NAICS 327120 Quarterly Industry Report
Clay Building Material and Refractories Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 327120Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 327120 delivers business owners, acquirers, and financial advisors data-driven valuation insights for the clay building material and refractories sector, drawing on data from the U.S. Census Bureau[5] and the Bureau of Labor Statistics[6]. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 327120 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the clay building material and refractories manufacturing industry.
Industry Definition & Overview
Clay Building Material and Refractories Manufacturing (NAICS 327120) encompasses establishments primarily engaged in shaping, molding, baking, burning, or hardening clay refractories, nonclay refractories, ceramic tile, structural clay tile, brick, and other structural clay building materials. A refractory is a material retaining its shape and chemical identity at extreme temperatures, used in furnace linings, kiln furniture, and steelmaking applications. According to the U.S. Census Bureau[5], roughly 346 businesses operate across 492 establishments, employing over 24,100 workers.
Manufacturing processes include clay mining and preparation through crushing, grinding, and screening; extrusion of brick columns through vacuum auger machines; wire cutting and pressing of individual brick units; tunnel kiln firing at temperatures from 1,800 to 2,400 degrees Fahrenheit; ceramic tile pressing and glazing; and refractory casting, pressing, and sintering. The Bureau of Labor Statistics[6] tracks production roles including auger machine operators, kiln car setters, tunnel kiln operators monitoring firing zones and temperature profiles, tile press operators, refractory mold technicians, and quality inspectors testing compressive strength, absorption rates, and dimensional tolerances.
Per the SBA Office of Advocacy[7], clay brick producers depend heavily on residential and commercial construction activity for demand. Face brick consumption tracks single-family housing starts closely, while structural clay products serve commercial and institutional building projects. Refractory producers serve steel mills, glass plants, cement kilns, and other high-temperature industrial processes where lining replacement drives recurring demand independent of construction cycles.
What's Included in This Industry
- Valuation multiples benchmarked to clay building material and refractory operations
- Revenue and EBITDA trends for domestic brick, tile, and refractory production
- SBA lending data and financing terms for NAICS 327120 businesses
- Comparable transaction data from recent brick and refractory company acquisitions
- Industry risk factors including construction cycles, energy costs, and import competition
- Workforce composition and labor cost benchmarks for clay product manufacturing
- Regional market analysis covering major brick and refractory production centers
- Capital expenditure benchmarks for kilns, extruders, and tile presses
- End-market analysis across residential construction, commercial building, and industrial refractories
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Nonmetallic Mineral Product Manufacturing | 327 |
| Industry Group | Clay Product and Refractory Manufacturing | 3271 |
| NAICS Industry | Clay Building Material and Refractories Manufacturing | 32712 |
| National Industry | Clay Building Material and Refractories Manufacturing | 327120 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 327110 | Pottery, Ceramics, and Plumbing Fixture Manufacturing | Pottery, ceramics, and plumbing fixture manufacturers sharing clay processing and kiln technology but producing vitreous china fixtures and tableware rather than structural products |
| 327310 | Cement Manufacturing | Cement manufacturing operations providing a competing building material used alongside or instead of clay brick in residential and commercial construction applications |
| 327320 | Ready-Mix Concrete Manufacturing | Ready-mix concrete manufacturing operations producing a competing structural material that often substitutes for clay brick in wall, foundation, and paving applications |
| 327999 | All Other Miscellaneous Nonmetallic Mineral Product Manufacturing | Miscellaneous nonmetallic mineral product manufacturers producing competing building products from non-clay mineral materials including stone and mineral fiber products |
| 212319 | Other Crushed and Broken Stone Mining and Quarrying | Other crushed and broken stone mining operators supplying limestone, dolomite, and other mineral raw materials consumed in refractory and clay product manufacturing |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Ohio | 13.6% | 62 |
| 2 | California | 7.9% | 36 |
| 3 | Pennsylvania | 7.4% | 34 |
| 4 | Texas | 5.9% | 27 |
| 5 | Indiana | 5.5% | 25 |
| 6 | North Carolina | 4.6% | 21 |
| 7 | Tennessee | 4.2% | 19 |
| 8 | New York | 3.9% | 18 |
| 9 | Alabama | 3.7% | 17 |
| 10 | Illinois | 3.5% | 16 |
% Of Establishments
0%
14%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
8
Total SBA Loans
$800K
Total Loan Volume
$100K
Average Loan Size
10 yrs
Average Loan Term
14.00%
Average Interest Rate
112
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Clay building material manufacturers qualify as small businesses under the SBA size standards[8] for NAICS 327120, which set the threshold at 750 employees. The SBA 7(a) loan program[9] supports acquisitions of existing brick and refractory operations and working capital for clay and mineral inventory, while the CDC/504 loan program[10] provides long-term fixed-rate financing for tunnel kilns, extrusion equipment, tile presses, and plant expansions. Lenders evaluate clay reserve quality, kiln efficiency, and construction market exposure when underwriting clay product manufacturing loans.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | JPMorgan Chase Bank, National Association | 8 | $800K | $100K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 327120?
