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

Ridge buys rival consultant Jubb

Acquisition will see 100 new staff join Ridge
5 hours ago

Enabling works to start £130m Huyton town centre regen

Phase one includes a new council HQ, hotel and 72 flats
6 hours ago

Grainger build to rent pipeline rises to £1.4bn

Rental specialist buys sites in Sheffield and Cardiff to build 600 rental homes
6 hours ago

Kier wins Cambridgeshire County council estate upkeep

Firm will provide building and M&E services to 106 buildings across the county
5 hours ago

Louvres and solar shading specialist files for administration

Hampshire based ALPS lodges court notice after 25 years in business
6 hours ago

Speedy Hire posts a loss in latest results

Hire giant confident of better performance in next six months
6 hours ago

Esh to lead next phase of Riverside Sunderland regeneration

Infrastructure work will allow further development of Sheepfolds area
5 hours ago

Green light for £1.3bn Edinburgh coastal town revamp

First phase of Granton Waterfront scheme will see Cruden Homes create a new community
23 hours ago

Vistry chief operating officer steps down

Earl Sibley exits as his COO role axed for more direct reporting to CEO
1 day ago

House builder Camstead goes into administration

Work stopped on three current sites
2 days ago

Death of piling legend Roger Bullivant

Industry innovator dies after long illness aged 85
1 day ago

ESS Modular went down owing suppliers £7m

Modular specialist owned by ISG owner Cathexis
1 day ago

Builders back farmers in inheritance tax protest

"A rethink is desperately needed" say National Federation of Builders
1 day ago

Willmott Dixon wins £36m leisure centre upgrade

Work to start on historic Westminster 1930s Grade II listed Seymour Centre
1 day ago

Graham wins £100m Cardiff Crossrail phase 1

Work on route to Cardiff Bay to start before end of next year
2 days ago

Laing O’Rourke appoints new European MD

Peter Lyons to take-up new role in February
3 days ago

Profits dip at Stepnell ahead of demerger

Turnover and secured workloads up ahead of restructure
3 days ago

HS2 green bridge deck takes shape

100m-wide wildlife bridge to carry hedgerows and country lane over HS2
2 days ago

1,000-home Wolverhampton city centre scheme in for planning

ECF and council advance City Centre West build to rent scheme
3 days ago

Sisk clinches £54m North London council HQ revamp

Haringey's iconic Grade II listed civic centre to be brought back into use
3 days ago

Ofgem approves £2.5bn Eastern Green Link 1

Work to start next Spring on cable project from Scotland to the north of England
3 days ago

Anglian Water hunts for £1bn delivery partner

Programme delivery partner wil integrate with client team over 15-year plan
3 days ago

Hadden collapse costs supply chain £6.7m

"Highly unlikely" subcontractors will receive anything for their unpaid invoices
3 days ago

Management buyout at M&E specialist

£25m turnover Kimpton in second MBO in its 60-year history
3 days ago

BAM finalises £71m deal to replace first major RAAC school

Work to start on new St Leonards Catholic School in Durham
3 days ago

Scaffolder hit by two tonne weight at nuclear plant

Court hands out £633,000 in fines after Dungeness B decommissioning incident
3 days ago

Go-ahead for 860,000 sq ft East London medical campus

Whitechapel Road scheme of six new and repurposed buildings
3 days ago

Site labour rates hit record high as cost inflation returns

Industry's biggest payroll firm says rates rose nearly 5% last month in London
6 days ago

Morris & Spottiswood acquires part of ISG fit-out division

ISG Cathedral acquisition saves 111 jobs and expands presence across England
7 days ago

New work drives Q3 construction output uplift

Third quarter activity up 0.8% despite slowdown in September
6 days ago

Contractor services