of the longer hauls involved in shipping outside the three-state region. This fact would tend to increase the representativeness of rail statistics for all out-of-region shipments. There are several interesting conclusions suggested by the Waybill Statistics over the past decade. First, they show that, on the average, 71 percent of sampled rail shipments of brick origin- ating in the region have destinations also within the region. Since truck hauls would average probably something less than half the distance of these rail hauls, it follows that an even larger per- centage of regional truck shipments are bound for other points within the region. Assuming that truck shipments represented eighty percent of total brick shipments, and that eighty percent of total truck shipments stayed within the region as opposed to the 71 per- cent for rail, then theoretically 78.2 percent of total brick ship- ments would stay within the region. Since out-of-region shipments are already accounted for, the addition of into-region shipments would produce a figure for re- gional consumption. The Waybill Statistics also show that over the past decade rail shipments of brick into the region from points of origin outside have averaged 20 percent of rail shipments ori- ginating within the region and bound for points outside. This figure would probably be considerably higher for truck shipments, inasmuch as the surrounding states of Mississippi, Tennessee, North Carolina and South Carolina all have a significant clay pro- ducts industry with which to reciprocate inter-state trade on a 23 local truck-haul basis. Assuming that this figure were 50 percent for truck shipments, then theoretically an amount equal to 9.16 per- cent of total regional brick shipments would be marketed in the region from production outside. Empirical observations, however, would indicate that this figure is somewhat high. On this theoretical basis, the apparent consumption of bricks within the region would thus be 87.36 percent of total regional ship- ments. For a banner year such as 1962, when total shipments reached a record high of 754,497,000 bricks, regional consumption would have been on the order of 660,000,000. Based on an average of several years, however, the figure would be substantially lower. Since similar data are available from the Waybill Statistics for structural tile, an apparent consumption figure for this commodity can be developed by the same process. The statistics indicate that an average of only 51 percent of structural tile shipped by rail from plants in the region is bound for points within the region, as compared with the 71 percent for brick. Also, an average amount equal to 89 percent of all out-shipments by rail is brought into the region by rail, as compared with the 20 percent for bricks. Although the sampling procedures used to compile the Waybill Statistics have limitations which render the results less suitable for quantitative analysis than for developing percentage relation- ships, there is good reason to infer from these statistics that the proportion of all structural tile carried by rail is larger than that of brick. Bearing in mind that the waybill sample is one per- cent, consider the following comparative analysis. Brick Tile (1) Average annual tons by rail reported (1953-61) 3,027 2,345 (2) Sample X 100 302,700 234, 5€0 (3) Average annual total shipments reported (1953-61) 1,219,674 139,218 (4) Rail shipments (line (2)) as percent of total shipments (line 3)) 24.8 168,5 While the 24,8 percent of total shipments by rail appears reasonably accurate for brick, the figure for structural clay tile is patently unusable. Since the irregularity is" fairly consistent through the years, however,, it must be explained by the differences in the commodity definitions used by the two separate reporting agencies. Nevertheless, it is improbable that the category used for the Waybill Statistics could include sufficient other clay tile commodities to account for the total discrepancy, This would require a commodity category with over six times the volume of structural clay tile as reported by the Bureail, of the Census. The more logical explanation is that the percentage of these products shipped by rail is higher than the 24.8 percent for brick. 24 Depending on the values assigned for the several variables - which are not as well established for structural tile as for brick - an indicated consumption of 75-100 thousand tons of structural tile per year is obtained for the three-state region. As this would represent about 15-20 percent of national consumption, however, it is probably somewhat on the high side, hence the lowering of the estimate to 50-60 thousand tons. Waybill Statistics for brick and structural clay tile, on which the above conputations are based, are contained in the following tables o TABLE 5 SELECTED WAYBILL STATISTICS FOR BRICK THREE-STATE REGION (one percent sample) Total Regional Shipments Reported (Tons) Shipments To: Points Points Within Outside Region Region Shipments to Region From Outside 1953 1954 1955 1956 1957 1958 1959 1960 1961 3,640 3,614 3,779 3,791 ,903 ,293 ,609 ,457 ,159 2,725 2,468 2,874 2,724 1,957 2,551 1,550 1,759 763 915 1,146 905 1,067 946 742 1,059 698 396 86 50 268 248 101 133 44 257 379 TABLE g SELECTED WAYBILL STATISTICS FOR STRUCTURAL CLAY TILE THREE-STATE REGION (one percent sample) Total Regional Shipments Reported (Tons) Shipments To: Points Points Within Outside Region Region Shipments to Region From Outside 1953 1954 1955 1956 1957 1958 1959 1960 1961 2,140 2,597 2,430 2,580 1,531 1,857 3,045 2,491 2,438 936 1,557 1,198 1,468 666 957 1^462 1,335 1,267 1,204 1,040 1,232 1,112 865 900 1,583 1,156 1,171 1,078 719 819 1,135 975 1,227 1,090 975 1,114 25 There is little information available concerning the consumption of drain tile, floor tile and lightweight aggregate in the three- state region. While some effort has been made to establish usable estimates for these commodities, nothing suitably reliable has been developed. On the surface, however, it would appear that consumption rates would be at or near the national average for drain tile and floor tile, but probably somewhat lower for lightweight clay aggregate. Summary of Regional Supply and Demand From the above analysis, it is indicated that the three-state region of Alabama, Georgia and Florida has a well-balanced and largely self-contained supply and demand situation with regard to structural clay products . This is so despite the fact that Florida is virtually a non-producer - the Florida market being served by the surplus production of Alabama and Georgia. The region is of such size and shape that almost all of it lies within a 250 mile radial distance of the center, with only the southern half of the Florida peninsula being beyond the reach of economic transportation. Further, the actual distribution of produc- tion facilities in the region places practically all of the points except peninsular Florida within only a hundred miles of a source of supply. Because of the ready availability of structural clay products, their usage in the region is common - again, with the exception of the Florida peninsula. The market within the region is growing, and regional consumption of structural clay products appears to have been slowly, yet steadily, increasing as a percentage of tota"! United States consumption. Despite this growth in the internal market, however, regional production capacity appears to be more than adequate to meet the demand. Currently, a relatively small, but still signifi- cant, amount of regional production is marketed outside the region - mostly in neighboring states, but some as far away as Nebraska, Wisconsin, Michigan and New York, Common brick, structural tile and drain tile are the principal structural clay commodities produced in the region, and also make up the greatest demand. Much of the ceramic tile and accessories, floor and wall tile, and other specialty products are brought in from outside the region. The use of lightweight clay aggregate in the re- gion is still relatively unknown. This, then, is the supply and demand picture in the general area surrounding Redevelopment Area A, in northwest Florida. On the sur- face it would seem that with the wide distribution of structural clay products plants in the region, and with the indicated present excess of production capacity over consumption, it would be difficult for the area to support another plant. On the other hand, there are factors which may make it possible for a new plant in a northwest Florida location to: (a) capture a sufficient market from the area already being served by existing plants 26 (b) produce commodities for which there is only limited local competition (c) penetrate the relatively unexploited market in the Florida peninsula. The realization of any one of these possibilities on a sufficiently large scale could make the difference between a successful and an unsuccessful operation. These possibilities and other factors having a bearing on ultimate feasibility will be evaluated in the following section of this report, MARKET POTENTIAL AND MARKETING PROSPECTS FOR A STRUCTURAL CLAY PRODUCTS PLANT ~ IN NORTHWEST FLORIDA" The Case for a Florida Plant Although the regional analysis above showed the structural clay products industry to be widely distributed throughout much of Alabama and Georgia, it revealed an almost complete lack of produc- tion facilities in Florida. The principal explanation given for this condition, of course, is the general unavailability of suitable raw materials in Florida. But across the northern part of the state there are clay deposits which are capable of being commercially developed for a clay products industry, as a brief review of earlier undertakings in this field will affirm. Brick production in Florida dates far back in the state's his- tory. Remains of old Spanish and English settlements indicate that brick was a common construction material in use at the time. By 1827, the brick and firebrick industry had grown to the point where these products were exported to other points along the Gulf of Mexico The locations of over fifty brick plants in production before and shortly after the War Between the States have been recorded. What may be called the modern era of brick manufacturing in Florida reached its peak in the early 1900' s, and continued until 1930. A sharp decline in production was experienced at the begin- ning of the national economic depression, and the Florida industry did not recover until 1939 - the last year for which production data are available. The last thirty-five years have been marked by a striking reduction in the number of brick plants in the state. From seven- teen in the 1920 's, the number has dropped to two in 1963 - one of which is a state-owned, non-commercial plant. Of the many reasons for this decline of the industry in Florida, probably the most critical were: (1) inferior or unsuitable raw materials locally, (2) the use of field kilns or poorly designed down-draft kilns which did not produce bricks of consistently high quality, (3) lack of sufficient raw material reserves locally, (4) insufficient market demands for the product within economical transportation distances, and (5) obsolete manufacturing equipment generally. 27 With the decline of the Florida industry, markets in the state were taken over by more distant, out-of-state producers „ No serious effort to re-establish the industry in Florida has been considered justified to date, but the discovery some years ago of high-quality clay deposits along the banks of the Apalachicola River in northwest Florida has created considerable interest in this possibility. All available data now indicate that these deposits are suitable for commercial use in both quality and quantity. With the availability of raw materials, a strong case on the surface can be made for the establishment of a structural clay products plant in this area. Several important factors support this contention: (1) being in the state of Florida would bv itself give a plant a favored position from a public relations standpoint for competition inside the state, and in some cases might provide an advantage in lower intra-state freight rates, (2) there are no major plants within 150 miles of the area, suggesting the possibility of a significant local market readily accessible from this point, and (3) the position decidedly south of any of the existing plants in Alabama and Georgia would provide a significant distance advantage in competing for markets in the Florida peninsula. The combination of these factors would seem to warrant detailed investigation into market potential and marketing prospects. Selection and Evaluation of a Plant Site For various reasons , some of them discussed earlier, it is usually desirable to locate structural clay products plants in the vicinity of raw material supplies. The location of the most suit- able clay deposits in the Redevelopment Area A would indicate place- ment of the proposed plant in the Bristol-Blountstown vicinity, on either side of the Apalachicola River. There is no town of signif- icant size in the immediate area. This site for a proposed structural clay products plant would have several advantages and several disadvantages. On the favor- able side, the Apalachicola River - a federally maintained naviga- tion project - offers possibilities for waterborne transportation, opening up new> marketing horizons. Also an advantage is the prox- imity of the site to the main pipe line of the Houston, Texas, Gas and Oil Corporation, supplying natural gas to the area. Not favorable, however, is the limited transportation network - both highway and rail - in the area, and also the fact that the area is rather sparsely populated and slowly growing, affording a local mar- ket only of relatively low consumption. Because all of Redevelopment Area A is basically similar in every aspect, there is little basis for discrimination in the selection of industrial sites in the area. This being the case, the location of the raw materials becomes the overriding factor, and the Bristol-Blountstown vicinity emerges as the logical site for the proposed structural clay products plant. 28 Identifying a Market Area As in the case with most commodities , there are countless factors - some difficult of explanation - influencing the market- ing patterns of structural clay products. Because of the uncer- tainties and inconsistencies in marketing behavior, it is impossi- ble to define the exact geographical area within which a given source of supply will find it possible to compete. Generally speak- ing, however, the price of the commodity at the point of demand will govern marketing ability. Since, for the purpose of this study, all elements of production and marketing cost are assumed to be equal to those of existing competition, the only variable contrib- uting to delivered commodity price is the transportation distance from the source of supply to the point of demand. For this reason, transportation distances are used as the single criterion for identic fying the area in which a Bristol-Blountstown plant could expect to be competitive in the structural clay products market. On this basis, the market area for such a plant would be defined by a theoretical line connecting points at which the transportation dis- tance from the proposed plant was equal to the transportation dis- tance from the nearest existing plant. Since there are no existing structural clay products plants to the south of the Bristol-Blountstown site, the extent of the probable market area into the Florida peninsula must be determined by practical transportation limits. Experience in this general area shows, for instance, that an active market for common brick cannot be generated in competition with concrete block if brick is priced higher than $40.00 - $45.00 per thousand. (In practical- ly any typical locality, the initial installed cost for an eight- inch brick wall will run twice that for an eight-inch block wall - and block is already well-established as a popular building material in lower Florida.) Although production costs are not available for competing plants, a survey of the market indicates that the average f.o.b. plant cost for existing producers in the three-state region is currently about $28.00 - $30.00 per thousand. Allowing ten percent of the delivered cost as profit for the local distri- butor, this would mean that no more than about $10.00 per thousand could be allowed for transportation and handling costs between the plant and the eventual outlet. This amount would provide for trans- portation up to a maximum of about 250 miles, which distance was used as the limit of the principal market area on the east and southeast. In addition to the primary market area for a Bristol-Blounts- town plant defined on the basis described above, consideration was given to the secondary market area to be served by a combination of waterborne and land transportation. Since the proposed plant would be constructed on or very near a navigable waterway, it would be possible to barge the finished product to the Gulf of Mexico and thence in almost any direction where a market might be found. 29 This favorable circumstance offers untold possibilities, but the most promising at this time is again peninsula Florida - where sup- ply problems have restricted the use of clay products, and which is easily accessible to waterborne traffic. Since Tampa is the major port serving the Florida Gulf coast, and is the center of a rapidly growing metropolitan area, this would offer the most logical choice as a destination and distribu- tion center for products barged from a Bristol-Blountstown plant. Once the product was unloaded at the Tampa dock, practical trans- portation factors would govern the area in which they could be effectively marketed. Because of the virtual monopoly concrete products now enjoy in the masonry construction industry of the area, it is probable that here clay products would have to cut the cost advantage of concrete products even more than in areas farther north where clay masonry is accepted and popular,, It appears now that about a fifty-mile radius from the Tampa unloading point would be the limit of this secondary market area. These two market areas, the area generally surrounding the proposed plant site and the separated area in the immediate vicin- ity of Tampa, will be referred to as the primary and secondary market areas, respectively, and are described in greater detail below. Extent and Characteristics of the Market Areas The primary market area - In locating the northern extent of the primary market area, several minor producing facilities - be- cause of the limited or sporadic nature of their operations - were generally ignored. Included in these were small brick plants at Newton, Alabama, and Thomasville, Georgia, and a drain tile plant at Geneva, Alabama. Probable major competition for the brick market was assumed to come from plants at Barth , Florida, Montgomery, Alabama, and Columbus, Macon and Augusta, Georgia. Plants at Fairhope , Montgomery and Phenix City, Alabama, and Macon, Milledge- ville, and Augusta, Georgia, are expected to provide major competi- tion for structural clay tile. Major drain tile plants were con- sidered to be those at Fairhope, Montgomery, and Phenix City, Alabama, and Milledgeville , Georgia. There is no significant floor and wall tile industry in the area. Lightweight clay aggregate plants in the area are so few as to be inconsequential in affecting the market area of another plant. Because the points of probable major competition in the three most important products are essentially the same, the configuration of the resultant primary market area boundaries is nearly identical. The line would pass between DeFuniak Springs and Crestview, Florida, on the west, curve eastward through Enterprise, Alabama, and con- tinue to the east and southeast through southern Georgia to the Atlantic seaboard north of Jacksonville, Florida (Figures 3 and 4 ) , On the south, the line along the 250 mile radial distance, would extend from the Gulf of Mexico to the Atlantic Ocean, passing near Brooksville, Leesburg, and Bunnell, Florida. 30 FIGURE 3 PRINCIPAL BRICK MARKET AREAS and LOCATION OF PRINCIPAL COMPETING SUPPUEI &&• 31 FIGURE 4 PRINCIPAL DRAIN TILE MARKET AREAS and LOCATION OF PRINCIPAL COMPETING SUPPLIEI .»** 32 The primary market area thus defined is about 32,000 square miles in areal extent, and has a current population of about 1,5S0,000. The area is largely rural, with Jacksonville being the only major metropolitan center. Other cities of significant size are Dothan, Alabama, Bainbridge, Moultrie, Thomasville, and Valdosta, Georgia, and Panama City, Tallahassee, St. Augustine, Gainesville, and Ocala, Florida. With the exception of the industrial and business center at Jacksonville, the economy of the area is primarily dependent on agriculture and forestry, with government industry and tourism important in isolated localities. A fairly good system of highways and railroads crisscrosses the area, connectinp numerous small towns (Figure 5). The area as a whole has not grown significantly in recent years, with the rate of population growth between 195Q and 1960 being only 22.3 percent, as compared with 31.1 percent for the three-state region, and 19.0 percent for the United States. The secondary market area - The secondary market area extends roughly from Brooksville on the north-where it is approximately contiguous with the primary market area - curving southward to Winter Haven on the east, and thence to Sarasota on the south (Figures 3 and 4). Somewhat in contrast with the primary market area described above, the secondary market area is much smaller in size and is characterized by a far more dynamic economy and much faster rate of population growth. Only 4,500 square miles in size, the secondary market area con- tains one of the major population centersof Florida. Current popu- lation is about 1,190,000, only slightly less than the much larger primary market area. Even more important is the impressive growth rate, which reached 8 5.0 percent for the period between 19 50 and 1960, and is expected to continue strong for some time to come. This healthy growth is supported by an expanding economic base in which industry, tourism, agriculture, mining, government and commerce all play an important part. Population in the area is highly concentrated. In addition to the Tampa-St. Petersburg metropolitan center, there are other cities of significant size including Clear- water, Lakeland, Winter Haven, Bartow, Plant City, Bradenton and Sarasota. Outside the market areas - Obviously, all of the output of a Bristol-Blountstown clay products plant would not necessarily be marketed in the areas defined and described above. Under certain circumstances, products could be marketed hundreds of miles away in almost any direction. Especially to the north, there would un- doubtedly be considerable exchange of markets with the various plants already existing in that area. The ^primary and secondary areas as defined, however, are the principal areas in which a Bristol-Blountstown plant could market its products from a prac- tical standpoint, and could expect to enjoy a strong competitive position . 