Brick shortages indicate construction supply chain instability, says sector boss

Stabilisation in the construction industry supply chain is needed if the sector is to regain momentum, a North East house builder.

The managing director of Southdale, Paul Moore, says a return to buoyancy in the housebuilding sector is causing shortages of materials and skilled workers.

The firm, which has a Darlington base, experienced a “more positive” year in 2013, but Paul suggests supply issues could dampen the sector’s come-back.

He said: “2013 has been a much more positive year for us and in the wider construction sector. However, there are some unintended consequences of the positivity in the market which need addressing, because of the financial uncertainty in programming they are creating for contractors.

“Throughout the supply chain, shortages brought about by the steady return to health of the construction sector are resulting in demand outstripping supply in many areas. An example of this is in materials, such as bricks. When the downturn hit, kilns closed, but they have not been re-opened. This means the number of bricks being produced has not been increased to meet current demand, so costs have risen dramatically.

“Without some form of action to stabilise the situation it is impossible for people building affordable homes to price a job with any certainty, and there is no going back because our contract costs are fixed, unlike with those building private homes.”

On skills he added: “A focus also needs to be placed on skills because when construction took a major blow in the recession people migrated from the industry, retraining into other sectors or even moving abroad looking for work.

“The industry lost a lot of capacity and experience, and those people are not coming back. We need more training to fill that gap and it will be a slow process, but without that push on skills businesses within the sector will not be able to achieve their potential.

“The growth we are seeing is welcome, but consideration of the issues which surround it need to be carefully considered.”

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