Source : Perth Now news
In Australia’s richest state, builders have been put on notice they now face a brick ration from the state’s only manufacturer.
Western Australia is facing what is arguably its worst housing crisis on record, with manufacturer Midland Brick informing builders that they will be allocated a set number of bricks for the year, which they will need to draw on.
BGC, which has operated Midland Brick since 2021, advised its capacity has reduced from 11 to five operating kilns across the state.
BGC chief executive officer Michael Allen said demand for its clay products remained above their production capacity, that was being driven by WA’s ongoing growth.
“We have advised (customers) that from October 1 we are phasing in a process where clay product delivery time frames and volumes will be defined for each current Midland Brick account which is aligned to our production capacity so that all customers can plan more accurately and efficiently,” Mr Allen said.
“These changes will apply to all Midland Brick clay sales to seek to ensure fair and proportional product distribution while local demand levels remain elevated.”
Treasurer Rita Saffioti said the government had been approached by builders and were engaging with industry bodies to find a solution.
“The builders are actually very shocked,” she said.
The treasurer said they were looking at ways to support more bricks being produced and alternative methods that supported houses with limited or no bricks as part of their construction.
“But bricks continue to be a key part of construction in WA, we need to make sure we’re producing enough bricks to support the market, and in particular, we don’t want to see any further price increases that then impact the construction price,” she said.
“We need to make sure we can do whatever we can in our powers to support more brick manufacturing on housing.”
Master Builders Association Western Australia chief executive officer Matt Moran said they recently met with Midland Brick and the state government to discuss concerns raised by their members about the proposed allocation arrangement.
“We understand the allocations are intended to be a measured response to current high demand and production constraints,” Mr Moran said.
“The figures provided are indicative planning estimates, with actual orders subject to available production and potential changes to production schedules.”
Mr Moran said the industry had continued to manage a range of supply and capacity pressures, including the availability of brick products.
“It is important to recognise that the building and construction industry in Western Australia and across the country has faced significant challenges since the COVID-19 pandemic,” he said.
“Disruptions to the supply of building materials and products, combined with severe labour shortages and a rapid increase in demand, placed considerable pressure on builders, projects and construction time frames.
“These pressures followed a period of relatively low industry activity before the pandemic and were compounded by government stimulus measures that significantly increased demand for new housing.”
