 |  | Glazes - for the Self-reliant Potter (GTZ, 1993, 179 p.) | ||
 |  | 4. Decisions | ||
|  | (introduction...) | ||
| | 4.1. Selecting your best firing temperature | ||
| | 4.2. Market factors | ||
| | 4.3. Strength requirements | ||
| | 4.4. Investment and production costs | ||
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As a ceramics entrepreneur, you must start by making decisions: what product? what temperature? how much technology? These decisions depend on your market, raw material and fuel availability. In industrialized countries, where everything is easily available, the decision will usually be based first on the market, and then the best combination of clay body, glazes and kiln can be decided on.
In developing countries, it is usually necessary to start by thinking about raw materials and fuel. Then the product can be selected.
Usually, it is easiest to use the same technology as other producers, as most of the problems will have already been solved. On the other hand, a new type of technology can capture a new market sector with no competition. However, a new technology may cause technical problems that a potter cannot solve without outside help.
Some typical questions for the entrepreneur to answer are given below.
Is high-firing clay available?
If so, it may be best to decide on high temperature ceramics (stoneware or porcelain), as producing reliable glazes will be easier.
Is only low-firing clay available?
If so, it will be necessary to select a low temperature system and to make frits or purchase ready-made ones.
Are ready-made glazes available?
If there is a reliable source of glazes nearby, a lot of trouble can be saved by using these.
What are the fuel constraints?
If only electric firing is available, then only low temperature systems will be practical. If oil or coal is available, the additional costs of using saggers should be compared with the cost of clean-burning fuels.
Most producers decide to enter the ceramics sector because there is already a good market and not enough local supply or because they think they can create a market for products that are not yet common in their area.
What is the existing market?
For example, if there is already a good market for glazed white earthenware (perhaps imported), the potential producer will have to find out if he can produce similar products at competitive prices. If he wants to compete directly, he will have to take up the same clay/glaze/firing system.
Is there a possible new market?
On the other hand, it may be possible to produce a product with the same function, but using a less costly technology. For example, it may be possible to produce glazed red clay earthenware cheaper than the whiteware on the market and thus to create a new market.
Small-scale vs. large-scale
Large-scale ceramics industries are able to produce a large volume at a low profit margin. For this reason, it is difficult for the small producer to compete directly. The small producer has an advantage of flexibility - he can produce a variety of products on demand and thus can supply local customers with special requirements.
For example, the modern tile industry is mostly very large-scale and can supply very cheap tiles of a uniform quality. The small producer can never compete directly with this. However, there is a growing market for specialty tiles, with decorations or relief designs, which the large producers cannot make. Many customers are interested in small quantities of special decorative tiles made according to their own design, even if the price per square foot is higher than mass-produced tiles.
Ceramics substituted for products made from other materials
In some countries, products like glasses for drinking tea may be produced more cheaply in ceramics. Or cement sewage pipes and toilet pans may be replaced by longer-lasting, more hygienic ceramic products.
Household items
Most common tableware items (cups, plates) can be made satisfactorily using either high or low temperature systems. Low temperature ceramics are more easily chipped and broken, but their low cost may be an advantage. High temperature products are stronger, and most hotels and restaurants will prefer them, unless the lower cost of earthenware makes up for the higher rate of breakage.
Electrical insulators
Low tension insulators, fuse holders (kit-kats) etc. do not have to be very strong, so can be made in the low temperature range. High tension insulators have special requirements for porosity and strength, so must necessarily be made at high temperature.
Tiles
Glazed tiles are most commonly produced at low temperatures, which gives them sufficient strength for wall and floor applications.
Cold climates
Ceramic products to be used outdoors in freezing temperatures have special requirements, because of damage that can come from water freezing inside the product and causing it to break. These products are generally made at high temperatures, which make it possible to control water absorption.
After considering the above decisions, the entrepreneur must then make an analysis of investment and production costs. These calculations are not easy to do, as the production of ceramics depends on so many complicated factors. For the new entrepreneur, it is important to start small and as simply as possible.
Low temperature systems usually require a lower initial investment, as kilns and burners will be cheaper. Fuel is usually the highest cost of production, and firing at low temperatures can save production costs. On the other hand, the cost of high temperature glazes is lower, as it is not necessary to use expensive frits.
In preparing a scheme for a new business, it is best to get help from a ceramics expert' who can help to figure out the comparative costs of the various options. Besides the usual overhead costs, it is necessary to consider:
- cost of clay body
- cost of glaze
- labor costs in production
- capital investment for equipment
- fuel costs
- working capital requirements.
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