33 50 I APPROX. SCALE FIGURE 5 RAILROADS and PRINCIPAL HIGHWAYS, FLORIDA, SOUTH GEORGIA, SOUTH ALABAMA ./x*> 34 Comsumption and Demand in the Market Areas Total consumption and rates of consumption of structural clay products in the market areas indicate the demand which will determine the justification for an additional plant. It matters little how competitive such a plant might be in the area if the volume of demand is not sufficient to support a production operation of economical size. Because of the basic importance of this factor, a very care- ful effort was made to ascertain the amount of structural clay pro- ducts currently used in the market areas and to identify trends in the use of these products established in the recent past. As back- ground for this important phase of the study, the approach used for gathering this information is discussed briefly below. Survey Methodology - Since there are no compiled figures for consumption or use of structural clay products at the local level, it was necessary that some type of survey or canvass be made of the major suppliers and users of these products within the iden- tified market areas. For this purpose, it was assumed that the principal distribution points for the products would be the cities and towns with a population in excess of 5,000. Spot checking of many of the towns of smaller size revealed that they contained, in fact, very few marketers or major users of structural clay products. Classified business directories in local telephone books were consulted for listings of possible distributors or major users of structural clay products. Most of these were found under the headings of "building materials" for suppliers, and "general con- tractors" for users. In all, this process disclosed 175 possible major suppliers and 371 possible major users in twenty-three cities and towns in the primary market area. The secondary market area produced 168 possible suppliers and 238 possible users in twelve cities and towns. Since the scope of the study would not permit a hundred per- cent canvass of sales and purchases in the market areas, thirteen of the towns in the -primary market area were selected on the basis of their geographic distribution and size to represent the area. In the secondary market area, only two - Tampa and St, Petersburg - serving well over three-fourths of the area population, were selected Two approaches were used for the survey, to serve as a , check on each other. In the first, a twenty percent random sample - but no less than three in the case of the smaller towns - of all suppliers and contractors was used. In the second, all of the highest volume dealers and users, identified by others in the business, were can- vassed. Between the two methods, a hundred percent sample was actually taken for some of the smaller towns. Care was exercised to prevent duplication in reported figures for sales and purchases. The survey was conducted by direct interview with cognizant representatives of the selected builders supply houses and general contracting firms. Questions were asked concerning purchases, sales and use of five specific types of structural clay products: (a) common and face brick (b) structural clay tile 35 (c) quarry tile (d) drain tile (e) lightweight clay aggregate Incidental information on sources of supply, transportation, prices, marketing trends, customer preferences, and other factors bearing on the marketing prospects for structural clay products were also solicited. Consumption and Demand - Brick - Brick is by far the most popular structural clay product used in the market areas, and the one that offers the best possibility for justifying a plant in the area. Brick is still the most prestigious wall material for resi- dential construction, and the great variety in which it is offered makes it useful for many architectural applications «, One of the types of brick in greatest demand in both market areas is the used, or reclaimed, bricko A survey made in a typical city in the primary market area revealed that used brick was used at least to a major degree in almost half of the brick masonry dwellings constructed in 1962, While this fact has a profound impact on the potential market for new brick, the actual consumption rate for this commodity is difficult to ascertain. It is believed, however, that the continuing use of used brick will be held in balance by the supply available at any given time, and that the estimated market for new brick will not be further invaded c In addition to the survey reports, helpful information in estimating brick consumption in the primary market area is avail- able from at least three other sources : an estimate for Florida by major market area, made in 1949; an estimate for north Florida area between Panama City and Lake City, made in 1959; and an estimate made for an area inclusive of but somewhat larger than the primary market area, made about 1960. Analysis of all available data in- dicates that most of north Florida, southeast Alabama and south Georgia use brick at a rate very close to the national average, while the Jacksonville market area is considerably higher than the national average and most of peninsular Florida much lower. Figures adjusted from actual reported consumption are given below. Reported Brick Population Per Capita _ Consumption Rate Primary market area Jacksonville market Remainder Compared with the national per capita average brick consumption of 35-40, and the three-state regional consumption of about 40 per person, the figure for the rural part of the market area appears valid, The figure for the Jacksonville area seems high in the light of empirical observation, but there are several factors which might enter 36 102 ,000 ,000 1 ,550 9 000 66 75 ,000 ,000 750 ,000 100 27 ,000 ,000 800 ,000 34 into the explanation. First, because it is a rapidly growing metropolitan area, it stands to reason that it would be an actively promoted market. Competition would tend to drive the prices down and stimulate greater use. The fact that one major producer barges brick from Augusta, Georgia, to Jacksonville would undoubtedly be a contributing factor in local marketing economics. Finally, there is a possibility that all of the volume reported for the area is not actually consumed in the area, and that a considerable portion is transshipped to other points outside the immediate Jacksonville market area, For comparison, the consumption rates indicated for various parts of the primary market area by the three estimates referred to earlier are given below. Brick Consumption Population Per Capita 1949 estimate 95,000,000 2,750,000 35 1959 estimate 10,000,000 362,000 28 1960 estimate 100,000,000 2,500,000 40 On the basis of this overall analysis, it seems reasonable to assume that a strong, active brick market in the Jacksonville area, combined with average consumption in the rest of the area, would produce a total average consumption for the primary market area of at least 75,000,000 units per year. In the secondary market area, the present demand for brick is substantially lower, resulting in correspondingly lower consumption. The adjusted total consumption reported for the Tampa-St. Petersburg area was 15,000,000 units, which would reduce to a per capita aver- age of about 15. The only other estimate available for comparison is the one made in 1949, which assigned 25,000,000 units as the Tampa market area's share of estimated state consumption. With a population of approximately 700,000 for that year, this would in- dicate a per capita rate of 36 units, or the same use rate as esti- mated by that study for the state as a whole. It is readily apparent from statements of informed persons in the area that this part of Florida is not a heavy consumer of brick or other structural clay products, and that an estimate comparable to the state average would be too high. On the other hand, the same sources of information would indicate that the 15,000,000 units reported by the survey is a low figure. It would appear, then, that present consumption of brick in the secondary market area could be put conservatively at 25,000,000 units per year. Consumption and Demand - Structural tile - Consumption of structural clay tile is rather minor in both market areas, and appears to be continuing to decline in usage. Formerly .used more extensively in the construction of non-residential buildings, it has been largely 37 displaced by concrete block. Out of more than one hundred inter- views with major suppliers and users of structural clay products, only six in the primary market area and none in the secondary market area reported sales or use of structural clay tile. Of these, only one - a supplier in Jacksonville - reported a significant volume. From all indications, it is doubtful that total consumption would exceed 5,000 tons per year. At least half of this would be in the Jacksonville area, and almost none at all in the secondary market area. It must be concluded that there is very little demand for this commodity in the two market areas. Consumption and Demand - Quarry tile - Because most quarry tile is purchased and installed by tile contractors , very little use of this product was evidenced by the interview survey of major building materials suppliers and general contractors. Persons in the trade, however, indicate that this commodity enjoys a fairly stable position in the area, although still of only minor importance compared with other finish floor materials. Quality improvements, wider variety and reduced costs in finished concrete, terazzo and vinyl tile products have prevented any major increase in the use of quarry tile. No quantitative estimate of consumption is possible from the limited data produced, but it is known that combined usage in the two market areas is inadequate to have a significant effect in the final determination of plant feasibility. Consumption and Demand - Drain tile - Clay drain tile is a commodity generally distributed through a variety of outlets. This fact, combined with the inability of many builders' supply dealers to estimate their sales of this product, has made it impossible to ob- tain reliable consumption figures from the direct interview survey. For this reason, an alternative method of estimation was employed. Drain tile in this area is used almost exclusively for con- struction of septic tant drain fields. Florida State Board of Health figures, compiled by counties, show that there were 2,915 septic tank systems installed in the Florida portion of the primary market area in 1962, Excluding the Jacksonville metropolitan area as being non- typical, the rest of the north Florida area was used as a basis for developing average figures for the Georgia and Alabama portions of the primary market area, which are similar in most respects to neighboring parts of Florida. By this method, it is estimated that there were roughly 4,500 septic tank systems installed in the primary market area in 1962. At an average of 125 feet of drain field per system, this would represent usage of some 562,000 linear feet of drain tile. Similar procedure applied to 6,500 septic tank systems in the secondary market area would result in another 812,000 linear feet , Rapid development and expansion of municipal and other sewer- age systems has resulted in a steady decline in the number of septic tank systems installed in the area in recent years, despite an overall increase in population. This has reduced the demand for 38 drain tile proportionately. It is expected, however, that the trend will stabilize and possible reverse when municipal systems have reached their practical limit of coverage. Septic tank use in rural areas should then create a fairly steady, but smaller than present, demand for drain tile. Consumption and Demand - Lightweight clay aggregate - Expanded clay aggregate is still a relatively unknown commodity in the market areas. Of the more than a hundred suppliers and users of structural clay products interviewed, only three reported handling this product, and these only in insignificant amounts. This limited use can be attributed in part to a general unfamiliarity with the product. While this could be overcome to a large extent by effective pro- motion, a more serious limitation to expanding the market potential for lightweight clay aggregate is its high cost in relation to other lightweight aggregates. Plant prices for lightweight clay aggre- gate, for instance, will run about twice as much as comparable prices for expanded slag, readily available from the Birmingham areas of Alabama, where it is produced as a by-product of the steel industry. This price differential effectively restricts use of the more expensive clay product to certain highly specialized purposes. Another factor which has limited the use of lightweight aggregate in general in the two market areas is the relative absence of high- rise buildings in the construction requirements of the area. Despite the rapid increase in the use of lightweight clay aggre- gate in the national picture, there is no indication that a market of significant proportions could be developed in this area at the present time. Only the metropolitan centers of Jacksonville and Tampa would appear to offer promise of a potentially good market, and competition from less expensive alternative products would present a serious, possibly insuperable, obstacle to effective promotion. It thus appears that there is inadequate demand for a lightweight clay aggre- gate in prospect to warrant any detailed attention to manufacturing possibilities at this time. Conclusion as to Marketable Commodities From the summary of 1 consumption and demand presented above, it appears that only two of the five structural clay products considered offer sufficient market potential to conceivably justify establish- ment of a manufacturing plant in Redevelopment Area A, Brick, be- cause of its significant volume of demand and its continuing popu- larity as a building material, is one possibility, and drain tile, because of a fairly universal and steady demand, is another. The demand, either present or potential, for structural clay tile, quarry tile and lightweight clay aggregate in considered insufficient to contribute measurably to justification of a manufacturing plant, and these commodities will be given only incidental attention in the re- mainder of the report. As brick and drain tile have been identified as the two struc- tural clay products which offer the greatest promise .of supporting a manufacturing operation in the area, separate market area maps 39 (figures 3 and 4) have been provided for each commodity to permit easy reference during the following analysis. Although the market areas are essentially the same, they differ somewhat along the northern perimeter according to the location of existing competition. Within the respective market areas for these two commodities is an estimated present demand for 100,000 bricks and 1,500,000 linear feet of drain tile. The key to marketing feasibility for a manu- facturing plant in the Bristol-Blountstown area lies in the ability of such a plant to capture a sufficient portion of this potential mar- ket to support an operation of economical size,, Prospects for Capturing the Marke t Factors influencing marketing ability - If a structural clay products industry is to be established successfully in Redevelopment Area A, it will have to capture a significant portion of the area market already being supplied by existing plants. Trends in the industry are toward larger capacity plants, and experience would in- dicate that a new operation should have a capacity in excess of 100,000 brick equivalents per day in order to produce on an economi- cal basis and on an equal footing with existing competion. This would mean that of the present demand in the primary and secondary market areas of 100,000,000 bricks per year, a Bristol-Blountstown plant would need to capture something on the order of 30,000,000 to 35,000,000 or 30 percent to 35 percent. The actual figure can be flexible to a considerable degree, of course, but the illustration given here points up the magnitude of the incursion which a new plant must make in the established market of existing plants. For an indication of how successful the new plant might expect to be in this competitive endeavor, several factors must be considered. A survey of major purchasers of structural clay products re- veals that among the most important factors influencing their se- lection of suppliers are: quality of product, price, service, and availability of special types of products, such as a particular color, finish or size. Interestingly enough, price does not appear to be the predominant consideration. Rather, quality of the product and service provided by the supplier are generally regarded as more im- portant. Such opinion is colored by experience in an area supplied from many sources, however, with consequently little variation in price. It undoubtedly would not hold true to the same extent if the price differential between two reasonably acceptable products were substantial. While quality and type suitability of the product are deter- mined in the manufacturing and usually speak for themselves, ser- vice is an aspect of making the finished product available to the buyer and, as such, is far more complex and unpredictable in its effect on the decision to buy. When other factors are equal - as they frequently are - service can swing the balance to one side or the other. Thus, while having nothing at all to do with the product per se , it is probably the single greatest variable in the marketing 40 process. Among the specific service desires expressed by buyers, the following are among the most important: (1) delivery of the product when and where needed, (2) shipment of odd lots without undue delay and price penalty, (3) allowances and quick adjustment for chipped and broken products, (4) promotion and advertising help, and (5) assistance with special design and other technical problems in the use and application of the products. Obviously, to maintain a competitive position, a supplier has to be willing to do as much as possible for the customer. Of all the factors influencing the decision to buy, however, the one most tangible and subject to comparison between competing products is price. The delivered price of the commodity is made up essentially of four elements: manufacturing cost, marketing cost, delivery cost and profit. All of these elements are more or less fixed as to any given product and point of delivery. Delivery costs, of course, will vary greatly for different destinations and methods of transportation, and the profit element may be varied considerably - depending on the other three elements - in order to stay competitive. In some cases it may be desirable to cut profit virtually to nothing in favor of maintaining market outlets and volume of sales . There are many other factors which have a bearing on customer preferences. Business tie-ins, personal friendships, state or sectional loyalties and the element of chance all play a part in influencing the customer's decision. These and the countless other similar factors are highly uncertain and intangible, however, and their full impact cannot be ascertained or evaluated. As mentioned at the outset, for the purpose of this study all elements of cost must be assumed to be essentially the same for a Bristol-Blountstown plant as for existing plants in the area. In addition, it must also be assumed that other marketing factors such as quality of product, customer services, etc., are at parity with existing competition. Tentative analysis would indicate this to be so, but only on further investigation of these specific points, and, to a great extent, actual operating experience can a final determination be based. With these assumptions of equality of conditions between a Bristol-Blountstown plant and existing plants now serving the market area, only the variable of transportation cost from the plant to the market stands out as a significant factor in marketing ability. Because transportation costs are relatively high for structural clay products, however, and make up a large part of the delivered price in most cases, this factor alone will have tremendous effect in re-shaping marketing patterns in the entire area. Transportation costs - which are a function of distance and method of transportation - are thus used as the primary basis for estimating prospects of mar- keting success for a structural clay products plant located in the Bristol-Blountstown area. Existing competition and marketing patterns. The geographic 41 distribution of structural clay products plants in the Alabama- Georgia-Florida area are discussed in the regional analysis and is shown on figure 2. Almost every one of these plants markets a por- tion of its output in the market area identified for the Bristol- Blountstown site. Some command a larger share of this market than others, for a variety of reasons. Some have been successful in supplying particular markets ostensibly more favorabley located to other sources of supply. The marketing patterns resulting from this actual experience point up the nature and source of major com- petition which can be expected by a Bristol-Blountstown site. Of the estimated 100,000,000 units per year present demand for bricks in the primary and secondary market areas, 50 percent is attributed to the Jacksonville distribution area. Because of its large volume and steady increase in demand, Jacksonville is a prime market outlet. At the present time, plants in Augusta, Georgia, supply about half of this market. A significant factor contributing to this situation is the large distribution center maintained in Jacksonville by one of the Augusta plants. This local distribution center is served by barge transportation, and lower shipping costs have given this company a decided advantage in delivered commodity prices. It is of importance to note that Augusta, located on the Savannah River, has the only plants of consequential size in the area with ready access to the Atlantic waterways system. In addition to Augusta, Macon and Columbus, Georgia, also supply a substantial part of the Jacksonville market, relying pri- marily on rail transportation. These three sources together prob- ably account for 75 percent to 80 percent of the Jacksonville de- mand, with the remainder being supplied by numerous other plants in relatively insignificant amounts. While Jacksonville may be something of a special case, it is still surprisingly typical of the rest of the primary market ^r-ea in its supply pattern. The essential difference between the two patterns is in the predominant sources of supply. For twelve principal distribution points, other than Jacksonville, in the primary market area, representing practically all of the remain- ing demand, Macon and Columbus account for about 7 2 percent of the supply. Nine other specific sources of supply were reported as sharing in this market. The distribution of the market for a typical year is illustrated in the following figures. TABLE 7 SOURCE OF SUPPLY FOR REPORTED SONSUMPTION BY SAMPLED DEALERS AND USERS OF BRICK IN THE PRIMARY MARKET AREA (IN BRICK EQUIVALENTS) " Source ^ Brick tlnits % of Total Macon, Georgia 4,476,500 (41.4%) 42 Source Brick Units % of Total Columbus, Georgia 3,312,250 (30.6%) Augusta, Georgia 884,000 ( 8.2%) Selma, Alabama 749,250 ( 8,9%) Thomasville, Georgia 480,000 ( 4.4%) Birmingham, Alabama 352,000 (3.3%) Holly Springs, Mississippi 62,500 ( 0.6%) Jackson, Mississippi 60,000 ( 0.6%) Montgomery , Alabama 57,500 (0.5%) M.'llddgeville, Georgia 50,000 ( 0.5%) Newton, Alabama 12,000 ( 0.1%) Unknown or Unidentified 310,000 ( 2.9%) 10,507,000 (lOOToTT The scattered distribution points in the rural portion of the primary market area are presently supplied primarily by truck, although rail is still used extensively, especially in the more distant points such as Gainesville. As with Jacksonville and the primary market area, the second- ary area is supplied for the most part by plants in Columbus, Macon and Augusta, with the first two accounting for a great majority. Other sources of supply are represented primarily in the marketing of special type products. Purchases from as far away as Texas and Ohio were reported. The secondary market area, being some 350 miles from the closest major producing plant, is supplied almost exclusive- ly by rail. For drain tile, the other principal commodity under considera- tion, a