Town of Cochrane Strategic Plan – Final Report October 2014
term SME (for small and medium enterprises) is used to refer to all establishments under the large
cut-off of 500 employees.159
The average of annual revenues for small and medium-sized businesses in the Concrete Pipe,
Brick and Block Manufacturing industry was $1.2 million in 2010. For profitable firms, average
revenues were $1.4 million and for non-profitable firms, average revenues were $811.2
thousand.160
Manufacturing & Operating Expenses
In general, the three most important categories for manufacturing costs are:
• Cost of materials and supplies.
• Cost of energy, water and vehicle fuel.
• Production worker wages.
In 2011, manufacturing costs in the Concrete Pipe, Brick and Block Manufacturing industry were
dominated by the costs of materials and supplies. These costs are the major factor in its
manufacturing activities, thus the industry is vulnerable to any fluctuation in the prices of materials
and supplies. The costs of materials and supplies (for manufacturing activities) increased from
$287.4 million in 2004 to $361.3 million in 2011, or at a compound annual growth rate of 3.3%.
Between 2010 and 2011 materials and supplies costs decreased -0.8%. In 2011 production wage
costs reached $138.1 million while energy, water and vehicle fuel costs were $29.9 million. The
cost of energy, water and vehicle fuel increased from $20.8 million in 2004 to $29.9 million in
2011, or at an average rate of 5.3% per year. In 2013, there was a 1.8% increase.161
Table 1: Operating expenses: 2010
Concrete Pipe, Brick and Block Manufacturing (NAICS 32733)162
Expense Item
% of Total
Revenues
180.4
14.8%
Amortisation and depletion
52.1
4.3%
Repairs and maintenance
17.8
1.5%
Utilities and telephone/telecommunication
15.3
1.2%
Rent
21.4
2.0%
7.8
1.0%
26.3
2.0%
Labour and commissions
Interest and bank charges
Professional and business fees
159
Value in
$ thousands
Government of Canada (2013). Canadian Industry Statistics (CIS): Concrete Pipe, Brick and Block Manufacturing
(NAICS 32733). Available at: http://tinyurl.com/kx4fg4y
160
Statistics Canada, Canadian Business Patterns Database, December 2012. Available at: http://tinyurl.com/jw4dvg9
161
Statistics Canada, Canadian Business Patterns Database, December 2012. Available at: http://tinyurl.com/jw4dvg9
162
Statistics Canada, special tabulation, unpublished data, Small Business Profiles.
109