Brick shortages are “worst in living memory” as demand surges
People close to the brick industry are reporting stocks of bricks are the “worst in living memory” with the average selling price of bricks soaring by almost 13% to £387 per thousand (according to Michelmersh Brick Holdings) whilst the cost of production of bricks has only marginally increased.
With the construction industry recovery spreading throughout the UK, (being especially strong in the South-East, the North of England and in Scotland), Chairman of Michelmersh Brick Holdings Eric Gadsden commented: “The brick industry is benefiting from rising demand and we have now seen for the first time since 2008.”
This comes as a further boost to the brick industry in the UK following news from Wienerberger last week who announced they would be increasing their brick production capacity by 200 million bricks by the end of 2014.
Wienerberger Managing Director Harald Schwarzmayr commented: “This capacity increase shows our absolute commitment to ensuring that enough new housing is built to meet the requirements of the market. The UK needs a minimum of 200,000 new homes to be built each year, approximately 35,000 more than will be started in 2014. With our capacity increases equating to approximately 25,000 homes each year, Wienerberger is capable of manufacturing the core material for more than 70% of that extra housing requirement needed.”
OBAS has recently seen demand for products related to masonry and bricklaying increase significantly, with sudden surges on products such wall starters and wall ties. OBAS CEO Norman Tenray said: “We’re seeing the impact of the recovery in every area of the construction industry with the requirements of tradesmen, including bricklayers, increasing every day.”