somewhat different pattern emerges. Because quantitative data on this product are incomplete, it is not possible to make an exact percentage break -down of sources of supply. Reported infor- mation, however, reveals that Birmingham, Alabama, Columbus, Milledge- ville and Harlem (immediately west of Augusta), Georgia, and Co 1 nTnbia, South Carolina, are all significant suppliers. Among these, Milledge - ville stands out as being by far the major source of supply for otn the primary and secondary market areas , accounting for something in excess of 50 percent of the total market. Except for the extreme westerly part of the primary market area, where Birmingham predomin- ates, Milledgeville is universally the principal competitor in this industry. Drain tile is shipped almost exclusively by truck, regardless of point of origin and the transportation distance involved. Only in the case of Tampa-St. Petersburg and Jacksonville, both major distribution centers, was any rail transportation of this product reported. From this brief analysis, it is obvious that major competition in both market areas can be expected from plants in Columbus, Macon and Augusta in the case of brick, and from Milledgeville in the case 43 of drain tile. Other producers, even some considerably closer than these major sources, play a relatively minor role in meeting pre- sent demand, except in the case of certain specialty products. Columbus, Macon and Augusta each have two brick plants of appreciable size, and these firms are all well established in the area and able to compete with virtually any possible source of supply. The large drain tile plant in M^* llsdgeville is similarly well situated with regard to its present markets. Any significant inroads in the en- trenched market of these producers, especially by a plant of smaller capacity, will almost certainly have to be made on the basis of trans- portation cost advantages. This important aspect of the marketing process is explored in detail in the following section. Transportation - a comparative analysis . The primary market area - The proposed Bristol - Rlountstown plant site is so located with respect to its primary market area that conventional, overland methods of transportation would be used. The possibilities, of cource , include rail and the several varying ar- rangements for truck transport. The rail and highway networks of the area are shown on figure 5. Rail connections serving the Bristol-Blountstown locality are less than desirable, but for the longer hauls in which rail transportation would be employed this may not present a major handicap. Also, it is not wholly incon- ceivable that a new track, linking Bristol with the Seaboard Air Line track west of Tallahassee, could be justified if rail trans- portation ever took on an aspect of greater importance. Other than this, however, there is no apparent deficiency in physical facilities that would place the proposed plant site at a serious initial dis- advantage . Most of the primary market area is supplied by truck from the existing competitors, and it is fully indicated that this means of transportation would have to be employed by a Bristol-Blountstown plant. As discussed earlier in reviewing the national transportation trends in the industry, trucks offer several distinct advantages over rail for relatively short hauls, and it was on the basis of an assumed 250 mile practical distance limitation for truck hauling that the southern boundry of the primary market area was defined. Primary among the advantages of truck transportation, of course, are (1) the availability of special equipment, to facilitate loading and unload- ing as well as to provide more efficient transportation, (2) the flexibility permitted by individual dispatching on wholly independent schedules, (3) the susceptibility to ownership and/or control by in- dividual firms, (4) the ability to deliver to any selected destina- tion, including job-sites, (5) a reduced economic loss factor for delivery in less-than carload lots, and (6) more direct routing with less loss of time in transit. Rail transportation is still used extensively for shipping long distances and to large distribution centers where time in transit and point of delivery are of less consequence. 44 In addition to the trend from rail to truck transportation generally, there has been another significant development in the use of contract haulers or individually owned or leased trucking equipment. This arrangement not only amplifies the inherent advantages of truck transportation enumerated above, but also results in considerable reduction in cost over the use of common carriers . With these transportation developments in the industry, virtually all of the producers with which a Bristol-Blountstown plant would compete now rely on individually owned, rented or leased trucking equipment to serve the primary market area. Assuming that a Bristol-Blountstown plant would employ the same type of arrangement, and that the equipment would be available on similar terms, then distance alone would be the factor which would determine relative differences in transportation costs. The amount of the difference would additionally be determined by the cost of operating the trucking rig. Within the framework of the ablve assumption, the mileagt. tables given below will indicate where the relative transportation cost advantage lies in supplying principal distribution points in the primary market area. Although, in fact, any one of several major existing suppliers may prove to be the principal competitor for a particular market because of other factors not related to transportation, the closest existing plant is used as the assumed competitor for this analysis. TABLE 8 RELATIVE TRANSPORTATION ADVANTAGE AS INDICATED BY COMPARATIVE HIGHWAY DISTANCES TO PRIMARY MARKET AREA DISTRIBUTION POINTS FROM PROPOSED PLANT SITE AND CLOSEST EXISTING COMPETION Brick Distribution Point Dothan, Ala. Bainbridge, Ga. Moultrie, Ga. Valdosta, Ga. Jacksonville, Fla Gainesville, Fla. Ocala, Fla. Tallahassee, Fla. Panama City, Fla. Barth , Fla. De Funiak Springs , Barth , Fla. Fla, Closest Existing Competition Columbus , Ga Columbus, Ga Columbus, Ga Macon, Ga. .Macon , Macon , Macon , Ga Ga Ga Columbus , Ga Distance From Existing Bristol- Competition Bl ountstown Ton 128 125 149 225 260 298 164 133 94 -6F 54 110 121 217 192 217 47 51 85 Bristol- Blountstown Advantage -38 - 74 - 15 - 28 - 8 - 68 - 81 -117 - 82 - 9 45 Drain Tile Closest Distance From Br; istol- Distribution Existing Existing Bristol- Blountstown Point Competition Competition Blountstown Ad' vantage Dothan, Ala. Columbuo , Ga 106 66 - 40 Bainbridge, Ga. Columbus, Ga. 130 54 - 76 Moultrie, Ga. Columbus, Ga. 133 110 - 23 Valdosta, Ga. Columbus, Ga. 176 121 - 55 Jacksonville, Fla Harlem, Ga. 233 217 - 16 Gainesville, Fla "arlem, Ga. 309 192 -117 Ocala, Fla. Harlem, Ga. 346 217 -129 Tallahassee, Fla Columbus, Ga. 172 47 -125 Panama City, Fla. Fairhope, Ala. 151 51 -100 De Funiak Springs , Fairhope, Ala. 115 85 - 30 Fla. All of the selected distribution points in the table above are more favorable located, on the basis of highway distance, to the Bristol-Blountstown site. Since the perimeter of the primary market area is essentially traced by points included above, all other points in the area would thus be at least as equally favor- ably located. The relative advantage for the Bristol-Blountstown site in the brick market varies from 117 miles for the Tallahassee distribution point to only eight miles for the Jacksonville distri- bution point. Assuming an average transportation cost of 3£ per ton/mile - considered a probably minimum for a medium distance haul - the magnitude of the cost advantage would be indicated by the following figures for each of the two principal commodities. Bricks (per 1000) Distribution Distance Cost Distance Co< :;-!- Point Advantage Advantage Advantage Ad' $ vantage Dothan, Ala. 38 miles $ 2,28 66 miles 3 .88 Bainbridge, Ga. 74 miles 4.44 54 miles 1,62 Moultrie, Ga. 15 miles .90 110 miles 3.30 Valdosta, Ga. 28 miles 1.48 121 miles 3.63 Jacksonville, Fla. 8 miles .48 217 miles 6.51 Gainesville, Fla. 68 miles 4.08 192 miles 4.76 Ocala, Fla. 81 miles 4.86 217 miles 6.51 Tallahassee, Fla. 117 miles 7.02 4 7 miles 1.41 Panama City, Fla. 82 miles 4.92 51 miles 1.03 De Funiak Springs, 9 miles .54 85 miles 2.55 Fla. 46 The figures above reveal that a Bristol-Blountstown plant would have a substantial transportation cost advantage over existing com- petition in serving most of the distribution points in the brick market of the primary market area^ but a relatively negligible ad- vantage in the important Jacksonville area. Still, with other fac- tors being essentially equal, any savings in transportation costs would enhance the proposed plant's competitive position. The degree of transportation cost advantage must be taken into consideration in weighing the chances of a Bristol-Blountstown plant in capturing the market from existing suppliers. Although it is highly unlikely that a significant portion of the market could be served on a competitive basis by use of common carrier truck transportation, the applicable inter-state and intra- state rates are tabulated below to provide a second comparison of the relative transportation cost advantage to be enjoyed by a Bristol* Blountstown plant, TABLE 9 TRUCK TRANSPORTATION COST ADVANTAGE TO PRIMARY MARKET DISTRIBUTION POINTS FROM PROPOSED PLANT SITE AND CLOSEST EXISTING COMPETITION (Based on Fixed Common Carrier Rates) Bricks (Per 1000) Distribution From Bristol- Point From Closest Competition Blountstown Advantage Dothan, Ala. Columbus, Ga. $ 20,00 uoinan, Aia. uoiumDus , ua. t? zu.uu Bainbridge, Ga. Columbus, Ga , 22,80 Mcultrie, Ga. Columbus, Ga. 2 3.20 Valaosta, Ga. Macon, Ga. 24.40 Jacksonville, Fla* Macon, Ga. 30.00 31.20 33.20 25.20 j. anuiiiu v^ J- v. y , 1-i.u. uui w 1 1 , i-iut J_y»ZU DeFuniak Springs, Barth, Fla. 15,80 Fla. Mcultrie, Ga. Columbus, Ga. Valaosta, Ga. Macon, Ga. Jacksonville, Fla* Macon, Ga. Gainesville, Fla. Macon, Ga. Ocala, Fla. Macon, Ga. Tallahassee, Fla. Columbus, Ga , Panama City, Fla. Barth, Fla. DeFuniak Springs, Barth, Fla. Fla. $ 18.00 $ -2,00 20.00 -2,80 23.20 -0- 24.40 -0- 25.40 -4,60 24.20 -7,00 25.40 -7,80 11.00 -14,20 11.00 8,20 15.00 ~,80 Drain Tile (Per Ton) Dothan, Ala. Columbus, Ga, $ Bainbridge, Ga. Columbus, Ga. Moultrie, Ga. Columbus, Ga, Valdosta, Ga. Columbus, Ga. Jacksonville, Fla. Harlem, Ga. Gainesville, Fla. Harlem, Ga. 10.00 $ 9.00 -1,00 11,40 11.00 -.40 12.20 11.60 -,60 12.80 12.20 -,60 15.60 12.70 -2,90 16.00 12.10 -3,90 47 Distribution Point TABLE 9 continued From Bristol- From Closest Competition Blountstown Drain Tile (Per Ton) continued Advantage Ocala, Fla. Tallahassee, Fla. Panama City, Fla. DeFuniak Springs, Fla. Harlem, Ga. Columbus , Fairhope , Fairhope , Ga. Ala. Ala. 17.00 12.70 14.00 11.20 12.70 5, 50 5.50 7.50 $ -4.30 -7,20 -8.50 -3.70 Becuase rail transportation may very well be employed under certain circumstances, especially in supplying such distant points as Jacksonville, Gainesville and Ocala, a comparison of published rates for this type of carrier is presented in the following table. TABLE 10 RAIL TRANSPORTATION COST ADVANTAGE TO PRIMARY MARKET DISTRIBUTION POINTS FROM PROPOSED PLANT SITE AND CLOSEST EXISTING COMPETITION Distribution From Bristol- Point From Closest Competition Blountstown Advantage Dothan , Ala. Columbus, Ga. $ 8.20 $ 7.90 -.30 Bainbridge, Ga. Columbus, Ga. 8.20 7.80 -.40 Moultrie, Ga. Columbus, Ga. 8.20 8.20 t0- Valdosta, Ga. Macon, Ga. 9.40 9.40 ^0- Jacksonville, Fla. Macon, Ga. 10.20 10.20 t0- Gainesville, Fla. Macon, Ga. 13.00 11,80 -1.20 Ocala, Fla. Macon, Ga. 13.40 13.00 -.40 Tallahassee, Fla, Columbus, Ga. 9.40 7.80 -1.60 Panama City, Fla. Barth, Fla. 9.80 7.80 -2.00 DeFuniak Springs, Barth, Fla. 8.10 8.00 -.10 Fla. Drain Tile (Per Ton) Dothan, Ala. Columbus, Ga. 7.20 6.20 -1.00 Bainbridge, Ga. Columbus, Ga. 7.50 6.50 -1.00 Moultrie, Ga, Columbus, Ga. 7.90 7,50 -.40 Valdosta, Ga. Columbus, Ga, 8.30 7.90 -.40 Jacksonville, Fla. Harlem, Ga, 9.90 9.70 -.20 Gainesville, Fla. Harlem, Ga, 10.30 9.70 -.60 Ocala, Fla. Harlem, Ga. 10.90 10.30 -.60 Tallahassee, Fla. Columbus, Ga. 8.10 6.50 -1.60 Panama City, Fla. Fairhope, Ala. 9,10 6.50 -2.60 De Funiak Springs, Fairhope, Ala. 7,70 7.00 -.70 Fla, 48 Although differing considerably from one method of transporta- tion to another, these several comparisons of probable freight costs all are in substantial agreement as to the relative advan- tage which a Bristol-Blountstown plant could be expected to enjoy in the primary market area. There are a very few exceptions in the case of common carrier transportation, due to the structure of published rate schedules. These exceptions would have little effect in the total marketing picture, however, because of the probable major reliance on transportation other than common carrier. The secondary market area - Since the secondary market area is from 3 50 to 450 miles from existing sources of supply, and would be from 250 to 350 miles from the proposed Bristol-Blountstown plant, the question here is not so much one of competition between sources of structural clay products, but one of competition between structural clay products and locally available alternative products. With al- most a hundred mile distance advantage over the closest existing competition, the Bristol-Blountstown site would obviously be in an excellent position to invade this market. At this distance, however, the advantage in actual mileage represents very little advantage in freight rates, as the following figures will bear out. Rail Freight Costs per 1000 Bricks to Tampa (1000 brick=U000 lbs) From Bristol-Blountstown $14.20 Closest existing source 14.60 Truck transportation costs at this distance run too high to leave the commodity competitive with concrete products, as revealed below. Truck Freight Costs per 1000 Bricks to Tampa (1000 bricks=4000 lbs) Common Company Controlled Carrier From Carrier (@ 3C ton/mile) Bristol-Blountstown $ 30.00 $ 17,52 Closest existing source 36.80 22.98 In order to most effectively exploit the secondary market area, it will thus be necessary to deliver the structural clay commodities at a lower overall cost. This brings up the possibility of using barge transportation from the Bristol-Blountstown site, and the es- tablishment of a major distribution center at Tampa in much the same manner as the Augusta Merry Brothers frim has done so successfully at Jacksonville. From the Tampa port, the rapidly growing area with- in approximately a 50 mile radius could be served by truck transportation, 49 staying well within the cost dictated by the economics involved. In order to utilize barge transportation from the Bristol- Blountstown site, several conditions must be fulfilled. Barge op- erators now equipped to handle brick shipments from the Bristol- Blountstown area to the Port of Tampa have indicated that shipments could be made at a cost of $1.50 to $2.00 per ton, exclusive of port charges, provided that: (1) a return cargo was available, (2) sufficient work is continued in the Apalachicola River to maintain an adequate channel depth, (3) approval is granted to the carrier by the appropriate regulatory agency, and (H) adequate facilities for docking and loading are made available. It appears that all of these conditions could be met. The shipment of phosphate fertilizer would seem to offer a possibility as a return cargo. Channel depth in the river is now maintained at eight feet and contracts have been let to increase the controlling depth to nine feet. At present no bricks are shipped on the river and it is not known whether the Interstate Commerce Commission would claim jurisdiction over barges travelling outside the territorial waters of Florida or whether such shipments would be regulated by the State. Docking and loading facilities would have to be made available, either by municipal port authorities or by the plant owners. Assuming that the necessary conditions are met, it would appear that brick could be barged to a Tampa distributing point for a cost of $5.00 to $6.00 per thousand, as compared with $14.20 for rail and $17.52 for truck. Similar savings could be realized for drain tile. Brick could then be delivered by truck to points within a fifty mile radius at an additional cost of $3.00 to $4.00. Even with the additional costs of a yard or other storage facilities in Tampa, the total delivered cost of the product by the barge-truck method should still undercut existing costs enough to enable the capture of a large portion of the present brick and drain tile mar- ket in the secondary market area. Perhaps even more important, it would place these clay products in a far better position to compete with similar concrete products which are now used extensively in the area. Although there is no experience on which to base a firm con- clusion, the possibilities offered by this method of serving the secondary market area appear sufficiently real to justify full con- sideration as a part of the overall marketing feasibility for a Bristol-Blountstown plant. Estimate of Probable Market Share In the foregoing analysis, a primary and a secondary market area for a Bristol-Blountstown structural clay products plant were identified - largely on the basis of transportation factors. Two products, brick and drain tile, were selected on the basis of de- mand as offering the greatest possibilities for establishment of a 50 successful industry. Current actual demand for these two commodi- ties was estimated at 100,000,000 bricks per year and 1,500,000 feet of drain tile per year for the two market areas combined „ Before final marketing feasibility can be established, a careful estimate must be made of the amount of this demand which can reasonably be expected to be captured by a new plant operating from the Bristol- Blountstown site. For the purpose of estimating probable marketing success, comparative commodity prices - as influenced in this case by the important variable of transportation costs - offer the most reliable indication. Even within the area where a Bristol-Blountstown plant has a distinct transportation cost advantage, however, there are two circumstances which render capture of the entire market imposs- ible from a practical standpoint. First, the wide diversity of pro- ducts on the brick market militates against a single plant with a broad enough operation to satisfy all requirements. Second, in cases where an acceptable product is available from more than one supplier, countless unpredictable factors will influence the. buyer's choice. Some allowance, based on established preferences in the area, can be made for the first situation, but the relative importance of the second cannot be evaluated in quantitative terms. Bricks - For the primary market area, consideration may be given separately to urban Jacksonville, on the one hand, and the scattered rural distribution points making up the rest of the area, on the other hand. In both cases it would be reasonable to assume that at least twenty percent of the brick market will require types which will not be supplied from a Bristol-Blountstown planto This allowance would not include used brick, however, because this product - although extremely popular in the area at present - was excluded from the current consumption figures estimated herein. Because of the intense competition for the concentrated Jacksonville market, the advantage of barge transportation enjoyed by Augusta plants, and the relatively small land transportation cost advantage which Bristol-Blountstown would have over existing competitors, it is unlikely that the proposed plant could expect more than about 10 percent success in competing for the Jacksonville market. The estimated probable share of this market would thus be on the order of 4,000,000 bricks per year. In the rest of the primary market area, because of greater transportation cost advantages and less intensive competition in the smaller distribution points, it is expected that a Bristol- Blountstown plant would be far more successful. The. total probable share of this market could average out as high as 50 percent of the products .for which the plant was capable of competing, or about 10,000,000 bricks per year. The estimated total market for bricks to be served by a Bristol-Blountstown plant in the primary market area would be about 14,000,000 units per year. In the secondary market area, the demand is concentrated in the Tampa-St. Petersburg locality, and an effective barge transportation 51 system should provide a Bristol-Blountstown plant with a highly competitive position. With such an advantage, the proposed plant should be able to undercut the present suppliers and capture at least sixty percent of the available market. Allowing twenty per- cent for brick products outside the line of a Bristol-Blountstown plant, the net market share would be about 12,000,000 units per year. On the other hand, if rail rather than barge transportation were used to supply this market area, the probable market share would be reduced by possibly fifty percent, or to a total of some 6,000,000 bricks per year. From this analysis, it would thus appear that the probable share of the combined brick markets likely to be captured by a Bristol-Blountstown plant would be about 26,000,000 units per year if barge transportation were effectively employed, or about 20,000,000 units per year otherwise. This would represent twenty to twenty-six percent of the total estimated brick demand in the two market areas. This is considered a conservative figure. Drain tile - Total drain tile demand for the two market areas was estimated at 1,500,000 linear feet per year. Of this amount, about 600,000 linear feet is attributable to the primary market area. Because almost all of this commodity presently distributed in the area is shipped by truck, the proximity of plant to market takes on additional importance. It is probable that, with its de- cided transportation advantage, a Bristol-Blountstown plant could command virtually all of the market, with the exception of the dis- tribution points along the northern perimeter of the market area. The probable share of this market which could reasonably be assign- ed to a Bristol-Blountstown plant would be on the order of 7 5 per- cent, or about 450,000 linear feet of drain tile per year. For the secondary market area, the advantage of cheaper barge transportation for marketing drain tile would still be important, but less so than in the case of bricks. Because the demand for this commodity is of considerably less volume, there would be lit- tle justification for maintaining as large stockpiles in the area. In addition, much of the demand would be widely scattered through- out the entire secondary market area, as opposed to being concen- trated near the port of Tampa as in the case of bricks. Even with- out the advantage of significantly reduced transportation costs, however, a Bristol-Blountstown plant would enjoy a slightly better competitive position than any of the several major existing plants now supplying this market. For this reason, it should be able to capture at least 40 percent of the market for a probably share of some 360,000 linear feet per year. The combined shares of the primary and secondary market areas would produce a total market of about 810,000 linear feet of drain tile per year for a Bristol-Blountstown plant. Estimates of probable share for both the brick and drain tile market are summarized in the table below. 