NAICS 327120 covers manufacturers producing clay brick, structural clay tile, ceramic tile, clay refractories, and nonclay refractories. Products range from face brick and paving brick for construction to refractory bricks and shapes for furnace linings. Per the U.S. Census Bureau[11], the classification combines structural building products and high-temperature industrial refractories under one code.
How is the clay building material industry structured?
The industry divides into face brick producers serving residential and commercial construction, structural clay product makers producing load-bearing tile and pavers, ceramic tile manufacturers competing in flooring and wall covering markets, and refractory producers serving steel mills and other high-temperature industries. Brick plants require access to quality clay deposits and operate energy-intensive tunnel kilns. Refractory operations typically locate near steel and glass manufacturing customers.
What is the SBA size standard for NAICS 327120?
The SBA classifies a clay building material manufacturer as a small business if it employs fewer than 750 workers, measured as the 24-month average of full-time and part-time employees. Per the SBA size standards table[8], this threshold applies for SBA loan eligibility and federal contracting small business set-aside programs.
What NAICS codes are most closely related to 327120?
Code 327110 covers pottery and ceramics sharing clay processing technology. Code 327310 addresses cement as a competing building material. Market 327320 covers ready-mix concrete. Code 327999 captures other nonmetallic mineral products. Per the Census Bureau[11], the structural clay and refractory focus distinguishes 327120 from the pottery and ceramic fixture emphasis of 327110.
What industries interact most with clay building material manufacturers?
Masonry contractors (238140) install brick and structural clay products. Building material wholesalers (423320) distribute brick and tile to contractors. Steel mills consume refractory linings for furnaces and ladles. Residential builders drive face brick demand through single-family construction. According to the Bureau of Labor Statistics[6], housing starts correlate directly with face brick production volumes.
What specific activities fall under NAICS 327120?
Covered activities include clay mining and preparation, brick extrusion through vacuum auger machines, wire cutting and pressing of brick units, tunnel and periodic kiln firing, ceramic floor and wall tile pressing and glazing, structural clay tile production, refractory brick and shape manufacturing, and refractory castable and monolithic product production for high-temperature industrial applications.
Are clay building material manufacturers eligible for SBA loans?
Yes, clay product producers with fewer than 750 employees qualify for SBA financing. The SBA 7(a) program[9] covers business acquisitions and working capital, while the CDC/504 program[10] finances tunnel kilns, extrusion equipment, and tile pressing lines with long-term fixed-rate terms favorable to capital-intensive operations.
Where are clay building material operations concentrated in the U.S.?
Brick production concentrates near quality clay deposits and major construction markets. The Southeast, Texas, and the Mid-Atlantic host significant brick manufacturing capacity. Refractory producers locate near steel mills and industrial customers in Ohio, Pennsylvania, and the Midwest. Per the Census Bureau[5], the 492 establishments reflect proximity to both raw material sources and construction demand centers.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau data.census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]SBA size standards sba.gov
- [9]SBA 7(a) loan program sba.gov
- [10]CDC/504 loan program sba.gov
- [11]U.S. Census Bureau census.gov
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