Brick maker battles “long trough” in construction

Grant Prior 2 weeks ago
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Michelmersh saw brick dispatches drop another 9% in the first half of this year with volumes more than 25% below the recent 2022 peak.

The sales slump has forced the manufacturer to juggle factory output to meet decreased demand including the complete closure of its Charnwood site in Leicestershire with the loss of 30 jobs.

Things are unlikely to improve anytime soon following a “long trough” in construction activity.

Chief Executive Officer Ryan Mahoney said: “The lack of positive momentum in our construction markets continues to test our strategy and the resilience of our business model and people.

“In our principal regions, our key measure of the demand dynamics is the volume of brick despatches, and these are still over 25% below the most recent high of 2022 with the 9% reduction in the first half dragging back the modest progress made in 2025.

“This is a long trough in construction activity and our response, given the lengthy duration of the downturn, has been to be flexible and adaptable with our business operations.

“Assessing the timing of despatches against our order book remains very challenging given the compounding nature of regulatory costs and shallow consumer confidence for our customers.

“The active risk management of our cost base has supported our ability to focus on consistent pricing for our customers, and we will focus on our partnerships and collaboration with our customers as we move into the second half and prioritise forward demand.

“Pointing to a moment where we expect activity levels in our sector to increase with sustained positive momentum is very challenging and in response we are set on our approach of adapting our manufacturing output and responding swiftly to changing market dynamics.”

Latest results for the six months to June 30 2026 show pre-tax profits down to £2.8m from £2.9m as revenue fell to £32.4m from £35.8m.

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