52 TABLE 11 ESTIMATED PROBABLE SHARE OF THE CURRENT BRICK AND DRAIN TILE MARKET TO BE SERVED BY A BRISTOL-BLOUNTSTOWN PLANT Brick Drain Tile (Units ) (Linear Feet) Bristol- Bristol- Current Blountstown Current Blountstown Demand Share Demand Share Primary Market Area 75,000,000 14,000,000 600,000 450,000 Secondary Market Area ' 25,000,000 12,000,0Q0 900,000 360,000 Total 100,000,000 26,000,000 1,500,000 810,000 Possibilities for Expanding the Present Market There are two distinct possibilities for immediately expanding the market available to a Bristol-Blountstown plant. One of these involves an increase in demand, and the other an enlargement of the market area to be served. Both are discussed briefly below « Increasing the demand - Analysis shows that the primary market area is well 'supplied with structural clay products and that these products enjoy a relatively strong competitive position in the build- ing materials market. As a result, clay products such as brick and drain tile are used extensively, with the limitation to greater use being primarily one of consumer preference. Unless some development takes place to alter the status quo, the present level of demand will continue to represent very nearly the saturation point for the clay products market in this area. Such is not the case in the secondary market area, however. Here, the relatively minor consumption of structural clay products is a direct result of competitive pressure from concrete products, which are manufactured extensively in the area. Incidental to this economic disadvantage, an artificial barrier to wider use of clay products has developed. Architects, builders and individual consu- mers in the area appear frequently to refrain from considering clay products because of a prevalent attitude that such products are prohibitively expensive. As a result, concrete products have been able to exploit the masonry construction market even beyond the point which the relative economics would indicate. Provision of a new source of supply for clay products on a more competitive basis, combined with aggressive promotional efforts, 53 would result in a substantial increase in the present level of demand in the secondary market area. The rate of brick consumption in this area is less than half that of the primary market area, despite a much faster growth rate and a correspondingly active construction market. With the favorable developments mentioned, it would not be unreasonable to expect a volume increase in brick consumption in the secondary market area. The rate of brick consumption in this area is less than half that of the primary market area, despite a much faster growth rate and a correspondingly active construction market. With the favorable developments mentioned, it would not be unreason- able to expect a volume increase in brick consumption in the secondary market area of 10,000,000 - 15,000,000 units per year over the first five to ten years of operation. For planning purposes, it would be safe to assign an additional 5,000,000 units per year to the initially available market, assuming that the advantages of barge transportation materialized. Even without barge transportation, the demand in the secondary market area could be stimulated considerably by active pro- motion of brick and other structural clay products. Enlarging the market. area - At the present time there is a de- mand of about 20,000,000 to 25,000,000 bricks per year in the area of the Florida peninsula south of the primary market area and east of the secondary market area. This part of Florida is growing at an extremely rapid rate, giving rise to one of the largest construction markets in the country. Because bricks are used primarily for archi- tectural variety, however, the demand for this commodity has not kept pace with the general upward trend of the area. Still, the total volume of brick usage is considerable, and to the extent that this demand could be met with products produced at a Bristol-Blountstown plant, such a plant would be in a position to compete favorably with existing suppliers for this additional market. In effect, this area provides a tertiary market area available to a Bristol-Blountstown plant, and might be worthy of more detailed at- tention except for two potentially limiting factors. First, since bricks have to be brought in from such distant sources, a wide variety of choice is exercised by users, making it unlikely that a single plant could demand a significantly large share of the market. Sec- ond, the demand in the area is concentrated primarily along the Atlantic coast, making the market subject to potential exploitation by means of the Atlantic Intracoastal Waterway system, should the demand rise to a high enough level to justify such operations. Accord- ing to various reports, unconfirmed at present, serious attention is already being given to the feasibility of barging brick to Sanford, Florida, the head of navigation on the St. Johns River. This would serve as an excellent distributing point from which to supply the rapidly growing Orlando-Cape Canaveral area. Although the south Florida area is not considered a highly productive market, it is probable that an additional 2,000,000 to 2,500,000 bricks per year could be marketed here by a Bristol-Blounts- town plant. There is every reason to suspect, however, that the 54 competitive position of the Bristol-Blountstown site relative to this area will decrease rather than increase with further devel- opments in the structural clay products industry. Conclusion as to Sufficiency of Market If all marketing possibilities are aggressively exploited, a market of 30 to 35 million bricks per year and approximately one million linear feet of drain tile per year should be avail- able to a Bristol-Blountstown plant. A plant of this capacity would be somewhat larger than the national average and consider- ably larger than a number of the plants currently serving this market area. There appears to be no reason why a plant of this size cannot operate on an economical basis and turn out a suit- able product at a competitive cost. Prospects for Future Growth in the Structural Clav Products Industry As a result of the sharp decline in sales and use of major structural clay products over the past decade, several steps have been taken, on an industry-wide basis, to revitalize the industry by means of research and development and more effective promotion and marketing. Two organizations, The Structural Clay Products Institute and The Structural Clay Research Foundation, have been active in disseminating information, organizing and assisting in promotional and marketing campaigns, ans research and development of new products and processes. In addition to the efforts of these organizations, the industry is served by trade journals which regularly report on advances in technology, new products, and other items of interest to the industry. The efforts of these organizations have been rewarded by the development and promotion of several new products and processes which could ultimately result in a much wider use of clay products in the construction industry. The continued development of new products offering a wider possibility of uses and new processes aimed at achieving lower unit production costs, lower delivered costs, and lower building costs should do much to improve the economic outlook of the industry. Among the new products currently available or under devel- opment are various types of building panels < CD H h- w Q) •H ■P C > 3 (0 O rH CJ O C M-i 3 O O X, 13 O C c o •H ■p o o ftJ -3 • w >i D£-M ■M C «H 0) 5 O •H ,C 0) to 3 DC •H 60 drilling program to obtain preliminary information on the extent of several suspected clay deposits. The drilling program was witnessed by Mr. W. D. Reves of the Florida Geological Survey. The results of this drilling suggested the presence of at least three deposits of possible commercial extent. Samples were tested and test bricks made by a private concern interested in developing the deposit. None of this information has even been made available, but it is said that results were favorable. A limited number of extra samples from this program were given to the Florida Geological Survey and sent to the U. S , Bureau of Mines for testing. The re- sults of this work are expected to become available as part of a minerals inventory of the State of Florida currently in preperation. In 1962, the above mentioned deposits in Liberty County were sampled and tested to determine their suitability for use as a source of silica and alumina in Portland Cement manufacture (George Aase S Associates, 1962). This sampling program was also limited, and since only chemical analyses were performed, very little infor- mation pertaining to the use of the deposits for structural clay products was obtained. Criteria for Sampling and Testing Previous work, though largely unpublished and generally unavail- able, indicated the presence of several clay deposits of possible commercial value in Liberty County, and at least one such deposit in Calhoun County. The cost of drilling and laboratory testing of clays made it clear from the start that a complete program of sampling and testing of each deposit would be impossible. It was therefore decided that sampling would be limited to those deposits which were favored by transportation and other advantages, and to those deposits for which useful information was not available. Using these criteria, samples were collected from three local- ities in Liberty County, The single known locality in Calhoun County was not sampled because of the availability of a recent (1957) consultant's report which presented the results of an extensive pre- liminary sampling and testing program. These results will be sum- marized in this report. Sampling Methods and Sample Design Previous experiences in sampling the clay deposits of this area indicated that obtaining samples would present a problem, since the clay in its natural state is extremely dense and virtually im- possible to penetrate with a hand auger. The possibility of using rotary drilling methods was considered, but rejected because of the high cost involved. The problem of obtaining samples was fin- ally solved by building a portable drilling rig, consisting of a heavy-duty half-inch electric drill, powered by a 110 volt, 15 amp., gasoline-driven, electric generator. A four-inch post hole auger bit, with various lengths of drill rod, was driven by the electric drill. This device, in most cases, provided sufficient power to penetrate 61 the clay strata, and the various lengths of drill rod permitted operation of the drill at a convenient height above ground, re- gardless of the depth of the hole. The post-hole auger was removed from the hole when full and the exact depth of sample could easily be determined by measurement each time the auger was removed from the hole. In addition to those obtained by drilling, samples were col- lected at two road cuts. One of these sites was a newly exposed section of the clay strata along a highway construction project, and the other was an older exposure along a secondary road. In each of these cases, fresh, unweathered samples were obtained by removal of surface material and sampling of unexposed clay. A sample design was developed to accomplish two purposes: (1) to provide additional information that could be used in com- bination with the data gathered previously by local interests in determining the extent and confirming the continuity of the deposits, and (2) to provide samples for laboratory testing from each of the deposits to determine quality and to evaluate any possible changes in quality either horizontally or vertically within the deposit. Because the work conducted by local interests, and witnessed by the Florida Geological Survey, presented reliable - but sparse and widely spaced - data on the thickness and extent of two of the deposits, it was a simple matter to plan a sampling program which would provide additional data to indicate the presence of deposits of commercial thickness or extent. The second objective, and probably the most important because of a lack of previous information, was the determination of quality and determination of any possible variation, either verticallv or horizontally within the deposits. To achieve this objective, samples for testing were selected in the following manner: 1. At each locality a representative sample of the entire thickness of the strata penetrated was preserved for laboratory testing. This procedure would give an indication of quality of material if the entire thickness of clay were to be mined as would be done in an efficient low-cost mining operation. 2. In addition to preserving a representative portion of the entire sample, certain depth intervals of some samples were preserved for separate testing where visual examination indicated the possibility of changes in physical properties with depth, Specific sampling procedures for each locality will be discuss- ed in detail below. Objectives of the Test Program "The objectives of the test program are: 1. To determine the quality of the clay as a raw material for use in the structural clay products industry. 62 2. To determine any significant variations in quality between separate deposits and within each deposit. To achieve these objectives, a series of laboratory tests (described in detail below) was performed on each collected sample - a total of twelve samples in three separate areas. It should again be emphasized that the testing program was intended only to be a preliminary program to indicate whether further detailed exploration and pilot plant testing should be undertaken The results of tests conducted in Area IV, Calhoun County, during a previous investigation (Buie, 1957) are also discussed in this section Description of the Testing Program The series of tests conducted during this investigation con- sisted of a number of laboratory tests to determine: 1. Physical characteristics of the raw materials, to give an indication of handling qualities of the raw materials and other factors having a bearing on the behavior of the materials during manufacturing* 2. Chemical analysis of the raw materials, to provide data on chemical composition and to indicate the presence of impurities and coloring matter. 3. Physical properties of fired samples, for the purpose of determining whether the prod- ucts to be manufactured will meet existing specifications for various products and to compare the quality of the finished product with that of similar products manufactured elsewhere . The tests conducted are listed below along with a brief dis- cussion of the significance of each, and the ranges of value which are acceptable for structural clay products. Plasticity - Values for plasticity, the transverse strength or modulus of rupture of the material in the plastic state (with suf- ficient water to render the clay suitable for extrusion) is given in pounds per square inch. Plastic strength should be sufficient to prevent warping or deformation during the extrusion or drying process. Acceptable ranges of plasticity vary widely with different types of processing equipment and for different products, and for this reason plasticity is also described as acceptable or not ac- ceptable . Dry Shrinkage - Dry shrinkage is the percentage of linear 63 shrinking of a product from the time it is extruded or shaped until it is ready for firing. Dry shrinkage alone is not usually a limit- ing factor in the use of clay for structural products, because the total shrinkage, during both drying and firing, is of greater importance. The total drying and firing shrinkage should not ex- ceed 16 percent, and the clay should dry without warping or crack- ing. A relatively consistent rate of shrinkage is desirable in order to insure that dimensional control of the product is suf- ficient to meet specifications. Dry Strength - Dry strength is the transverse strength or modulus of rupture of the extruded, or shaped, unfired product, in pounds per square inch. For ease of handling without undue danger of break- age, the dry strength of a brick clay should exceed 70 pounds per square inch. Firing Temperature - The firing temperature or firing range of a clay is the temperature or temperature range at which the clay changes or vitrifies into brick, tile or other similar materials. Commercial firing ranges are between 1800° and 2400° Fahrenheit. Clays which develop desirable characteristics at low temperatures are preferred because of the low consumption of fuel in the manu- facturing process. A rather wide range of temperatures in which desirable qualities develop is also preferred, since this eliminates the necessity of critical temperature control. Each of the tests discussed below were performed on clays fired over a range of tem- perature from 1950° to 2250° Fahrenheit. Fired Shrinkage - The percent of linear shrinkage during firing is the fired shrinkage. As mentioned earlier, total shrinkage - the combined drying and firing shrinkage - should not exceed 16 percent for use in brick or drain tile manufacture. Fired Strength - The fired strength of the finished product, or mudulus of rupture, is the transverse strength, expressed in pounds per square inch. This value should exceed 600 pounds per square inch for building brick, 2000 pounds per square inch for hollow tile or sewer pipe, 1200 pounds per square inch for drain tile, and 2700 pounds per square inch for quarry or floor tile. Absorption - Water absorption is important in cold climates as an indication of resistance to freezing and thawing in the pro- duction of brick and hollow tile. For other products, specifica- tions usually call for a maximum total absorption, such as less than 16 percent for drain tile and not more than 8 percent for sewer pipe. Other measures of absorption such as the C/B ratio, have been devised to give an indication of resistance to freezing and thawing better than that provided by total water absorption. The C/B ratio, or saturation coefficient, is the ratio of absorp- tion after 24 hours of submersion in cold water to the absorption after 5 hours submersion in boiling water. This gives the ^atio of easily accessible pore space to total pore space, and thus is usually an effective measure of resistance to freezing and thawing. 64 However, when total absorption is low (less than 8 percent), the material may have an unfavorable C/B ratio and still be quite re- sistant to freezing. Products which will be subject to freezing while saturated should have a C/B ratio of less than 0.78. For less severe conditions, or for interior use, a higher ratio is generally acceptable. Area I - Liberty County Location - Area I is located on Sections 25, 26, 35, and 36, of Township 1 South, Range 8 West, approximately six miles south of Bristol, Florida (Figure 7). Description of Area - Most of the area is currently in use as pasture, with bordering areas planted in pine trees. The area is of generally flat topography and has a minimum elevation of fifty feet above sea level, sufficiently to eliminate the possibility of flooding from the nearby Apalachicola River. Previous Work - Three cores were taken from this area by a group of local citizens in 1960. These cores indicated the presence of a large clay deposit of considerable thickness. Approximate locations of these holes (numbered I through III are shown on Figure 7. The clay sections penetrated in these holes were 12.5, 14.5 and 5.5 feet in thickness, respectively. Sampling Procedure - Three holes were drilled in Area I during this invest] gation to obtain material for testing and to provide additional information on the extend of the deposit. The locations of these holes are shown on Figure 7 and logs of the holes are presented in Appendix I. A total of six samples were prepared for testing from material collected in this area. The material to be tested is described below: Sample Sample Sample Designation Location Depth Remarks A Hole No. 1 1-10' Total section of clay penetrated in hole B Hole No. 1 1-4' C Hole No. 1 4-7' D Hole No. 1 7-10' E Hole No. 2 4-7 • Total depth-7» F Hole No. 3 2.6' Total depth-6 1 Only in Hole No. 1 was a thick section of clay penetrated. In Holes No. 2 and No. 3 drilling had to be abandoned at shallower depth because of the inability of the equipment to penetrate to 65 •H -J to , ■M -P tO c U 3 O O m •H p.. 66 greater depth. With the information available from the earlier drilling program, however, a preliminary estimate of the extent of the deposit is possible, as is a determination of the physical and chemical properties of the clay. Tests were made of the entire sections of clay recovered from each hole (Samples A, E and F). In addition, the nine foot section of clay recovered in Hole No. 1 was split into three depth intervals, corresponding to superficial physical differences (primarily color, but with some apparent minor changes in silt and sand content ) Further tests were made of the clay from each interval to determine whether any significant differences in quality exist with depth in the deposit. Quality - Visual examination of the samples obtained during drilling indicates that the clay is plastic, slightly silty, gen- erally free from sand-or contains only minor percentages of sand- and varies in color from yellow to red to gray. A relationship of color to depth appears to exist, although not consistentlv throughout the area. The yellow clay, possibly weathered, lies closest to the surface and is underlain by gray or red and gray mottled clay. Other than color differences - which may be due to weathering of minor constituents - and slight variations in sand and silt content, there was no reason to expect that signifi- cant quality differences exist, either vertically or horizontally, throughout the deposit. This appears to be confirmed by the re- sults of the tests which are discussed in a later section of the report „ Reserves - The deposit is estimated to cover approximately 2 80 acres. Overburden varies from one to four feet, and the thickness, where fully determined, ranges from 5.5 to 12.5 feet. The deposit. is estimated conservatively to contain over 4 million cubic yards of clay, or 6 to 8 million tons. While further drilling will be necessary to confirm the con- tinuity of the deposit and permit more accurate estimates of re- serves, it is possible that additional work will show the de- posit to contain reserves considerably in excess of the above figures . Results of lesting Program -- Six samples were submitted for testing from Area I. The locations of these samples are shown on Figure 7 (Locations 1, 2 and 3). Sample A represents the en- tire thickness of clay penetrated at location No. 1; samples B, C and D represent the upper, middle and lower parts, respectively, of the clay stratum at location No. 1; sample E represents the entire thickness of clay from location No. 2; and sample F re- presents all eliSy* collected from location No. 3. Clays from each sample were fired up to four times, at temperatures ranging from 1950° to 2250°F. A tabulated summary of the physical test data is given below: 67 Summary of Physical Tests - Area I - Li berty Count; 1 Sample No. A Firing Plasticity Temp.