Ibstock to raise brick prices by more than 10%

Grant Prior 4 years ago
Share

Brick giant Ibstock has written to customers warning them prices are set to rise by more than 10%.

The Enquirer has seen the letter which went out earlier this week giving firms notice that prices across the Ibstock product range will increase by 10.47% from November.

The letter stated: “The construction sector is experiencing significant supply issues due to the strength of the demand for all building products. We are facing very considerable cost increases. The demand for energy has continued to outstrip supply and fuel prices have naturally moved well ahead of expectations.

“The high demand has triggered exceptional price increases on haulage and with materials and haulage in short supply, we have no option but to accept these cost increases.

“Our costs for employment and recruitment are increasing significantly as are the prices for all raw materials

“We have been taking these costs for the majority of this year and continue to absorb as many of these costs as possible, however, we are unable to absorb them fully and regrettably, we need to implement a price increase during this year.

“Given the volatility of supply, we cannot rule out further increases going forward, however, we will endeavor to give good notice on any additional price increases that may be necessary.”

Contractors are now braced for similar rises from other major brick and block manufacturers.

One brickwork specialist said: “Price increases and availability issues are the worst I’ve known in 35 years.”

Contractors will now be hoping that the brick market does not go the same way as steel where a succession of price hikes have rocked the industry.

Ibstock posted its latest results earlier this week showing a pre-tax profit of £39m from a turnover of £202m for the six months to June 30 2021.

Ibstock declined to comment on the letter.

 

Latest news

Cardo in talks to buy Breyer roofing arm

More than 100 jobs could be saved at Breyer Roofing
2 hours ago

Quartet win £750m Wales & Western railway deal

Network Rail confirms partners for Reactive and Minor Works framework
2 hours ago

Plans in for £350m London Bridge life sciences hub

Snowsfields Quarter will consist of three buildings containing labs
3 hours ago

Surging labour costs push tender price forecast up

Pick-up in tender prices despite weak growth
3 hours ago

Permasteelisa wins cladding deal on Multiplex city tower

Facade specialist wins work on Fenchurch Street ‘hanging gardens’ tower
2 hours ago

Wates wins fit-out for Manchester First Street Hub

Smartspace arm secures another Government hub deal
23 hours ago

Peel Ports reveals winners for £750m framework

18 firms win places on deal: Full list
24 hours ago

Big trade names dropped in M Group rebrand

Acquisitive group formed from Morrison Utility services in 2016
21 hours ago

Breyer Group files administration notice

Staff hope rival firm could buy assets and save jobs
1 day ago

Former Severfield director takes helm at Embrace Steel

New CEO Martin Kelly aims to step up expansion of steelwork contractor
1 day ago

£302m upgrade funding awarded to FE colleges – list

Cash shared out between England’s 179 college groups
1 day ago

FK Facades thrives but construction arm hit by ISG row

Dispute with failed contractor costs specialist £5.5m
1 day ago

Galliford Try gets go-ahead for Milton Keynes PRS tower

33-storey tower needs gateway 2 approval before work can start
2 days ago

Small house builders get £150m funding for green homes

Developers will have to meet-up to ten new criteria to benefit from interest rate discounts
1 day ago

Lendlease Construction renamed Bovis

US private equity firm completes £35m purchase of UK contracting business and rebrands
2 days ago

Breyer Group battles for survival as rivals circle

Housing maintenance firm fights three winding up petitions in a month
2 days ago

Careys facing £2.4m claim by developer over demolition cartel

Giant Hong Kong developer claims it was overcharged on Lots Road Power Station job
2 days ago

Multiplex profit drops a third as revenue rises to £780m

Spate of new orders sets contractor up for three years of work
2 days ago

Galliford Try and Breheny land latest Sizewell C road deals

More infrastructure deals for new nuclear power station
3 days ago

Worker trapped in collapsed septic tank pit

Contractor and director fined after worker suffers multiple fractures
2 days ago

Homes England buys stalled Broad Marsh site

Demolition to finally be completed as developer hunt begins
3 days ago

Vistry go-ahead for 353 homes at Rochester Riverside

Work to start on next phase of Kent town regeneration at end of this year
3 days ago

M&E firm J S Wright collapsed owing £19m

Trade creditors hit for £11.4m by employee-owned Midlands firm
3 days ago

Right to work checks to be extended to self-employed

Government plans crackdown on illegal working and rogue employers
3 days ago

Midlands developer turns to London with £1bn resi schemes trio

SevenCapital plans 1,000 flats in Kensington, Islington and the Isle of Dogs projects
3 days ago

Deck falls off huge scissor lift at Winvic site

Two men seriously injured as platform plunges to the ground
6 days ago

Weston targets Build to Rent with new division

Weston Partnerships signs first deals with asset managers and councils
3 days ago

Bouygues seals deal for £119m Cardiff college campus

Construction to start in June on two new buildings
6 days ago

£140m cash injection to speed-up flood defence schemes

Funding part of £2.65bn investment over the next two years
3 days ago

Bid race starts for £15bn schools framework refresh

DfE throws framework open to more contractors
6 days ago

Contractor services