Brick And Tile Stocks At Their Lowest For Three Years
House builders are expressing their concern for the lack of availability of bricks and roof tiles.
At the beginning of this year is seemed that the brick stocks did recover slightly, but are at their lowest level since the beginning of 2015. The average demand is currently only two months’ supply. Stock of concrete roof tiles are also at their lowest and they represent only two weeks supply.
Current headlines about brick stock seemed to confuse statistics, however, after recent investigation these referred to over production by Lego. The toy company stated that they had “too much stock” and were selling the extra stock at a cheaper price. There are parallels with the makers of larger bricks who need to change the way they do production to match demand, and it has been shown in the past, the capacity for increased production exists but takes time to come on stream.
January 2018’s data for bricks reveals the shut down in the industry over the Christmas period but prior to that, deliveries had exceeded production every month since May 2016.
Production of bricks has risen gradually since the middle of 2017 to peak at 175 million in November 2017; however, deliveries have also increased over the period to 184 million.
Concrete roof tile stocks at the end of the 4th quarter in 2017 represented 2,492 thousand m2 of roof area covered. Deliveries have surpassed production in seven out of the previous 10 quarters.