(°F) PSI 1950 2050 2150 2250 79.7 % Dry Shrinkage 4.7 % Fired % Total Shrinkage Shrinkage 2.3 4.8 5.1 5.4 7.0 9.5 9.8 10.1 B 1950 2050 2150 2250 52.9 4 9 2.9 4.3 4.7 4.9 7 8 9 S 2 9.6 9.8 ]950 2050 2150 2250 62.1 6.0 7.8 10.6 11.0 11.1 1950 48.8 2050 2150 2250 1950 45.4 2050 2150 2250 I . S • * 1950 56.0 2050 2150 2250 6.2 5.8 6.0 1.3 2.6 3.9 I.S 2.6 5.4 6.1 5,5 8.3 10.3 10.9 11.4 7.1 8.4 9.7 I.S 8.6 11.4 12.1 11.5 * Insufficient Sample 68 Summary of Physical Tests (Continued) Dry Strength Fired ASTM* Sample (Modulus Strength Absorption C/B Firing No. of Rupture) (M.R.) 24 hr. Total Ratio Range (°F) 641 1659 14,4 16.7 0.86 2290 10.3 13.8 0.75 A 2110 8.7 12.4 0.74 2050 to 2310 8.1 12.4 0.66 2250 396 1062 17.2 19.4 0.89 1620 12.6 16.2 0.78 B 1550 11.6 15.4 0,75 2050 to 1700 10.9 14.6 0,74 2250 833 2210 13.8 15.3 0.90 3175 7.6 10.3 0.74 C 3210 5.8 8.8 0.66 2050 to 3540 5.0 8.2 0,60 2250 912 1800 12.8 15.9 0,80 2395 7.5 11.8 0.64 D 2365 6.3 11.7 0.58 2050 to 2540 5.3 10.0 0,52 2250 360 941 17.2 19.9 0,87 1065 10.5 14.5 0.75 E 1200 11.6 15.4 0.76 2050 to I.S. I.S, I.S. -L O « 2150 388 1350 17.5 19.4 0,90 1810 10.5 13.6 0.77 F 2190 9.1 12.1 0.75 2050 to 2210 8.0 11,4 0.71 2250 * American Society for Testing Materials I.S. indicates insufficient sample Dry and fired strength values are in pounds per square inch. Samples were also analyzed chemically, according to specifications given in Test No. C-18-60 (Chemical Analysis of Refractory Materials) of the American Society for Testing Materials. The results of these analyses are tabulated below: 69 Chemical Analyses - Area I - Liberty County Sample Number A B C D E F Water Loss @ 105° C 2.79% 3.22% 3.86% 4.9 5% 2.50% 5.49% % Dry Basis % Dry Basis % Dry Basis % Dry Basis % Dry Basis % Dry Basis Loss on 10.15 8.85 9.70 11.41 8.36 12.75 Ignition Silica (Si0 2 ) 63.50 6 8.58 66,22 58.50 71.47 54.16 Alumina (A1 2 3 ) 23.13 19,25 20,53 26,13 17.43 28.76 Iron Oxide (Fe 2 3 ) 1.72 1.15 1.43 0.81 0.96 2.49 Titania (Ti0 2 ) 0.90 1.10 1,00 1.15 1.25 1.25 Calcium Oxide (CaO) 0,40 0.40 0.40 0.40 0.30 0.40 Magnesia (MgO) 0.00 0.00 0,00 0.30 0.00 0.05 Sodium Oxide(Na 2 0) 0.00 0.10 0.23 0.13 0,13 0.11 Potassium Oxide(K 2 0) 0.45 0.29 0. 37 0.93 0.21 0.25 Lithium Oxide(Li 2 0) 0.00 0,00 0.00 0.00 0.00 0.00 The above analyses show a strong similarity in overall chemical composition, indicating that, on the basis of the samples taken, the deposit has no significant variation in chemical composition which would "> n any way affect the quality of the finished products. Iron oxide (Fe 0J and titania (TiO ) are present in small quantities and act as pigments, largely controlling the color of the fired product. Neither iron oxide nor titania should constitute more than a few per cent of the 70 composition of the clay because of their deleterious effects on physical properties when present in greater quantities. The oxides of calcium (CaO), magne^'nm (MsO), sodium (Na20), potassium (K2O), and lithium (L^O) are unnecessary constituents in a structural products clay and become undesirable if more than a few per cent total are present in the sample. All samples in Area I show favorable chemical analyses. The test results for plasticity, dry shrinkage and dry strength indicate that the properties of the unfired clay are favorable for use in the manufacture of brick or drain tile. The tests of the materials at various temperatures indicate that optimum qualities are developed at a temperature range of 2050° to 2250°F (Sample #E was not fired at 2250°F because of an insufficient amount of material for further testing). These temperatures are within the ranges commonly used for commercial brick and tile production. It will be noted that several desirable qualities, including fired strength, absorption, and C/B ratio, improve as firing temperature is raised. However, shrinkage, which must be held within tolerable limits, also increases with temperature, and it is probable that at temperatures greater than 2250°F total shrinkage would exceed tolerable limits. Graphs showing the properties developed at various temperatures are included in Appendix III. Perhaps the most important quality of a brick clay is one which is extremely difficult to evaluate quantitatively - the color of the fired brick. Sample bricks made for the performance of laboratory tests show an attractive range of colors from light salmon and buff to a deep brick red. The lightest colors are produced at the lowest temperature, and where great strength is not required it is possible that a very attractive light colored brick could be made from this Clay.. Somewhat darker colors appear among samples fired at th highest temperatures, and samples representing the entire thickness of clay at each location range from a relatively light salmon or buff to somewhat darker shades of red. The colors are uniform and the fired texture, uniform size, and freedom from cracking and warping suggest the possibility of producing a high quality brick and drain tile from this clay. Remarks - Preliminary work indicates the presence of a deposit of commercial size and quality. Field sampling also suggests a uniformity of quality within the deposit. The deposit is sufficiently close to possible water transportation and is reasonable accessible to truck transportation to offer possi- bilities for commercial use. Natural gas main lines are located approximately nine miles from the deposit, but transportation of raw m^ terials some distance to a plant site favorably located with respect to natural gas, water transportation and truck transportation may prove feasible. 71 Area II - Liberty County Location - Area II is located in Sections 10, 11, 14 and 15, T. 2 South , IT. 8 West, near the are- 3 ''nown as Estif fanulga , ap- proximately eight to nine miles south of Bristol (Figure 8). Description of Area - The area is primarily in use as pasture, and part of the area is located in the Apalachicola National Forest,, A fish camp and a few buildings occupy a small part of the area, but for the most part the area, including that part within the national forest, is available for the development of industry. The terrain is generally flat, and elevations in the area are sufficient to provide protection from flooding. Previous Work - Four core? ''ere taken in this area during the course of the drilling program conducted by local interests. The approximate locations of these holes are shown on ^igure 8. Holes numbered IV through VII contained thicknesses cf clay ranging from eight to seventeen feet. Overburden ranged in thickness from six to eighteen inches. Sampling Procedure - Four localities were sampled in this area to provide material for testing and to furnish additional information on the extent of the deposit. Two holes were drilled, at localities 4 and 5, and two outcrops were sampled at locali- ties 6 and 7. From these four localities a total of five samples were prepared for testing, as shown belcw: Sample Designation Sample Location Sample Depth G Hole No. 4 2-12' Total depth - 12' H Hole No. 4 4-12' J Hole No. 5 2-6» Total depth - 6' K L Outcrop No. Outcrop No. 6 7 2-12' 1-6' Total thickness of exposure Total thickness of exposure The sampling program in this area, combined with earlier data, strongly suggests a deposit of considerable extent. The sampled intervals were believed to be representative of the de- posit as a whole, which, in general, appeared to be quite uniform in quality throughout its extent. Hole number 4 was the only 72 sample locality which, on the basis of visual examination, seemed to show a possible difference in physical characteristics. How- ever, the results of all testing showed no signigicant differences between a sample representing the total thickness of clay and a sample representing only the lower eight feet of clay. Quality - As in Area I, the results of visual examination of the samples showed only minor differences in physical pro- perties - primarily color and sand and silt content. The clay is yellow or a red and gray mottled color, fairly plastic and with negligible sand content. Quality appeared to be consistent, both vertically and horizontally. Further indications of the qual- ity of the material are given in the discussion of test results. Reserves - The area covers an estimated 307 acres. Over- burden was found to be less than eighteen inches in all areas sampled, and thicknesses ranged from eight to seventeen feet. A conservative estimate of reserves based on preliminary data indicate the presence of 5.9 million cubic yards, or 8 to 12 million tons. Results of Testing Program - Five samples were tested from Area II . The locations of these samples are shown on Figure 8 (Locations 4, 5, 6 and 7), Samples G, J, K and L, represent the entire thickness of clay recovered at locations 4, 5,6 and 7, respectively. Sample H represents all but the upper 2 feet of clay at location 4, and was taken as a check on the vertical uniformity of the deposit. Clays from each sannle were fired and tested up to four times, at temperatures ranging from 1950°F to 2250°F. A tabulated summary of the physical test data is given below: 73 ■H . V -M U 3 O O CO (1) 74 Summary of Physical Tests - Area II - Liberty County Sample Firing Plasticity % Dry % Fired % Total No. Temp.(°F) 1950 PSI Shrinkage 6.1 Sh: rinkage 1.0 Shrinkage 52.6 7.1 2050 2.8 8.9 G 2150 3.4 9.5 2250 1 1 U | I . S . * I . S . * 1950 43.1 6.3 0.7 7.0 2050 2.2 8,5 H 2150 2250 3.2 I . S . * 9.5 ■L « D « 1950 48.9 6.6 2.3 8.9 2050 5.5 12.1 J 2150 2250 5.8 6.2 12.4 12.8 1950 49,2 6.9 2.3 9.2 2050 4.1 11.0 K 2150 2250 4.8 4.8 11.7 11,7 1950 51.8 6.5 2.4 8,9 2050 4.4 10,9 L 2150 2250 5.1 5,3 11.6 11,8 Insufficient Sample 75 Summary of Physical Tests (Continued) Dry Strength Fired ASTM* Sample (Modulus Strength Absorption C/B Firing No. of Rupture) (M.R. ) 24 hr. .Total Ratio Range (°F) 469 1062 15.8 18.3 0.87 1220 12.6 16.9 0.75 G 1480 10.7 15.2 0.70 2050 to I.S. I.S. I.S. I.S. 2150 502 1023 15.5 18.2 0.85 1095 12.5 16.9 0.74 H 1375 9.9 14.6 0.67 2050 to I.S. I.S. I.S. I.S. 2150 314 998 18.2 20.9 0.87 1399 11.5 15.4 0.75 J 1398 9.9 13.9 0.71 2050 to 1430 9.2 13.0 0.70 2250 952 2430 12.6 15.8 0.80 3130 8.5 12.1 0.71 K 3150 6.7 10.8 0.62 1950 to 3180 5.9 9.7 0.60 2250 859 2440 13.0 15.5 0.84 '3230 11.0 11.5 0.96 L 3300 6.0 9.7 0.62 1950 to 3650 5.4 9.5 0.57 2250 American Society for Testing Materials I.S. indicates insufficient sample 76 Samples were analyzed chemically, according to specifications given in ASTM Test No. 6-18-60, Chemical Analysis of Refractory Materials. These results are tabulated below: Chemical Analyses - Area II - Liberty County Sample Number- Water Loss @ 105°C Loss on Ignition Silica (Si0 2 ) Alumina (AI2O3) Iron Oxide (Fe20 3 ) Titania (Ti0 2 ) Calcium Oxide (CaO) Magnesia (MgO) Sodium Oxide (Na20) Potassium Oxide (K 2 0) 0.35 Lithium Oxide (LijO) Chemical analyses indicate, as in Area I, a strong similarity in composition, suggesting no significant variations throughout the area sampled. All minor constituents of the clays are present only in tolerable percentages, and the analyses, therefore, show no unfavorable chemical characteristics. Physical characteristics of the raw materials, dry shrinkage, plasticity and dry strength, indicate uniform material of favorable characteristics for manufacture of brick and tile. The results of firing tests at various temperatures also indicate that favorable values of total shrinkage, fired strength, absorption and C/B ratio can be developed at commercial firing temperatures, ranging from 1950° or 2050° to 2150° or 2250°F. 77 G H J K L 5.39% 6.35% 2.12% 6.35% 4.20% % Dry Basis % Dry Basis % Dry Basis % Dry Basis % Dry Basis 11.67 10.66 8.69 12.25 10.99 65.76 66.46 64.20 59.93 58.89 19.24 19.69 22.70 22.65 23.88 1.24 1.72 2.20 2.49 2.96 1.40 1.05 1.10 1.35 1.15 0.30 0.30 0.40 0.40 0.30 0.20 0.40 0.05 0.05 0.40 0.18 0.08 0.66 0.37 0.37 0.35 0,45 0.31 0.82 1,15 0.00 0.00 0,00 0.00 0.00 In each case a firing range of at least 200° will result in the development of favorable qualities. Graphs showing physical characteristics developed at various temperatures are included in Appendix 3. The overall variation in physical properties within the area is somewhat greater than in Area I, but this is not sufficient to be of concern in manufacturing. As in Area I, the improving qualities of strength, absorption and C/B ratio at higher temperatures must be weighed against the increase in total shrinkage as filing temperatures are raised. However, the results of the tests ' indicate that desirable values for all physical properties may be obtained within the range of commercial firing temperatures, and that, for most uses, a maximum temperature of 2150° to 2250°F is sufficient. Color of the sample bricks indicates that an attractive range of color - from buff or light salmon to deep red or chocolate brown - is possible. Unlike Araa I, further testing may indicate that certain parts of the deposit, while similar in all other respects , may produce slightly different fired colors. Again, there iu a definite relationship between temperature and color, with the darker colors appearing at the higher firing temperatures. Colors are uniform at each firing temperature, and the variety of color obatined through the blending of clay during mining and by regulating temperature may prove to be wider than in Area I. Uniform size and texture, and freedom from cracking or warping of the fired clay, indicate the possibility for manufacture of products of high quality. Remarks - Preliminary work indicates the presence of a clay HeposTt of commercial size and quality. The ^ull extent of the deposit is not yet known, and additional data are needed to confirm its continuity and uniformity of quality. Water and highway transportation are available in close proximity to the deposit. If necessary, because of anticipated low mining costs, the materials could possible be transported short distances to a plant site favorably located with respect to water and truck transportation and natural gas. Area III - Li berty County Location ~^~ Area YTl is located in Section 16, Township ? South" P^ange 8 West, approximately 18 miles south of Bristol, Florida (Figure 9). Description of Area - The topography of the area is generally flat ,~ and" e l, Iev"atrons ll, '"in""the area are sufficiently high to preclude any danger of flooding. The land has been used for timber produc- tion, and is currently planted in pine trees. Previous Work - Three holes were drilled in this area by local interest's 1 in 1960. The approximate locations of these holes 78 are' shown on Figure 9. This drilling program suggested the presence of a clay deposit of possible commercial extent. Holes numbered VIII through X encountered 14 to 16 feet of clay. Sampling Procedure - In this area a single locality (No, 8) was sampled by drilling to a depth of eight feet, the maximum pos- sible penetration with available equipment. Additional sampling or testing was not considered necessary because transportation and other factors were not so favorable to development as in other areas discussed in this report. Quality - Any discussion of quality of clay in this area can have only minor significance because of the single sample available for study. However, the clay appeared to be very similar to that obtained from Areas I and II, and was of consistent color - light yellow - in the depth interval sampled. The clay was plastic and free from sand and other impurities. Reserves - Based primarily on work done by the local group in 1960, clay ranging in thickness from 14 to 16 feet is present over an area of approximately 230 acres. A preliminary estimate indi- cates -the presence of 4 . 4 million cubic yards, or approximately 6 to 9 million tons. Results of Testing Program - One sample from Area III was sub- mitted for testing. Sample M represents the entire thickness of clay penetrated at locality No. 8. The results of the tests are given below: Summary of Physical Tests - Area III - Liberty County Sample Firing No. Temp. (°F) 1950 2050 M 2150 2250 Dry Strength Sample (Modulus No. of Rupture) 249 M Plasticity % Dry % Fired % Total PSI Shrinkaj l e Shrinkage 2.0 s Shrinkage 29.2 7.0 9.0 4.4 11.4 4.5 11.5 4.9 11.9 Fired ASTM Strength Absorption C/B Firing (M.R.) 24 hr. Total Ratio Range (°F) 929 19.3 21, .4 0.90 1440 12.8 15, ,9 0.81 1450 11.6 15, .1 0.77 2050 to 1465 10.9 14, .7 0.74 2250 The sample was analyzed chemically, according to ASTM speci- fications for analyses of refractory materials. The results of the * * * , 4 hay f > < 4-> P- C 1 * £ ' • H -f *» H< M ^ I— IT 0) t- < l*-i c c • ■H > . 4-> +J -y^~ 0! C U J / c c -1 CJ cr XT ■ + CJi • H u. 80 analysis are given below: SAMPLE NUMBER LOSS @ 105°C M % AS REC'D Loss on Ignition Silica (Si0 2 ) Alumina (AL2O3) Iron Oxide (Fe203) Titania (Ti0 2 ) Calcium Oxide (CaO) Magnesia (MgO) Sodium Oxide (Na20) Potassium Oxide (K2O) Lithium Oxide (Li20) 2 .24 % DR^ ' BASIS 9. 50 59. 98 25. 09 2. 58 1. 35 0. 40 0.30 0.37 0.65 0.00 Chemical analysis of the sample indicates a favorable composi- tion for the manufacture of structural products. All minor constit- uents are present only in tolerable percentages. The physical tests of the raw material suggest that plasticity, dry shrinkage and strength are all sufficient to permit ease of handling and quality control in the manufacturing process. Tests of the fired clay indicate the development of desirable qualities of strength, absorption, C/B ratio and total shrinkage within the commercial firing temperature range of 2050° to 2250°F, Color ranges from light salmon through rather dark brick red, depending upon firing temperatures , with the darker colors appear- ing at higher temperatures. The fired samples are uniform in size, with a smooth, even surface texture, and are free from cracking or warping. Remarks - The area, though probably containing reserves far in excess of the needs of a single plant, is located over three miles from possible water transportation, one mile from a paved highway, and approximately twenty miles from a natural gas main line. However, it is considered important to sample the deposit, 81 in the face of these possible drawbacks, to provide additional in- formation on the characteristics of clays in the entire two-countv area. Similarity of all deposits sampled has provided a key to further prospecting which may prove useful in this and other areas* The relationship of soil and vegetation classification to the pos- sible presence of commercial clay deposits is discussed in a later section of this report. Area IV - Calhoun County Location - Area IV is located east of Blountstown, Florida, in Sections 26, 27, 34 and 35, Township 1 North, Range 8 West (Figure 10). This area was extensively sampled and tested in a previous investigation (Buie, 1957), and the results of that in- vestigation are summarized here. Description of Area - The area is located along the floodplain of the Apalachicola River and is relatively flat and low-lying, with a maximum elevation of less than fifty feet above sea level. Previous Work - The work conducted by Buie in 1957, included drilling thirty test holes to determine the extent of the clay de- posit, laboratory tests of samples from nine holes, and the manu- facture, in a commercial plant, of sample bricks from clay mined near two of the holes. A total of seventeen additional holes were drilled in nearby areas but did not prove the existence of other commercial deposits. Sampling Procedure - The thirty samples collected by Buie in the area outlined in Figure 10 were taken with a hand auger, and in many places did not penetrate the entire clay section. Holes were generally not drilled to depths exceeding fifteen feet. Quality - The nine samples which were tested in the laboratory during the course of Buie's investigation showed somewhat more variation, particularly in sand content, than the samples collect- ed in Liberty County during this study. However, Buie's samples were more closely spaced than the Liberty County samples, and it would not be surprising to find, upon closer drilling and more extensive testing, that the deposits were similar in this respect. The samples collected by Buie were also divided into various depth intervals for testing, and up to four tests, representing different depth intervals , were performed from the material taken from each hole. Results of Tests - The overall results of the tests - which included a visual examination and estimate of value, and tests for hardness, absorption and sand content - indicate a deposit of clay suitable for the manufacture of bricks. The tests were con- firmed by the manufacture of test bricks from a five ton sample in a commercial brick plant; Quantitative data on strength and other characteristics of the fired bricks, however, were not obtained. Reserves - The deposit is estimated to be at least 247 acres in extent. The depth of clay encountered in the holes averaged 82 approximately ten feet, with less than one foot of overburden. With this information a preliminary estimate of reserves of 3.5 million cubic yards, or 5 to 7 million tons can be made. In his report, Buie emphasized the need for additional close drill- ing to verify the continuity of the deposit, and also to further determine the total areal extent, which was not defined by his drilling program. Remarks - The work of Buie strongly suggests that this de- posit is of commercial size and quality. His conclusions are supported by laboratory tests and test runs in a commercial brick plant. Area IV is somewhat more favorably located with respect to major highways and natural gas than the Liberty County deposits, but has the disadvantage of lying at a low elevation, subject to annual flooding. Thus, in addition to curtailing mining operations for part of the year, it would be necessary to locate a plant and stockpile in some other area which would have access to natural gas, truck transportation and barge facilities - unless a system of dikes could be economically constructed to provide flood pro- tection. Other Areas Prospecting for Additional Deposits - There is reason to be- lie ve~liFh"at~al?a!Ttro!TaT~rel^ present in the two- county area, although none are known or suspected which would be more favorably located with respect to the fuel and transportation needs of a clay products plant than those discussed in this report. The deposits described above, because of the presence of imperme- able clay at shallow depths, will not support a dense tree growth. The soil types developed in these areas are also characteristic. Maps of soil and vegetation types in this area show the known clay deposits mapped as "non-commercial savannah" , indicating a grass- land vegetation and a poorly drained soil underlain by clay, which, in addition to causing poor drainage, inhibits tree growth. Soil and vegetation maps of the Apalachicola National Forest indicate the presence of approximately 3000 areas of non-commercial savannah in that area alone. Additional prospecting through the use of these maps and soil maps of the remainder of the counties could provide a valuable aid in future prospecting efforts if the need for additional reserves should arise. FEASIBILITY OF RAW MATERIALS PRODUCTION Determination of Feasibility of Raw Materials Production Feasibility of raw materials production will be determined by the ability to mine clays in sufficient qualities and of sufficient- ly high quality at a cost low enough to be competitive in the clay products industry. It has been established in a previous section of this report that a market 83 rO c t- <£_ 14- o c • •H > ■P +J 03 c: U 2 -J u a; 84 exists for a clay that can be manufactured into bricks or other structural clay products. This important factor in determining overall feasibility of a clay products industry need not be fur- ther discussed here. In order to determine economic feasibility of mining the clay deposits of Liberty and Calhoun Counties, the following factors must be considered: 1. Reserves ; Clay should be present in sufficient quantity to last throughout the economic life of the manufacturing plant. A forty to fifty year supply is generally considered necessary. 2. Quality : The quality of clay should be high enough to permit the manufacture of a product capable of competing sucessfully for a share of the available market. Quality should be reasonably uniform to permit low-cost quality control and ease of manufacturing. 3. Cost of Mining: Mining cost should be low enough to permit economical manufacturing. It is determined by the cost of land, or roy- alty payments if land is leased; the mining methods used and cost of removing the clay from the ground; and problems encountered in mining which may result in loss of time or require special equipment or more costly mining methods . 