Cochrane Five Year Strategic Plan | Page 111

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 Available at: http://tinyurl.com/jw4dvg9 162 Statistics Canada, special tabulation, unpublished data, Small Business Profiles. 109