Brick shortages worsen as contractor order cancellations fall

Aaron Morby 3 years ago
Share

The industry-wide brick supply crisis is being intensified by a sharp fall in order cancellation rates from contractors.

Brick shortages are worsening as supply continues to outstrip production
Brick shortages are worsening as supply continues to outstrip production

Supply problems are now so tight that brickwork contractors warn that they now face quoted lead times into next year for some products.

One brickwork firm told the Enquirer: “There is an unprecedented struggle to get supplies. Very few products from any of the main four companies are available until next year.

“Even existing orders that have been on with the ‘required schedule ‘ all year are not being fully met.”

According to another source chest-high courses of brickwork across a new housing development had to be broken out to be replaced by a different range after stocks of the particular facing brick dried up.

Brick producer Wienerberger this week wrote to its UK customers warning that suddenly changing market conditions had led to delivery failures.

It blamed a sharp fall in typical order cancellations rates, usually notified because of planning rejection or projects being postponed or canceled.

The letter said: “At the start of 2021 and for many years, the average order schedule cancellation rate we have operated to has been in excess of 24%.

“This has allowed us, combined with higher levels of inventory, to operate in a flexible manner ensuring we achieve supply expectations.

“Due to market pressures, and materials shortages, the last quarter and month to date position in relation to our percentage of cancellations has dropped to just above 6% on average.

“The significant cancellation change, combined with short term raw material supply issues, has resulted in our recent increase in notifcations of schedule delivery failures, which are currently at an unacceptable level.”

The brick producer said it was now acting to address the issue by providing customers with visibility of all orders by factory and brick type by weekly volume available between now and the year-end. Importantly the numbers that will be provided by brick type have been mapped versus production planning.”

It added: “We are unable at this stage to commit additional volumes for UK product above that which is set out in your schedule confirmation information.”

According to latest Government figures for June, brick inventories have plunged to new 20-year low as deliveries continue exceed production.

Expressed in weeks of deliveries, the latest level represents 8 weeks delivery down from a recent peak of nearly 14 weeks in April 2020.

The latest monthly fall in total stocks to 290m was driven by a 11% month on month increase in deliveries, while near-capacity production slipped by nearly 6% compared with March, due to summer maintenance.

Latest news

Osborne staff start looking for new jobs

"Open to Work" flags appear on LinkedIn profiles
11 hours ago

Plan rejected for 42-storey tower above historic building

Councillor describes as ludicrous plan to build 300 flats above Georgian mansion
12 hours ago

Ventilation deal could hike product prices for contractors

Watchdogs at CMA launch probe after duct firm acquires rival
12 hours ago

Tide gets go-ahead for London 412 student flats scheme

Volumetric developer secures planning for West Ealing project
12 hours ago

Green light for £75m Friar Gate Goods Yard in Derby

Construction set to start this summer on revamp of historic buildings
12 hours ago

Robertson to deliver £45m Newcastle NHS Trust works

Capital works will be focused on Freeman Hospital and the Royal Victoria Infirmary sites
11 hours ago

Winners named for £2bn Healthy Homes framework

CHIC reveals line-up of over 40 firms for net zero and building safety works
12 hours ago

Plan lodged for tallest skyscraper outside London

Developer Salboy submits plan for 76-storey Manchester resi tower
1 day ago

Curo starts £170m race for new homes framework

Bath housing association plans to build up to 300 homes a year
1 day ago

Gove approves major Cambridge North mixed-use scheme

Government backs controversial scheme of 424 flats and 600,000 sq ft of tech and lab space
1 day ago

Pontins holiday park to house Sizewell C builders

Suffolk holiday park to house 500 nuclear construction workers
1 day ago

Adrian Bloor targets 1,000 homes-a-year

Expansion plans after major investment into challenger house building business HarperCrewe
1 day ago

Housing firm fined £528,000 after cable strike

Maintenance workers given no information on underground services
2 days ago

Berkeley subbies face six weeks without payments

Introduction of new finance software means payment hiatus for suppliers
2 days ago

Pagabo reveals 56 winners of latest £1.6bn retrofit deal

Decarbonisation Solutions Framework launched: Full list of winners
2 days ago

Go-ahead for £100m Liverpool Love Lane flats

500-flat scheme will be built across four blocks in Vauxhall area of city
2 days ago

Unions win HS2 site access battle at Old Oak Common job

Skanska, Costain, Strabag JV now the last denying unions access to HS2 sites
2 days ago

Contractors jack 1,100t viaduct into place in 13-hour operation

158m-long composite deck structure jacked into place 10-hours ahead of schedule
2 days ago

Wates wins former Daily Mail printworks transformation

British Land advances major cultural venue at London’s Canada Water
3 days ago

Mace poaches Ramboll chief to be Head of Engineering

Martin Feakes will develop civil and structural engineering offer at Mace
3 days ago

Subcontractors form alliance for major civils jobs

Trio of specialists join forces to collaborate and offer Tier 1 contractors a turnkey solution
3 days ago

Fear of supply chain failures boosting collaboration

Procurement survey also reveals project bank account use is rising
3 days ago

Wates sets up business to target 160,000 mouldy social homes

Healthy Homes service will be offered to social landlords across England
4 days ago

Higgins wins £75m Peabody Passive House job

Latest phase of Deptford Landings to start construction
3 days ago

Contractors and unions agree Sizewell C working deal

New deal offers improved sick pay and parental leave over Hinkley Point deal
4 days ago

Competition chiefs win legal fight for more construction raids

High Court rules CMA officials can raid a domestic property as part of investigation
4 days ago

More Osborne companies file administration notices

Three more divisions lodge notices with court
5 days ago

McLaren wins multi-storey urban logistics contract

South London win with British Land is pioneering urban logistics hub
4 days ago

Big social housing schemes at risk over funding uncertainty

Housing associations warn uncertainty over public funding beyond 2026 is curbing new schemes
5 days ago

Kier wins Worcestershire town centre renewal

Firm secures Bromsgrove commercial and cultural hub project
4 days ago

Contractor services