4. Transportation to Plant Site : In almost every mining operation some transportation from the mine or quarry to plant site is necessary, and this represents a share of the cost of the raw material delivered to the plant site. If the plant is located near the mine, a low-cost system such as a conveyor may be used. For greater distances, truck or rail transportation is com- mon. This factor is not only important in de- termining feasibility of mining but will be im- portant in the selection of a plant site. In order to present an analysis of the feasibility of raw material production, the data presented earlier on reserves and quality is summarized below for each of the areas studied in the two counties. A discussion of mining and transportation costs will be presented for the area as a while. Summary of Reserves Estimates of reserves available for each of the areas pre- viously discussed is given in the table below. 85 Area I Area II Area III Area IV Total Acres 280 307 230 247 Average Thick- ness of Deposit 9' 12' 12 1 9' Estimated Cubic Yardage of Clay 4,000,000 5,900,000 4,400,000 3,500,000 Estimated Ton- age of Clay 6-8 Million 8-12 Million 6-9 Million 5-7 Million Estimated Supply (Years for Plant of 50 Million brick per year capacity) 60 Years 80 Years 60 Years 50 Years Although the estimates given above are based on a limited amount of data, there is reason to believe that they may be con- servative, and that actual reserves, at least in some areas, are greater than the estimates. A great deal of additional work, how- ever, will be necessary to further refine these estimates, however, there can be little doubt that sufficient reserves, in excess of the quantities needed for a fifty year plant life, could be de- veloped in the area. Summary of Quality The quality of the clays and their possible uses have been discussed earlier in this report, and additional, more detailed, data are presented in the appendices. This information may be summarized very briefly: 1. Quality of unfired clay in all deposits tested is entirely adequate for manufacture of bricks, drain tile and possibly other specialty prod- ucts. No serious drawbacks in the processing or manufacturing are indicated by the labora- tory tests. 2. Quality, as indicated by test results, is quite uniform within individual deposits, both later- ally and vertically. All deposits appear to be quite similar, and no difficulties in handling or manufacturing due to quality variations are indicated by the test results. 3. Quality of the fired products, in all cases, ap- pears to be more than adequate to meet specifi cations for most types of brick and drain tile. 86 In addition, the range of colors; the smooth, even surface texture; and freedom from cracking and warping suggest that a most attractive line of products will be possible. Mining Methods and Problems; Cost of Mining Mining methods which would probably be employed in the area covered by this report would consist of relatively simple, low- cost, open-pit methods. Operations would begin with removal of brush and trees, followed by the removal of overburden with a bull- dozer or tractor and scraper. In the areas described here, the cost of removing the overburden would be nominal because of the very favorable ratio of overburden thickness to clay thickness. Clay would then be removed from the deposit with a dragline, in all probability without the necessity of a regular program of drilling and blasting. The only problem which would be anticipated in this type of mining is the accumulation of water in the pits. The pits should be kept relatively dry in order to promote drying and shrinking of clay. The formation of cracks during drying will permit the ready removal of clay from the fact of the pit and should largely eliminate the necessity of blasting. In the Calhoun County deposit, the presence of water may be a deciding factor in determin- ing economic feasibility of mining. Recurrent flooding will neces- sitate either the building of dikes or a suspension of operations during high water. The latter alternative would require that ex- tensive stockpiles be kept near the plant site, and would result in a higher overall mining cost. After removal from the pit by dragline, the clay will be placed on trucks or other conveyances and transported either to the plant for processing or to a stockpile for storage before processing. The very low thicknesses of overburden compared to the aver- age thickness of clay in the area should permit an economicaly mining operation. In addition, there is no reason to believe that land costs will be excessive, or that any problem, other than possible excessive quantities of water in the Calhoun County de- posit, will be encountered. The following table of estinates will summarize the various costs to be incurred in the mining operation: Per Cubic Yard Land cost ($300 to $600 per acre, average minable thickness of $ .02 to .04 clay of 9 feet) Overburden removal (7 1/2C per cubic yard; approximately one yard of overburden to be re- .01 to .02 moved per 5 yards of clay) 87 Above table continued - Cost of mining, drainage of pits and loading on trucks or conveyors . Per Cubic Yard .15 to .20 Total cost loaded at mine $ .18 to .24/cubic yard (1,5 to 2 tons per cubic yard) Transportation A cost of 5 to 6 cents per ton mile for transportation, by truck, from mine to plant will be added to the mining cost. Thus, with a mining cost of 18 to 24 cents per cubic yard or approximately 9 to 16 cents per ton, a delivered cost at the plant of 62 cents per ton would allow for a transportation dis- tance of up to nine miles. This cost would permit location of the plant at the natural gas main line and provide for trucking of clay to the plant. In the event that a plant site was located in close proximity to the deposit the delivered cost of clay would be reduced, but an addi- tional capital investment would be required to aid in the con- struction of the gas line. This alternative is discussed in the section on utility availability and costs. The estimate given here, based on trucking clay to a plant site located at the main line, is for cost estimates purposes only and is not meant to be construed as a recommendation to locate the site at the main gas line «, CONCLUSIONS 1. Clay deposits of probable commercial extent and quality are present in Areas I, II, III and IV as identified herein. 2. Drilling and testing of the deposits, although preliminary and on laboratory scale only, indicates that reserves are adequate to supply a brick and tile plant through the eco- nomic life of the plant, and that physical and chemical quantities of the clay should permit the manufacture of building brick and drain tile of excellent quality and attractive appearance. 3. The deposits have essentially comparable locational ad- vantages with respect to availability of natural gas, water, and transportation, except for Area III, Liberty County, which has a distinct locational disadvantage. 88 4. Mining conditions and anticipated problems are similar in all areas except Area IV, Calhoun County, which may be subject to periodic flooding. 5. Cost of mining should be economical; a delivered cost of less than 62 cents per ton is estimated. 6. At least two of the deposits, Area I and Area II, have no serious disadvantages in quality, reserves, or any other factors which would influence the feasibility of raw material production. Area III, Liberty County, and Area IV, Calhoun County, do not appear to be as favorably located because of transportational and locational dis- advantages and the problem of flood control, but contain large reserves of high quality clay. 89 PART III PLANT DESIGN AND COST ESTIMATES PLANT CAPACITY AND OPERATING SCHEDULE The plant layout and design described here has been determined by the characteristics of the raw materials, as indicated by the physical tests described in Part II of this report. Plant capacity has been determined from the data presented in Part I of this report which indicated the probable share of the market than can be captured by a west Florida plant. Data presented in Part I also indicate that the small size of the drainage tile market and the declining importance do not justify the additional expense of including tile producing facilities in the plant installation, A standard stiff-mud type plant using conventional equipment and a continuous tunnel kiln is presented here for the purpose of cost estimation and determination of overall project feasibility. It should be emphasized that additional testing of the raw materials is necessary for final plant design. This testing, preferably on a pilot plant scale, may dictate certain changes in equipment or handling and the prospective manufacturers should avail themselves of the services of qualified ceramic engineers and specialists in the engineering and construction of clay products plants to handle the final plant design. The product to be manufactured is standard, solid, common red brick, non-color corrected, with a compressive strength of 2000 to 2500 pounds per square inch. The capacity of the plant is 100,000 bricks per day based on an operating schedule of seven days per week, fifty weeks per year. The annual capacity of the plant is 35,000,000 bricks per year. The continuous tunnel kiln is in operation 24 hours per day, seven days per week for a minimum of 50 weeks per year. All other depart- ments operate on an 8 hour per day, 5 day per week schedule. Description of Manufacturing Process The manufacturing process begins with the delivery of the raw materials to the plant site. The clay is delivered by truck in a reasonably clean condition and in lumps not to exceed eight inches. The clay is unloaded into a ground level hopper. Clay is withdrawn from the hopper, through a gate valve, by an apron feeder and de- posited on an inclined belt conveyor which delivers it to the gran- ulator, located at ground level. The raw, granulated clay is taken from the discharge chute of the granulator, by an inclined belt conveyor, to the No. 1, or pri- mary, disintegrator. The disintegrator discharges the crushed and ground clay downward, into a pit, where it is transported, by an inclined belt conveyor, to the smooth rolls for additional mulling and grinding. The smooth rolls also discharge downward into a pit 90 o > >h c c [Hopperl y |Apron F eeder] I iBelt C onveyor! r fGranulatorj w [Belt Conveyor! i . . ♦ — n |Dis integrator! Jr [Belt Conveyor} ISmooth Rollsl i [Belt Co nveyor! ^Hopper] ilr |Dis integrator! |Belt Conveyor] Hopper T ■j Combination Machine! , T , — Cutterj I Off Bearing Belt Convevork — - jlr |Kiln Cars! i iHoldinp Pooi , T , . ITunnel Kilnt T Strapping Machine^ " [Storape Yard Figure 11, Flow sheet - Brick plant - 35,000,000 bricks per year. 91 where an inclined belt conveyor lifts the ground and rolled clay to a hopper located above the No. 2, or final, disintegrator. This hopper receives materials from the waste return belt con- veyor as well as from the smooth rolls. Clay from the final disintegrator is also discharged onto an inclined belt conveyor located in a pit and is transported to a surge hopper at the feed end of the combination augering, pugging, de-airing and extruding machine. The extruded clay,. formed to the desired shape is cut to size by the cutter and moved on the off-bearing belt conveyor where men, known as pickers, remove the green ware and stack it on kiln cars. Waste clay from the cutter and improperly formed green ware is returned to the hopper above the final disintegrator bv the waste return belt conveyor. Approximately 2,000 unfired bricks are stacked on each of the kiln cars in such a manner as to permit even circulation of air through the stack while it is being conveyed through the kiln. The loaded kiln cars are shuttled to the holding room by car-type conveyors and railroad car type tractors. The green ware is stored in the holding room under a controlled temperature of 80 to 90°F and a humidity of 80 to 90 percent. Heat is supplied to the holding room from the dryer end of the tunnel kiln and may be supplemented by direct fired heaters. The humidity is main- tained by water spray humidifiers. The warmed, loaded kiln cars are then shuttled to the tunnel kiln where they are moved continuously through the various heat stages of the kiln to dry, burn and cool. The burned ware emerges from the tunnel kiln as a finished product at a temperature of about 80°F. The burned ware is then shuttled on the kiln cars to the packaging and strapping machine, where they are strapped in packages of about 500 bricks. The strapped packages are removed for storage by the fork-lift trucks to the storage yard. Seconds of the finished brick are sorted out on the cull conveyor and are stacked, bundled and hand-strapped in packages of 500 bricks. The culls, chips and burned waste are discharged by the cull conveyor of the strapping machine into a dump truck for disposal. MANPOWER REQUIREMENTS AND LABOR COSTS The manpower required for the production of heavy clay products depends on a number of factors, including: 1. The size of the plant. 2. The percent of total capacity at which the plant is operated. 3. The operating schedule. 92 4. The source of raw materials. 5. The efficiency of labor. 6. The amount of mechanization. 7. The ratio of non-productive empolyeed and fixed costs to production employees. 8. The amount of daily maintenance required. The relative size of plant obviously affects labor require- ments per ton of product because the manpower required to operate machines is not proportional to the output or size of the machines The percent of total capcity at which the plant is operated is inversely proportional to the cost per ton of finished product. The number and length of shifts worked in the various depart- ments obviously affects the number of men employed. The source of raw materials and the availability of the raw materials affect the crushing operations of the plant „ Efficiency of labor and wage rates react on plant design as well as operation. Where labor is less expensive it may be used for operations in which mechanical equipment would be employed in regions of high labor rates. On the other hand, cheap labor is frequently inefficient labor, so that labor cost ner ton of product may be lower in a highly mechanized plant with expensive labor than it would be with cheap labor and less mechanization - The ratio of non-productive employees and fixed costs to production employees is proportional to the cost per ton of finished product. The amount of daily maintenance provided is reflected in the amount cf down time required for major repairs and overhauls The operating schedules of the several departments of a heavy clay products plant determine, for a specific output, the size and cost of the various pieces of machinery and other parts of the plant, and thus affects the capital investment. Operating schedules govern the manpower requirements. The tunnel kiln, which determines the capacity of the plant, operates 24 hours a day. The kiln is not allowed to cool if continuous operation can possibly be maintained. The receiving of clay and the grinding, pugging, extruding and manufacturing of green ware is based on an 8 hour per day, 5 days per week schedule. The packaging and shipping departments are based on an 8 hour per day, 5 days per week schedule. Shipping schedules are determined by the demands of the market, due to either seasonal or economic causes, or both. Thus storag° yards and large inven- tories of finished products must be maintained. The raw material should be received at this plant, at a rate compatible to the manufacturing schedule. The more uniform and the cleaner this raw material is when received, the lower will be the cost of raw material processing. 93 The efficiency of the labor market in north Florida at this time is listed in the Bureau of Labor Statistics Reports from Washington, D.C., as excellent, and no change is foreseen in this condition. The wages in north Florida are at present slightly lower than in the larger industrial areas of the north. Some types of equipment require more skill, operators of better technical training, and more technical supervision than others. The percent of highly skilled technicans in a heavy clay products plant is very low. This plant is highly mechanized, but is not overly comDlicated with cross connections , blending process equipment or equipment which requires technical operators. Average day workers can easily be trained to operate any equipment in this plant. Interlocking devices on some of the starters will prevent undue misuse of the equipment and overloading. The ratio of non-productive employees to productive employees as scheduled above is 1 to 8, which is very much in line with average heavy clay products plants. To maintain an operating schedule of 24 hours per day, 7 days per week, it is customary to employ 4 plant operators. Each of these operators would be required to work an average of 4-2 hours per week, 40 hours of this time being at straight time and 2 hours per week being at a premium of 1 1/2 to 1, this then amounts to a weekly pay of 43 hours per week per operator, for 50 weeks of the year, with 2 weeks of the year at a straight 40 hours per week during the vacation period, one additional day of 8 hours is added to the weekly schedule to complete the 365 days in one year. It is also customary to pay the employees on the second or after- noon shift a premium of 5 cents on the hour, while the employees on the swing of night shift are paid a premium of 10 cents on the hour. In accordance with the above schedule the number or persons required to operate the plant would be as follows : Non-Productive Labor General Manager ; Enjoys the advantage of holding stock in the company and in profit sharing - annual salary $13,000 to $15,000 per year. Salesmen ; 1 required - enjoys the advantage of profit sharing - annual salary $10,000 to $12,000 per year, plus normal operating expenses, (some salesmen elect to work on a smaller guaranteed salary and a commission basis), but for figuringannual expenses for this type of plant the above figures are adequate. Accountant ; Enjoys the advantage of profit sharing - annual salary $8,000 to $10,000 per year. Laboratory Technician : Annual salary $7,500 to $8,200 per year. Shipping and Receiving Clerk : Annual salary $4,800 to $5,500 per year. General Office Help : Annual salary $4,500 to $5,200 per year. 94 Productive Labor Plant Foreman ; 1 required - starting salary $2.10 per hour with 4-2 1/2C increases, making a top salary of $2.80 per hour - number of hours worked, 2,180 per year - $4,528,00 to $5,668.00 per year. Utility Man : 1 required - starting salary $].90 per hour with 4-10C increases, making a top salary of $2.30 per hour - number of hours worked 2,238 per year - (the utility man is employed as relief man for all phases of operations and as such should be carried at only 40 hours per week but owing to his hourly scale being at a higher rate than some operators, this additional 2 hours premium time is carried to compensate in the operating budget for the higher scale paid during re- lief time, however, no shift premium is carried for this man, - $4,252.20 to $5,147.40 per year. Manufacturing Plant Operators ; 4 required - starting salary $1.80 per hour with 4-10$ increases making a top salary of $2.20 per hour - number of hours worked - 2,180 per year - $3,924.00 to $4,796.00 per year per man. Green Ware Pickers ; 11 required - starting salary $1.25 per hour with 4 10$ increases, making top salary of $1.65 per hour - number of hours worked 2,180 per year - $2,725.00 to $3,587.00 per year, per man. Only 10 pickers actually required, but experience indicates a high percentage of voluntary absence of this class of employee. Holding Room Men: 5 required - (2 men day shift - 3 men balance of shifts per day and throughout weekend) - starting salary $1.40 per hour with 4-10$ increases making a top salary of $1.80 per hour - number of hours worked - 2,238 per year - $3,133.20 to $4,128.40 per year per man, plus a shift premium of $449.20 per year. Kiln Operators : 4 required - starting salary $1.80 per hour with 4-10$ increases making a top salary of $2.20 per hour - number of hours worked, 2,238 per year - $4,028.40 to $4,923.60 per year, per man, plus a shift premium of $449.20 per year. Burned Ware Pickers : 11 required - starting salary $1.25 per hour with 4-10$ increases, making a top salary of $1.65 per hour - number of hours worked 2,180 per year - $2,725.00 to $3,587.00 per year per man. Only 10 pickers actually required, but experience indicates a high percentage of voluntary absence of this class of employee. Packing Operators : 2 required - starting salary $1.80 per hour with 4-10$ increases making a top salary of $2.20 per hour - number of hours worked 2,180 per year - $3,9 24.00 to $4,796.00 per year, per man. 95 Warehousemen : 4 required - (Fork Lift Operators, Truck Dr: ver and End Load Operator) - starting salary $1.60 per hour with 4-10C increases making a top salary of $2.00 per hour - number of hours worked 2,180 per year - $3,488,00 to $4,360.00 per year, per man. Laborers : 2 required - starting salary $1.25 per hour with 4-10C increases, making a top salary of $1.65 per hour - number of hours worked 2,180 per year - $2,725.00 to $3,587.00 per year, per man. Maintenance Men : 2 required - starting salary $2 o 0C per hour with 4-10 C increases making a top salary of $2,4 per hour - number of hours worked 2,704 - (the day maintenance men average a 48 hour work week, with 40 hours per week at straight time and ■ hours per week at ' premium time of 1 1/2 to 1 , this amounts co an average weekly pay of 5 2 hours per week for 52 weeks a year, however, these day maintenance men do not receive shift premium pay regardless of the time of day during which they work this premium time) - $5,408.00 to $6,489.00 per year, per man. Assuming a middle of the pay bracket as an average for wages, the annual cost of wages based on 24 hours per day, 7 days per week operation of the tunnel kilns, and 8 hour per day, 5 days per week operation of the manufacturing and shipping portions of the plant, the costs would be: Non-productive labor $51,850.00 Productive labor 176,026.00 TOTAL $227,876.80 INSTALLATION COSTS The following is a summary of the estimated installation costs of the plant. Details of the estimate are given in Appendix 4. I ABOR MATERIALS Equipment Property and Improvements Buildings , furniture and fixtures Utilities $199,652.00 3,000.00 168,580.00 9,495.00 $640,097.00 5,000.00 195,770.00 27,585.00 SUBTOTAL $380,727.00 $686,452.00 $1,249,179.00 96 Construction Costs : Engineering 1 1/2% $ 5,712.140 $ 13,026.78 Contingency 3% 11,424.81 26,053.78 Overhead Labor 15% 57,124.05 Materia Is 3% 26,053.78 Profit 6% 22,846.62 52,107.12 SUB TOTAL $ 214,348.90 Total Installation Costs $1,463,527.90 SUMMARY OF ANNUAL OPERATING COSTS The following is a summary of the estimated annual operating costs. Materials ---------------------$ 109,900.00 Clay 122,500 tons @ 62*/ton - $7^.950 Cones 17,500 @ 50* - 8,750 Pallets 70,000 @ 28. 8* - 20,160 Strapping 70,000 @ 7.2* - 5,040 Productive Labor (See Manpower Requirements and Labor Costs) 176,026.80 Non-productive Labor (See Manpower Requirements and Labor Costs) 51,850.00 Fuel 158 therms/1000 brick x 3.8*/therm x 35,000 210,140.00 Power 1.3C/KWH x (4 , 349 ,400+764 ,6500 )HP Hours 49,861.99 Water 6,973,971 gal. @ 20C/1000 gal. 1,387.59 Supplies (See detailed estimate - Appendix 4) 68,509.78 Telephone @ 40.00/mo. 480.00 Inventory 1,000,000 bricks @ $28.50/1000 28,500.00 Depreciation (See Depreciation schedule - Appendix 4) 57,517.64 Taxes ------------------------ 23,654.24 Employers liability-1 1/4% of labor - $2,848.46 Public liability - 1/2% of labor - 1,139.38 Unemployment compensation 54 x 3% x $3000.00 4,860.00 Social security-54 x 3 5/8 x 4800.00 9,525.60 Vacation fund - 3% x productive labor 5,280.80 Fire insurance - 1/2% of plant equipment costs 4,308.86 Legal and Auditing - 1/2% of sales @ 28.50/1000 4,987.50 Sales commissions and advertising - 2% of sales 19,950.00 Travel, bad debts, discounts and allowances-1% of sales 9,975.00 Plant amortization costs per year- 75,210.72 TOTAL ANNUAL OPERATING COSTS $ 892,260.12 "Estimate for cost estimating purposes only. Based on 25 year loan at 4 3/4% interest. Total amount of loan $1,097,645.93, or 75% of installation costs. 97 ANALYSIS OF COST AND RETURNS As shown on the previous page, the annual operating costs of the plant will total an estimated $892,260.12. With an annual production capacity of 35,000,000 bricks, the unit cost of the Droduct is: $25.49 per 1000. A production cost of $25.49 per 1000 and an FOB sale cost at the plant of $28.50 will permit competitive sales of the brick within the market area. Along the fringes of the market area, transportation costs of $7 o 00 to $12.00 per thousand will result in a delivered cost of $35.00 to $40.00 per thousand. These costs will meet the prices of existing competitors in the market fringe area; in sections of the market area closer to the plant site, and in the Tampa Bay ar - served by barge trans- portation, a significant price advantage should be enjoyed, and a greater profit may be possible. The estimated production cost of $25.49 per 1000 will yield an overall profit of 11.8% at an FOB sales price of $28.50 at the plant. This is, for several reasons, a conservative estimate of profits. As mentioned above, in areas where the transportation cost advantage over existing competition is great, the profits may be increased somewhat, while, because of lower transportation costs, the delivered costs to the consumers are kept well below those of competing plants. Other means of increasing profit may be found in alternative financing arrangements, and through ^vorable negotiations for purchase of equipment and costs of utilities and supplies. Finally, it may be possible to further reduce costs in the final engineering and construction of the plant. Costs quoted in the preceeding estimates and in the Appendix are generally standard quoted ^ates for equipment, utilities and labor involved in installation. All of these may be expected to be affected by the final designs and purchase negotiations for the plant and equipment. Further reductions in costs may be realized through favorable arrangements for financing. For the purposes of cost estimating, it was assumed that 75% of plant costs would be financed and the remainder of the plant costs and working capital would be equity capital furnished by the stockholders. Under this arrangement the total stock held would require a cash investment of $491,587.25 and would yield an estimated $77,601.21 at the end of the first year of operation for an estimated return on the stockholders investment of 15.8% after taxes. (See attached balance sheet and operating statement.) 98 Pro Forma Balance Sheet At End of One Year of Operation Assets Current Assets Clash" $ 225,165.98 Accounts Receivable 83,125.00 Inventory 25,490.00 Supplies 5,709.00 Total Current Assets $ 354,189.98 Qther Assets Land 8,000.00 Plant (Includes Building, Fixtures and Equipment) 1,455,529.90 "i;463,529\90 Less Accumulated Depreciation 57,517.64 Total Other Assets 1,406,012.26 Total Assets 1,745,502.24 Liabilities and Capital Liabilities Accounts Payable $ 25,968.18 Federal Income Tax Payable 76,201,21 Loan Payable 1,074,564.39 Total Liabilities 1,176,733.78 Capital Retained Earnings 77,181.21 Common Stock 491,5 8 7.2 5 Total Capital 568,768,46 Total Liabilities and Capital 1,745,502.24 99 Pro Forma Operating Statement At End of One Year of Operation Gross Sales Less Discounts and Allowances Net Sales Cost of Goods Sold Materials' $114,381, ,01 Production Labor 184,312, ,18 Fuel 270,031, ,12 Power 52,209, , 05 Water 1,45 3, ,02 Total Goods Available for sale $572,386, ,38 Less Inventory Ending 25,490, ,00 Cost of Goods Sold $997,500.00 9,975.00 $$87;525.00 546,896.38 Gross Margin on Sales Operating Expenses Non-productive Labor Supplies Telephone Other Expenses Depreciation Taxes Fire Insurance Legal and Auditing Sales Expense Interest Expense 1 Total Expenses Net Income Before Taxes Corporate Income Tax o Net Income $440,628.62 $ 51 ,850, ,00 68 ,509, ,78 480, ,00 34 ,300, ,00 57 ,517, ,64 23 ,654, ,24 4 ,308, ,86 4 ,987, ,50 19 ,950, ,00 52 ,138, ,18 $286,826.20 153,802.42 $ 76 ,201,21 $ 77,601.21 1. First Year Interest on Loan 2. Principal pavm^nt of $23,081.54 to be paid from current income. 100 NECESSARY CONDITIONS FOR PROFITABLE PLANT OPERATION The preceeding discussion is based on several assumptions in matters of policy and operating practices which cannot be anticipated in a study such as this. These include the favorable outcome of negotiations for purchase of land and equipment, for power, water and fuel, and an efficient plant management and sales force, as well as the full consideration of marketing and other factors pointed our elsewhere in this report. The purpose of this study is to determine whether the establishment of a brick plant is feasible or unfeasible. It is believed that all available evidence points to the feasibility of the proposed operation. It should be emphasized that all of these conditions, policies and practices will have a direct bearing on the profit producing potential of this industry. Further explor- ation and testing of the raw materials deposit and final plant engineering and design may dictate changes or requirements which could result ii. lowered costs and greater profits. Therefore, due to the generally conservative estimates used throughout this report, and the considerable latitude available to management in purchase negotiations, engineering and design, and operational and marketing practices , this report should be considered as an indication of the feasibility of the proposed plant, but not as a final determination of the maximum potential for profitable investment and operation. CONCLUSIONS 1. The establishment of a manufacturing plant capable of producing 35,000,000 bricks per year would appear to be a feasible undertaking in the Bristol-Blountstown area of West Florida. 2. Estimates of installation, operating and unit production costs as well as analysis of costs and returns indicate that such an undertaking should provide an attractive profit incentive to investors. 3. Estimates of costs and projections of returns given in this report are based on assumptions regarding the outcome of negotiations for purchase of equipment and other items, operating procedures and policies, financing of plant, in- stallation costs , final engineering designs and other factors affecting costs of production. Because these factors cannot be fully evaluated, except by those in a position to secure firm commitments through negotiations, the estimated costs and returns given in this report should be taken as a conservative indication of overall project feasibility and not as an ultimate determination of maximum on invested capital. 101 PART IV. ADDITIONAL FACTORS INFLUENCING FEASIBILITY AVAILABILITY OF PLANT SITES AND LAND COSTS In addition to availability of raw materials and the economics of manufacturing and marketing, there are a number of other factors to be considered in evaluating the feasibility of an industrial plant. These include labor conditions, cost of labor, availability of utilities and services, cost and availability of plant sites, and other factors. Plant site costs and costs of mineral-bearing properties are not discussed in detail because such a discussion would necessarily be based on at least preliminary negotiations for purchase. Since it is not the purpose of this report to actually select and recom- mend these sites, and since actual costs probably could not be determined accurately unless the negotiators were based on estimates which should be entirely sufficient for the purpose of deter- mining feasibility. The cost of the plant site itself is included in Appendix 4, The sum of $5,000.00 for the purchase of ten acres is used for the purpose of cost estimation only. Because the undeveloped nature of the property in the general areas suitable for plant locations should result in relatively low land costs, it is unlikely that actual purchase costs will be significantly higher than the figure used in the estimate. Numerous possibilities exist in the area for location of the actual plant site, and it is not to be expected that problems will arise in the selection of a suitable plant site which can be purchased at a reasonable cost. To insure the availability of desirable property for plant sites and for mineral production, the Liberty County Development Commit- tee has secured options on several tracts of land to be made available for industrial development. Criteria for nlant site selection will be discussed in greater detail in a later section of this report. The values of mineral bearing lands are not well established in West Florida, and for this reason the purchase cost of such lands cannot be accurately estimated. A land purchase price for these lands has been estimated at $300.00 to $600.00 per acre; it may prove desirable, however, to lease the clay-bearing lands rather than purchase the properties. In either case, however, when the c^st Der ton of raw material is determined there should be little, if any, difference in material costs whether the land is leased or purchased. It is not anticipated that availabilitv of mineral producing land for lease or purchase will prove to te a problem. 102 Characteristics and Availability of Labor As pointed out earlier in this report, the labor force needed for the operation of the plant under consideration need not be either large or highly skilled. The plant has been de- signed with a relatively high degree of automation to allow for greater efficiency. All equipment, however, is simple enough to operate so that workers with average qualifications can easily be trained on the job. The total population of the Redevelopment Area is approx- imately 90,000. The total labor force of the Area, as given by the 1960 Census of Population totals over 28,000. Wage rates in the local plant area are as nearly as can be determined generally somewhat lower than the scheduled wages listed in the labor cost estimates. It is not anticipated that competition for labor will be a problem in the area. With current employment levels such that the area has been designated as a Redevelopment Area, it is to be expected that the plant proposed here should have no difficulty in obtaining a reliable labor force. Even if labor were in short supply, it would seem that a new industry desiring to locate in the area considered in this report would have no difficulty in attracting personnel. In addition to the incentive provided by steady employment and good wages, the area has much to offer for enjoyable living as well as adequately providing the necessities of life. The cities and towns in the area, although small, are lively, growing, and attractive communities. Schools and hospitals are adequate, as are water, utilities, and sewage disposal systems. The area is not too far distant from larger centers of population. Recreational possibilities are almost unlimited with numerous lakes, streams, and the Gulf of Mexico nearby. A moderate climate allows for full enjoyment of outdoor recreational opportunities, which include hunting, fishing, boating, swimming and picnicking. Local Availability of Gas, Power, Water and Waste Disposal Facilities In February, 19 57, the Federal Power Commission granted approval to the Houston, Texas Gas and Oil Corporation to con- struct a natural gas pipeline system extending from the east bank of the Mississippi River across the coastal areas of Mississippi and Alabama, through the western part of Florida and then extending south through the western part of Florida and then extending south through the peninsula of Florida to a terminus in Dade County. Natural gas is presently marketed in Florida by the Florida Gas Transmission Company. The completion of this pipeline system through Redevelopment 103 Area A has made available a low cost source of fuel to industries wishing to locate in that area. The present main pipeline and lateral lines provide a basic network from which industry could be supplied at any of the possible sites proposed in this report. The main line traverses Area A in a general east-southeast direction, passing eleven miles south of Chipley, approximately fifteen miles south of Marianna, and just north of Blountstown and Bristol. Lateral lines serve Chipley, Marianna and other principal towns in the area. Additional lines of appropriate capacity have been built to serve industries in the area, For the purpose of determining the unit cost of product a gas cost of 3.8 cents per therm was used. This is the estimated cost of service at the natural gas main line and location of the plant at this site would require trucking of raw materials approx- imately nine miles. An alternative arrangement is possible which, while requiring a larger capital investment, would lower the unit cost of product and increase profits by reducing the cost of transportation of clay from the mine to the plant. The Florida Gas Transmission Company has provided estimates for costs of pipeline construction to two general locations - two miles south of Bristol on the Apalachicola River and six miles south of Bristol on the river. The cost to the buyer - in the form of an aid to construction cost is estimated at $74,000 for the former and $153,000 for the latter site. Since a cost of transportation of approximately 40 cents per ton would be required if the plant were located near the main line, the above costs present a strong argument for location of the plant site near the deposit, because the initial cost of pipeline installation would be offset by the savings in raw materials cost within a few years. The area is supplied with electric power by the Gulf Power Company and the Florida Public Utilities Company. Estimates of power costs used in determining the production costs were furnished by the Florida Public Utilities Company of Marianna, The development of an adequate supply of good quality water for the use in the manufacturing process and for sanitary and drinking purposes is not a problem in Redevelopment Area A. The entire area is underlain by an extensive aquifer containing abun- dant supplies of very pure water. Water can be supplied either from wells drilled to depths of 100 to 500 feet, or it can be purchased from municipal systems if the plant site is served by such a system. For the purpose of this report it is assumed that water will be produced from a well at a cost of 20C per thousand gallons. A comparable cost should be possible if the plant is located within an area of municipal water distribution. Waste disposal does not present a problem at any of the possible locations mentioned in this report. The industrial waste 104 produced in this type of plant are neither harmful nor difficult to dispose of. The disposal of sanitary waste material, which in terms of volume, will probably be as great as the industrial wastes, can be handled either by the system provided for in the cost esti- mate or by a municipal system if the plant site is located near one of the towns in the area. Summary of Florida Tax Laws Income Tax - There is no state income tax on either individuals or corporations. The state income tax is forbidden by the Florida Constitution, and only in the event of a Constitutional amendment could a state income tax be levied. State Ad Valorem Tax - The State of Florida does not impose an ad valorem tax on real properties. Taxes on real property are the domain of cities and counties and , in general real property is assessed at 20 to 70 percent of recent market value. In Calhoun County, property is assessed at 29.78% of value, with a county-wide tax rate of 55 mills. Liberty County, which is di- vided into three tax districts assesses property at 60.00% of value and has an average tax rate of 20.00 mills. A recent de- cision of the Florida Supreme Court has, however, upheld a statute requiring that all property shall be assessed at "just value". Corporate Organization and Qualification Fees - Corporations organized within the state pay fees based upon the authorized capital stock at the following rates : Authorized Capital Stock with Par Value Up to and including $125,000.00, $2.00 for each $1,000.00 of par value stock Over $125,000.00 but not over $1,000,000.00, $250.00 plus 50* per $1,000.00 of par value stock Over $1,000,000.00 but not over $2,000,000.00, $687.50 plus 25* per $1,000.00 of par value stock Over $2,000,000.00, $937.50 plus 10C per $1,000.00 of par value stock over $2,000,000.00 Minimum Fee: $10.00 Filing Permit: $5.00 Corporations also pay fees for increase in authorized capital stock by amendment or consolidation at the same rate as initial fees. 105 $ 20.00 $ 50 00 $ 100.00 $ 150.00 $ 200.00 $ 400.00 $ 1,000.00 $ 1,500.00 $ 2,000.00 For receiving and filing a certificate of dissolution, amended certificate of incorporation, or decrease of capital, a fee of $10.00 is charged. Annual Corporation Franchise Tax - All corporations pay an annual franchise tax based on invested capital represented by shares of stock outstanding, as follows: Outstanding Capital Stock Tax Not over $10,000. Over $10,000 but not over $25,000 Over $25,000 but not over $50,000 Over $50,000 but not over $100,00 Over $100,000 but not over $200,000 Over $200,000 but not over $500,000 Over $500,000 but not over $1 Million Over $1 Million but not over $2 Million Over $2 Million State and County Manufacturer's License - The annual charge for this license is $7.50 plus $1.50 for each employee. The County Judge's issuing fee is 25C. The maximum charge for this license is $150.00 plus the 25C issuing fee. State Intangible Personal Property Tax - All corporations organized in the State are required to file an annual return to the County Tax Assessor covering money, stocks, bonds, mortgages, notes, contracts for deeds, accounts receivable, and annuities whether such properties are held in the State or elsewhere. The following schedules apply to intangible personal property: Class A : Money, bank deposits, certified checks, money placed in savings and loan associations, tax rate - 10* per $1,000.00. Class B : All stocks and bonds, except U. S. Government and Florida municipal bonds. tax rate - $1.00 per $1,000.00. Class C : Obligations secured by mortgages on Florida real estate. tax rate - $2.00 per $1,000.00. (Before a mortgage can be recorded this tax must be paid to the tax collector, and this is the only time intangible tax is paid on the obligation.) Class D : Unsecured accounts and notes receivable, mortgages on property outside Florida, contracts for deeds, annuities, and all other classes of intangible property not included in Classes A, B, or C above, tax rate - $1.00 per $1,000.00. 106 Sales Tax - While the State of Florida has a 3 percent sales tax, business and industry is affected by this tax (other than acting as collectors) only to the extent that they are consumers in final purchase. Materials which are component parts or used in processing are exempt from this tax. There is also a limitation of the tax to $1,000.00 for a "single purchase at a single location, delivered within six months from the date of order, when such machinery or equipment is for use in manufacturing cr processing of tangible personal property for sale." Effects of Tax Structure on Industrial Development - The effects of taxation on the location and operation of industry is a diffi- cult factor to evaluate because of differences in levels of assess- ment and differences in the qualities of service for which the taxes are paid. Available information suggests that there is no firm basis for a belief that current differences in the State and local taxes represent "an important factor in the location of industry. The reason for this is that State and local taxes represent only a minor part of the operating costs of a business. Rates of taxation are likely to be important only when all other costs are equal. In Redevelopment Area A the only possible effect that tax- ation could have on the selection of an industrial site would grow out of differentials in levels of assessment and rates of taxation between the counties in which the industry may locate. These slight differences will almost certainly be outweighed by factors such as availability of raw materials and transportation costs and as the recent Supreme Court ruling, requiring assessment of property at just value, begins to take effect, even these differences are likely to disappear. Because the new law limits the cut in millage and will, because of the homestead exemption law, broaden the tax base, and thus provide additional revenue, it should be unnecessary for counties or cities to place a heavy tax burden on new industry. In general, it may be siad that State tax laws in Florida are favorable to industry. This is because of the relatively high tax burden placed on the consumer - an outgrowth of the heavy tourist spending in the State, and the relatively low tax burden placed on the producer - a policy which has prevailed because of the desire to encourage industrial development. There are no special laws or regulations governing the pro- duction or sale of clay products or the mining of raw materials for the use in the clay products industry. CRITERIA FOR SELECTION OF THE PLANT SITE The foregoing discussion, indicating the feasibility of es- tablishing a brick plant, is based on several assumptions which can be valid only if the chosen plant site meets certain require- ments. There are reasons to believe that several possible sites 107 with equal advantages may be present in the general area, and until this can be determined to some degree of certainty by ne- gotiations for land, utilities and other items. It would be pre- mature to recommend a specific plant site location, A careful evaluation must be made of all of the factors which will affect the costs of installation, operation, and production. Several locational factors normally affecting the economics of plant operation would appear to be essentially equal through- out the general area. These are: 1. Proximity to Markets 2. Transportation 3. Labor Cost and Availability 4. Availability of Utilities Other locational factors will have a more direct effect on the economics of plant operation and should be carefully weighed in reaching a decision on the selection of the plant site. These are : 1. Availability and Cost of Raw Materials . This will be affected primarily by cost of transportation of raw materials from the mine to the plant as other factors may indicate the necessity of locating the plant at some distance from the source of raw materials. 2. Cost of Utilities - The cost of utilities will, to a . considerable extent, affect the location of the plant. A location must be chosen which can be furnished with gas, electricity and water at the most economical rates . 3. Tax Structure - Since the proposed industry has a choice of two counties in which to locate, the local tax structure may have some bearing on site selec- tion. In areas where industrial tax rates are not well established due to a previous lack of industry, the taxes assessed on industry may be established, through negotiation, prior to the final selection of the plant location, 4. Site Availability and Cost - The availability of under- developed or relatively low cost land in the general areas indicates that high land costs should not be a limiting fact in site selection, because land costs are a relatively small percentage of total instal- lation costs. It is far more important to select a site which will result in continued savings in costs of utilities and raw materials transportation than to seek low-cost acreage for the plant site. 5. Barge Loading and Docking Facilities - The market ana- lysis in part I of this report emphasizes the need for ready access and proximity to adequate barge loading and docking facilities. This factor will have an important bearing on plant location. 108 inity Participation and Attitudes - The attitudes ilent in the local communities toward the loca- Commui preva! tion of the industry may under certain conditions have an important bearing on plant location. In this case it would seem that the willingness of the community to welcome industry and to actively assist in developing an attractive setting for industry will have a direct effect on plant location. Bristol and Blountstown are both actively interested in attracting industry and discussions with community leaders in both towns suggest a willingness to participate in a local program to locate industry. Both towns have plans for port development and for providing industrial sites adjacent to port facilities. The realization of these plans will undoubtedly have some effect on future industrial locations in the area. 109 FINAL CONCLUSIONS 1. A study of the market potential for a Bristol-Blountstown based brick plant indicates a probable demand of 100,000,000 bricks per year in the market area. 2. A plant located in the Bristol-Blountstown area could reasonably expect to capture thirty to thirty-five percent of the existing brick market, for a total annual sales of thirty to thirty-five million bricks per year. 3. A portion of the market, the Tampa Bay area, would be served by barge transportation. 4. Several areas which are capable of producing raw materials of sufficiently high quality for commercial brick production are present in the Bristol-Blountstown area. 5. Reserves of these materials are present in sufficient quantities to supply a brick industry throughout the economic life of a brick plant. 6. Raw materials can be produced at sufficiently low costs to permit economical manufacturing. 7. The preliminary plant designs and cost estimates indicate that bricks can be produced at a cost of approximately $25.00 per thousand. With an F.O.B. plant site sales cost of $28.00 to $29.00 per thousand. The plant should be in a position to market competitively throughout the market area. 8. Depending upon the actual arrangements made for financing plant installation and other costs, as we] 1 as a number of other factors to be determined by the actual investors and builders of the plant, conservative estimates of return on equity capital would indicate a profit range of 15 to 16 percent. Alternative financial arrangements, site locational factors , final engineering of the plant and other factors could increase this estimate significantly. 9. It is concluded that proposed establishment of a brick industry in the Bristol-Blountstown area is feasible. An evaluation of all available data indicates that all necessary conditions for profitable operation can be met and that a sufficient profit incentive exists to justify the establish- ment of the plant , 110 APPENDIX I Logs of Drill Holes and Outcrop Sample Descriptions Location No. 1 - Drill Hole Depth (feet) Description 0-1 Overburden. Sand with minor amounts of clay. Grades into: 1-4 Clay, red and gray mottled, silty, plastic, very dense. Grades into: 4-7 Clay, gray with some red streaks, slightly silty, dense and plastic, with some red and yellow iron oxide staining. Grades into: 7-10 Clay, red and gray mottled, silty, plastic and dense. Abandoned at total depth of 10' without penetrating entire clay section. Sample Designation Sample A - Composite sample 1' - 10' Sample B - 1' - 4' depth interval Sample C - 4' - 7' depth interval Sample D - 7' - 10' depth interval Location No. 2 - Drill Hcle Depth (feet) Description 0-1 Overburden, black topsoil. 1-4 Overburden, sand, medium grained, yellow with some clay. 4-7 Clay, gray, slightly silty, plastic and very dense, forced to abandon hole at depth of 7' without penetrating entire clay section. Ill Appendix I continued Sample Designation Sample E - 4 ' - 7 ' depth interval ,, total sample. Location No. 3 - Drill Hole Depth (feet) Description 0-1 Overburden; silty, sandy clay. 2-6 Clay, red to yellow with some gray, iron stained, plastic, slightly silty and very dense. Forced to abandon at total depth of 6' without penetrating entire clay section. Sample Designation Sample F - 2' - 6' depth interval, total sample. Location No. 4 - Drill Hole " I «— — — 3— — — m^ mum— «»MMMM T« P ill. ■■ ! 1 , 111 ■ !■■ Depth (feet) Description 0-1 Overburden, topsoil. 1-2 Overburden, hard sandy clay. 2-4 Clay, red and gray mottled, plastic, slightly silty, dense. 4-8 Clay, gray with streaks of yellow, iron stained, very sticky and plastic, with some organic material and very little silt. 8-10 Clay, stiff and dense, plastic, gray in color. 10-12 Clay, as above but red and yellow mottled. Abandoned at 12' without penetrating entire clay section. Sample Designation Sample G - Composite sample 2' - 12'. Sample H - 4' - 12' depth interval. 112 Appendix I continued Location No. 5 - Drill Hole Depth (feet) Description 0-2 Overburden, topsoil. 2-6 Clay, red with streaks of yellow, silty, plastic and very dense. 6-10 Clay, as above but with some fine sand, becoming more sandy and micaceous with depth. Abandoned at depth of 10' . Sample Designation Sample J - 2' - 6' depth interval. Location No. 6 - Roadcut Depth (in feet from Description top of roadcut) 0-2 Overburden, soil and sand. 2-12 Clay, red, yellow and gray mottled, plastic, dense. 12-14 As above (reported by road contractor that an additional two feet of similar material was removed to install culvert). Covered interval not sampled. Sample Designation Sample K - 2' - 12'. Total exposed interval. Location No. 7 - Roadcut Depth (in feet from Description top of roadcut) 0-1 Overburden, sand and soil. 1-3 Clay, red and yellow dense and plastic, oxidized on surface. 3-6 Clay, as above but gray with yellow iron staining. 113 Appendix I continued Sample Designation Sample L - 1' - 6', total exposed interval. Location No, 8 - Drill Hole Depth (feet) Description 0-1 Overburden, sand ans topsoil. 1-4 Clay, yellow, plastic, slightly silty, dense. 4-6 Clay, as above, but changing in color with in- creasing depth to gray with some reddish streaks. Abandoned at total depth of 8'. Sample Designation Sample M - Composite sample 1* - 8'. 114 APPENDIX 2 DETAILED TEST RESULTS SAMPLES A - P (Minutes) Simpson Mixer Water Sample Firing Time Added No. Temp. (°F) 1950 Wet Dry 4 0.5 Cc. 1500 2050 A 2150 2250 1950 5 J. 5 1700 2050 B 2150 2250 1950 4 0.5 1750 2050 C 2150 2250 1950 4 0.5 1750 2050 D 2150 2250 1950 2.5 0.5 1200 2050 E 2150 2250 1950 3 0.5 1450 2050 F 2150 2250 Vari- Vacuum, Extrusion drive Lbs ♦ Behavior 3.75 26.5 A 3.75 26.5 3.75 26.5 A 3.75 26.5 3.75 26.5 A 3.75 26.5 115 Samples A - F continued Sample No. A B D % Water Plasticity % Dry Plasticity PSI Shrinkage 18.6 19.8 19.9 20.2 20.4 22. 4 79.7 52.9 62.1 48.8 45.4 56.0 4.7 4.9 6.0 6.2 5.8 6.0 % Fired % Total Shrinkage Shrinkage 2.3 7.0 4. 8 9.5 5.1 9.8 5.4 10.1 2.9 7.8 4.3 9.2 4.7 9.6 4.9 9.8 1.8 7.8 4.6 10.6 5.0 11.0 5.1 11.1 2.1 8.3 4.1 10.3 4.7 10.9 5.2 11.4 1.3 7,1 2.6 8.4 3.9 9.7 I.S. I.S. 2.6 8.6 5.4 11.4 6.1 12.1 5.5 11.5 116 Samples A - F continued ASTM Sample Dry Fired Absorption C/B Firing No. Strength 641 Strength 1659 24 hr. 14.4 Total 16.7 Ratio 0.86 Range 2290 10.3 13.8 0.75 A 2110 8.7 12.4 0.74 2050 to 2310 8.1 12.4 0.66 2250 396 1062 17.2 19.4 0.89 1620 12.6 16.2 0.78 B 1550 11.6 15.4 0.75 2050 to 1700 10.9 14.6 0.74 2250 833 2210 13.8 15.3 0.90 3175 7.6 10.3 0.74 C 3210 5.8 8.8 0.66 2050 to 3540 5.0 8.2 0.60 2250 912 1800 12.8 15.9 0.80 2395 7.5 11.8 0.64 D 2365 6.3 11.7 0.58 2050 to 2540 5.3 10.0 0.52 2250 360 941 17.2 19.9 0.87 1065 10.5 14.5 0.75 E 1200 11.6 15.4 0.76 2050 to I.S. I.S. I.S. I.S. 2150 388 1350 17.5 19.4 0.90 lain 10.5 13.6 0.77 F 2190 9.1 12.1 0.75 2050 to 2210 8.0 11.4 0.71 2250 117 APPENDIX 2 DETAILED TEST RESULTS SAMPLES G - M (Minutes ) Simpson Mixer Water Sample Firing Time Added Vari- Vacuum, Extrusion No. Temp. (°F) Wet Dry Cc. drive Lbs . Behavior 1950 2050 G 2150 2250 1950 2050 H 2150 2250 1950 2050 J 2150 2250 1950 2050 K 2150 2250 1950 2050 L 2150 2250 1950 2050 M 2150 2250 2.5 0.5 1050 3.75 26.5 2.0 0.5 700 3.75 26.5 3.5 0.5 2000 3.75 26.5 A 4.5 0.5 1900 3.75 26.5 3.0 0.5 1500 3.75 26.5 4.0 0.5 2200 3.75 26.5 A 118 Samples G - M continued Sample % Water Plasticity % Dry % Fired % Total No. Plasticity PSI Shrinkage Shrinkage Shrinkage 19.7 52.6 6.1 H K M 19.9 43.1 6.3 23.8 48.9 6.6 22.2 49.2 6.9 21.2 51.8 6.5 24.0 29.2 7.0 1.0 7 . 1 2.8 8.9 3.4 9.5 I.S. I.S 0.7 7.0 2.2 8.5 3.2 9.5 I.S. I.S. 2.3 8.9 5.5 12.1 5.6 12.4 6.2 12.8 2.3 9.2 4.1 11.0 4.8 11.7 4.8 11.7 2.4 8.9 4.4 10.9 5.1 11.6 5.3 11.8 2.0 9.0 4.4 11.4 4.5 11.5 4.9 11.9 119 Samples G - M continued Sample Dry No. Streni 469 503 H 314 952 K 859 249 M ASTM Fired Absorption C/B Firing Strength 24 hr. Total Ratio Range 1062 15.8 18.3 0.87 1220 12.6 16.9 0.75 1480 10.7 15.2 0.70 2050 to I.S. I.S. I.S. I.S. 2150 1023 15.5 18.2 0.85 1095 12.5 16.9 0.74 1375 9.9 14.6 0.67 2050 to I.S. I.S. I.S. I.S. 2150 998 18.2 20.9 0.87 1399 11.5 15.4 0.75 1398 9.9 13.9 0.71 2050 to 1430 9.2 13.0 0.70 2250 2430 12.6 16.8 0.80 3130 8.5 12.1 0.71 3150 6.7 10.8 0.62 1950 to 3180 5.9 9.7 0.60 2250 2440 13.0 15.5 0.84 3230 11.0 11.5 0.96 \ 3300 6.0 9.7 0.62 1950 to 3650 5.4 9.5 0.57 2250 929 19.3 21.4 0.90 1440 12.8 15.9 0.81 1450 11.6 15.1 0.77 2050 to 1465 10.9 14.7 0.74 2250 120 APPENDIX 3 Graphs showing properties of clay at various temperatures. 121 SAMPLE A SAMPLE B * ^ ** rf>° O «tf * ' 1 1 4\C> m o o Jp A «.0 #,0 fc 4J? ^ V* ^o* tf* e f to rO □ >■ O 1 i <0°- HO. ! CO rO • r 0- o z. U_ h- ±j O < r £T or Ma /> LU olcQ ^m. < ^ CM 1 — CvJ 'D < _l X or o. x o. q. _ CVJ ^J- CVJ CVJ ~ ' D in *— ' 0. 2 D / O O \ O 1- — 0. \i • \ 3 or O CO 00 d" \ / x K tn- Q°io„ / x ', /"' *-•«*.. < — / * *»». % / 5~ S* Q / . LU / *• K LL i co d" i *. / " * T3 i a * / * * • c 1 • , o 1 / * >- Q jo. / '*• _— - — * DC — / -^i.-""" "^ m / *^ — — — » Q 1 / ^ / ~*» ~ ** * „ UJ I / / s O o *• I / "'■'--• / / C/) < d" / / / / / / / Z / / I / < CL z or X / / / / // CO / / »n- 0^ CVJ o I / APPENDIX 3, GRAPHS OF CLAY PROPERTIES AT VARIOUS TEMPERATURES 122 SAMPLE c SAMPLE D *\** • • m • ,/ ^ # ^ ^ • r tf>- *f>. / rO ro > O 1 i i J OS- HO. (/) ro 1 \ r < j 1 — _l i i LD a. o 1 Z u. K j jj o < j r or LU or olco / r?m. * CM 1 -CVj j n 1 <* I -J i Dl - / cc / O. -»CSJ Jo. S- 3 / 3 / _ CM j \n / a. 2 / o o / \ o h- — CL / \ z o 00 / \ ■"* en O / \ / \ Ek). ^ — / \ / \ s >5 / N / \ D O / " N / x XI / N - £ / / • V j_ «>.. / / ^ ^ 1 o / / x - c o £2- 1 / «*■•• "* - " **" 1 *~ 1 *• ^^^ _ ^ Q i / /'• 1 a •> LU / / ' 1 s "• O < d" / / / / / / / ' < z 1 / 1 ^ -1 CL X en / s 1 * 1 / \ y ir>- >© »r>- CM / 6" / APPENDIX 3, GRAPHS OF CLAY PROPERTIES AT VARIOUS TEMPERATURES 123 SAMPLE E SAMPLE f / / / / S * # **° 4* • «">_ «o. rO rO □ >- H O ! *~°- CO rO n r < 1 _ _l 1 D 0_ o Z U_ 1- jj O < EC OT UJ or oloD i?iO. * CM 1 — C\J /> et _J 1. 3 —; cr o_ *o. 9- D ->ou Tf- cm — CVJ \n *»"* CL 2 O O \ / o t- \ \ / z Q. cr 00 . \ \ \ / _ o CO dr \ • A ir m- 5m_ ^ — . \ •./ v S ** \ / *_ Q \ UJ : 3C • / J. 1 6" X3 1 ^r m *' / • <•" *s C o 1 \j£ m ' / * >-o- is- / / Q i / / 0. UJ 1 y / / cr> < d" 1 s s s / / // '•• < 2 s // _j CL or en si • / »f>- s.0 lf>- 0^ CVJ d" APPENDIX 3, GRAPHS OF CLAY PROPERTIES AT VARIOUS TEMPERATURES 124 SAMPLE G SAMPLE H ^\° • • • • >* ^ <»*° 0*° v*° n l* a e o • a #,o -f, N ^ .^o v* T° ^ s n* f>- tf>- rO to > O 1 i a. o Z u. 1- xJ o < X — cr UJ cr olffl ^10. ^ CVJ 1 _ CJ /> < _l 3. cr *o. 5J" CVJ CO q. D 3 7) *""* n. z o o o K • — Q. \ "\ Z cr o en 00 \ \ \ \ rm. 5»o- ^ — Q s* S7 's/ XI / r J_ 1 o y ' './ ^> 1 / c 1 ^^ •, o 1 to. |g. ^^ •. a: — D i / ^" / s in UJ < o 1 «^ / / / / / ' / / / / s s < z / / / ^" «• -j CL cr X / • // if>- CM 6" APPENDIX 3, GRAPHS OF CLAY PROPERTIES AT VARIOUS TEMPERATURES 125 SAMPLE j SAMPLE K -0° / / / / *° f CO. m_ fO rO □ >■ O 1 i HO. C/> rO ! r < i >- _1 CL O z U. K jj O < 10 or LU or OJCD ^lO_ 5 C\J 1 — — ' X z O O '• O h- X • — Q. \ z or o CD '.\ — * co o '•. \ / N r jo- 5 m. «5 — V. / x - / N / X / N 5 $* '*-•_ •. /" LU / S r / • ~"'~ / S - c o bo- 1 1 CD 6" / K / f • / * / / 1 :S 1 '• - — or — / / '•• Q 1 / / / s „ UJ // / / O o <^- / / h- < < z 6" 4 / / / / / / / / s _l — / / 1 '••_ 0- or CO '•• lf>- 0^ CVJ d" APPENDIX 3, GRAPHS OF CLAY PROPERTIES AT VARIOUS TEMPERATURES 126 SAMPLE l SAMPLE M ,/V y / / • , \0 . o o V A ^O *P *P 9 y ^ y»° .,0* *v* • y tf>- <"- rO rO > O 1 CO rO r < 1 _l 1 z> Q. O z U. H- lU O < 3: LT UJ or ^10. _ - gin. / \ __ 2 $5 / \ Q / •. V /• UJ r / *• x / '**. "O 1 CD o / — — "•' sr - ."" "" - c o 1 i / ^ / / ••• bo- o- / / // or— 1 \ / 1 / O 1 \ ' « UJ \ / o o ^> 1 / / / to < b" / / / / • / < 2 / / / / _J Q. or i CO / * «f>- v9 lf>— 0^ CSJ 6" APPENDIX 3, GRAPHS OF CLAY PROPERTIES AT VARIOUS TEMPERATURES 127 APPENDIX 4 BRICK PLANT - EQUIPMENT AND BUILDINGS ITEM 1 Hopper - 10' x 10' in pit - 12' deep with sump pump and 5' culvert. Tunnel on 20° slope to surface. 24" gate on hopper. 2 Apron feeder - 30" x 8', with varidrive. 3 Belt conveyor - 30" x 60' - series 6000 - 20°. Idlers-Loading class "B" speed 100 FPM - 8 hours per day. Operation - rated 80 tons per hour. Inclined on 20° rise, and fitted with a hopper type discharge chute and scrap iron trap. 4 Granulator - 34" x 16'. 5 Belt conveyor - 30" x 25' Idlers-loading class-fitted with hopper type receiving and discharge chutes. 6 Disintegrator - 24" on 5' x 5' Pit - 6' deep with drain to hopper pit and 5' culvert tunnel on 20° slope to surface. 7 Belt conveyor - 30" x 40'. Idlers-loading class-fitted with hopper type receiving and discharge, chutes. 8 Smooth rolls - 24" on 5' x 5' Pit-6' deep with drain to hop- per pit and 5' culvert tunnel on 20° slope to surface. 9 Belt conveyor - 30" x 40'. Idlers-loading class-fitted with hopper type receiving chute. 10 Hopper 5' x 5' x 2' - with 24" discharge 60° sloping sides- self supporting - to receive from items 9 and 22. 11 Disintegrator - 24" on 5' x 5' Pit - 6' deep with drain to hopper pit and 5' culvert tunnel on 20° slope to surface. 12 Belt conveyor - 80" x 40'. Idlers-loading class-fitted with hopper type receiving chute. 13 Hopper 5' x 5' x 2' - with 24' discharge 60° sloping sides, self supporting - to receive chute. 14 Combination Machine - pugging and de-airing. 18" augers. Pug mill, 28' diam. x 12' long. 2 extra sets, brick dies. 128 ITEM 15 Cutter-brick or tile - 24 bricks/cut, 15 cuts/min. - 68 platens. 16 Off bearing belt conveyor - 24" x 50' - flat belt conveyor - series 5000 with varidrive. 17 Kilncars 320 - 8 1 x 8' - poured refractory top-2,000 brick load, Max. temp. 2300°F 36" track width. 18 Holding Room, size 170' x 500' x 10' clear height. Brick walls, 20 yr. Bonded comm. roof with 1" Insul, Eleven 10' x 10' double hung rubber doors, asphalt floor, lighting-f lourescent , 15 foot candles. 20 roof mounted humidifiers. 8-2 therm per hr 3 gas fired unit heaters to maintain 90% humid, and 90°F utilizing waste heat from kilns. 19 Tunnel kiln-8'6" x 10 x 435, continuous type, Gas fired electronically controlled - 50,000 brick per day kiln output. @ 2300°F and leaving at 80°F. 20 Packaging and strapping machine - 36 jigs - 1 station - 20 second cycle, packaging 500 brick per package. With stand-by hand strapping machine for seconds. 21 Storage yard - 10,000 sq. ft. for 1,000,000 brick. 22 Waste return belt conveyor - 24' x 150'. Idlers - loading class - fitted with hopper type receiving and discharge chutes, in trench 3' x 3' x 100'. Another belt inclines from tunnel at 20° slope with chute to hopper #10. 23 Car type conveyor - with pusher dog attachment. Consisting of: 4650 linear feet double track 36", Rail center - 20# track, 19 turnouts - 7 chain conveyors and drivers. 24 Kiln bldg-size 25' x 500' x 16' clear height. Asbestos siding and roof. Asphalt floor 4-10' x 10' dbl hung rubber doors, lighting - f lourescent-15 foot candles. 25 Office Bldg. 24' x 40 » x 12' clear height. Concrete block walls, 20 yr. commercial roof, concrete and tile floor with toilet rooms, lunch room, lab and 3 offices, furniture, fix- tures and gas fired condition-aire . 26 Dump truck - 3 1/2 cubic yards. Plus 2 sets tires. 27 End loader - 1 cubic yard plus 1 set tires. 129 ITEM 2 8 Fork trucks, 2 required. 29 Pallets - 100. 30 Water well - 6" x 50' pump-100 GPM. Tank - 5,000 gal. 31 Sewer - septic system. 32 Gas distribution. 33 1,000 KVA sub station motor control center. 34 Electrical distribution. 35 Yard lighting. 36 Plant fence and guard House. 37 Graveley Swiftamatic tractor - 3 required. 38 Property - 10 acres and site clearing. 39 Manufacturing buildings. 40 Maintenance tools, electrical repair tools, test equipment 130 APPENDIX 4 PLANT COSTS PRODUCTION TOOLS AND EQUIPMENT HORSEPOWER/ ITEM HOURS/DAYS LABOR COST MATERIAL COST 1 1- 8-365 $ 792 $ 1,827 2 10- 8-3KS 450 7,740 3 7- 8-260 990 6,480 4 150- 8-260 900 13,500 5 2- 8-260 720 4,500 6 50- 8-260 900 12,420 7 3- 8-260 810 5,400 8 75- 8-260 900 13,500 9 3- 8-260 810 5,400 10 180 450 11 50- 8-260 900 12,420 12 3- 8-260 810 5,400 13 180 450 14 300- 8-260 900 32,040 15 7 1/2- 8-260 900 12,960 16 3- 8-260 720 5,400 19 360- 24-365 158 ,000 385,000 20 10- 8-260 11 ,970 23,780 22 5- 8-260 1 ,620 12,420 23 11 ,200 21,600 4,349 ,400 HP/HRS $ 199 ,652 $ 582,417 TOTAL $ 782,069 131 APPENDIX 4 PLANT COSTS OTHER TOOLS AND EQUIPMENT HORSEPOWER/ ITEM HOURS /DAYS LABOR COST MATERIAL COST 17 $28,800 26 4,500 27 12,420 28 29 37 40 2 ,000 2 ,880 5 ,400 1 ,680 $ 57,680 TOTAL $ 57,680 PLANT COSTS PROPERTY, BUILDINGS AND UTILITIES 18 50-2^-365 $117,000 $135,000 21 2,700 4,500 24 25-24-365 31,250 31,250 25 15- 8-360 3,780 5,220 30 5-24-365 180 1,350 31 270 450 32 2,700 4,500 33 2,520 14,400 34 2,700 4,500 35 5-10-365 225 225 36 900 2,160 38 • 3,000 5,000 39 5- 8-260 13,500 16,200 764,650 $180,725 $ 2 2.4 , 7 5 5 HP/HRS TOTAL $405,480 132 APPENDIX 4 SUPPLIES (ANNUAL) Lubrication and Hand tools 1% of production tools and equipment $ 5,824.17 3% of other tools and equipment 1,730.40 Maintenance and spare parts 5% of materials costs 43,242.60 Office supplies 6% of total labor 13,672.61 Gas, oil and maintenance for trucks fork lifts etc., estimated at $60 . 00/month. 60 x 7 x 12 5,040.00 $68,509.72 WORKING CAPITAL 2 MONTHS Materials $15,866.66 Productive Labor 29,337.80 Non-productive Labor, power, water, fuel, supplies, telephone, inventory 79,677.24 Reserve for sales collection 1/2% of annual sales 823.58 $125,705.28 133 APPENDIX 4 DEPRECIATION SCHEDULE TOTAL ANNUAL ITEM YEARS COST COST Production tools and equipment 21 $782,069 $31,303.16 Other tools and equip- ment : 17 6 1/4 $ 28,800 $ 4,608.00 26 6 1/4 4,500 720.00 27 8 1/3 12,420 1,481,00 28 8 1/3 2,000 240.10 29 2 1/2 2,880 1,152.00 37 5 5,400 1,170.00 40 5 1,680 336.00 Buildings and property (less furniture and fixtures) 25 $401,880 $16,075.20 Furniture and fixtures 8 1/3 3,600 432.18 TOTAL ANNUAL DEPRECIATION $57,517.64 134 APPENDIX 5 ACKNOWLEDGEMENTS The number of individuals , companies , government agencies and other organizations which generously responded to requests for in- formation are too numerous to list individually. Producers of clay products, trucking companies, building supply dealers and building contractors were particularly helpful. To all of these, and the individuals and organizations listed below, we express our gratitude. Mr. James H. Aase, Industrial Geologist, Chicago and Northwestern Railroad, Chicago, Illinois. Alabama Geological Survey, University, Alabama Alabama Trucking Association, Birmingham, Alabama. Mr. H. W. Bludworth, Florida Gas Transmission Company, Winter Park, Florida. Dr. B. F. Buie, Department of Geology, Florida State University, Tallahassee, Florida. Mr. Wiley M. Cauthen, Florida Gas Transmission Company, Winter Park, Florida. Mr. Richard J. Councill, General Industrial Geologist, Atlantic Coast Line Railroad, Jacksonville, Florida. Mr. Thurston Crawford, River Transport Company ,- Columbus , Georgia. Mr. George W, Fay, Director, Building Department, Pinellas County, Florida. Federal Housing Authority, Jacksonville, Florida. Florida Development Commission, Tallahassee, Florida. Florida Public Utilities Commission, Tallahassee, Florida. Florida Public Utilities Company, Marianna, Florida. Florida State Board of Health, Jacksonville, Florida. Georgia Department of Industry and Trade, Atlanta, Georgia. Georgia Geological Survey, Atlanta, Georgia. Georgia Public Service Commission, Atlanta, Georgia. Mr. W. H. Hopkins, Southern Brick and Tile Manufacturers Association, Atlanta, Georgia. Interstate Commerce Commission, Jacksonville, Florida. Mr. Deasy Rahn, Bainbridge State Docks, Bainbridge, Georgia. Mr. William D. Reves , Economic Geologist, Florida Geological Survey, Tallahassee, Florida. Seaboard Air Line Railroad, Tallahassee, Florida. Structural Clay Products Institute, Washington, D.C. Structural Clay Products Research Foundation, Geneva, Illinois . 135 Mr. Tuure A. Pasto, Florida Development Commission, Tallahassee, Florida. Mr. Charles Sowell, Florida Development Commission, Tallahassee, Florida. Mr. J. J. Svec, Editor, Brick and Clay Record, Chicago, Illinois . Mr. Edsel. Thomas-»-<-> T \,- County Agent, Liberty County, Bristol., Florida. Mr. George Wurtele, Louisville and Nashville Railroad, Birmingham, Alabama. 136 APPENDIX 6 BIBLIOGRAPHY George Aase £ Associates, Inc., 1962, Feasibility study of a pro- posed Portland cement industry in Redevelopment Area A, west Florida" : Consultants report for Area Redevelopment Adminis- tration , U. S. Department of Commerce, published by Florida Development Commission, Tallahassee, Florida. Bell, Olin G., 1924, A Preliminary Report on the Clays of Florida : Tallahassee, Florida Geological Survey, Fifteenth Annual Report . Brick and Clay Record, Various Issues, Published Monthly: Chicago, Cahners Publishing Company. Buie , B. F. , 1957, Interim report on investigations of clay near Blountstown, Florida : unpublished consultant's report. Calver, James L., 1949, Florida kaolins and clays : Florida Geo- logical Survey, Information Circular No. 2 . Cavallaro, I.L., 1961, A Study of Marketing and Other Factors in Establishing a Brick" Manufacturing Plant in Florida's Big Bend Area : Tallahassee , Florida State University, Unpublished iTI S~I Graduate Study. Greaves-Walker, A. F. , et al, 1949, The Development of a Structural Clay Products Industry Using Florida Clays : Gainesville , University of Florida, Engineering and Industrial Experiment Station Bulletin No. 30. Greaves-Walker, A. F. , et al , 1951, The Development of Lightweight Aggregate from Florida Clays : Gainesville, University of Florida , Engineering and Industrial Experiment Station, Bulletin No. 46. Lang, W. B. , et al , 1940, Clay investigation in the southern states , 1934-35 : U. S~I Geological Survey Bulletin i 9^01. Plummer, Harry, C. , 1962, Brick and Tile Engineering : Washington, D. C. , Structural Clay Products Institute. Structural Clay Products Institute, 1960, Principles of Clay Masonry Construction : Washington, D. C. , Structural Clay Products Institute. 137 Structural Clay Products Institute, 1961, Pocket Guide-Brick and Tile Construction : Washington, D.C., Structural Clay Products Institute. Structural Clay Products Institute, 1962, The Structural Clay Products Indust] Structural Clay Prod ucts Industry Today and Tomorrow : Washington, D . C . , :tural Clay Products Institute. U. S. Bureau of Census, 1953-1962, Current Industrial Reports : Series: M32D, Washington, D. C. , U. S. Department of Commerce. U. S. Bureau of Census, 1962, Exports Annual : Washington, D.C., U. S. Department of Commerce. U. S. Bureau of Census, 1962, Imports Annual : Washington, D.C., U. S. Department of Commerce. U. S. Department of Commerce, 1953-1963, Statistical Abstract of the United States : Washington, D . C . , U . S^ Government Printing Office. U. S. Bureau of Mines, 1954-1962, Minerals Yearbook : Washington, D.C., U. S. Government Printing Office. 138 PENN STATE UNIVERSITY LIBRARIES ADDDDTiaflTEBtD