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At a time when the
issue of escalating energy costs are so widely documented
and residential developers have been hit hard by stringent
planning regulations, brick manufacturers, including Sedgley-based
Baggeridge Brick, are finding themselves operating in somewhat
unchartered territory.
With demand for brick declining month on month since spring
2004, national brick sales have now fallen to their lowest
level since records began. Largely attributed to the change
in government policy with regards to house building, the imposition
of PPG3 planning guidelines have set extremely demanding targets
for developers in terms of housing density per acre with densities
rising to the level of 40 units per acre. This has been achieved
by the construction of apartments which now account for around
46 per cent of new dwellings constructed and clearly there
are fewer bricks needed to construct these types of properties
than, for example, a detached property. So, while housing
starts are at a healthy level, the volume of bricks required
has fallen sharply.
As
if having to manage the sharp reduction in demand wasn’t
challenging enough for brick manufacturers, the issue has
been compounded further by the simultaneous rise in energy
prices over the same period, increasing sharply since Autumn
2005 when gas prices in particular more than quadrupled. Commenting
on the changes Baggeridge Brick’s sales director Mark
Morris comments: “Whilst most manufacturers did foresee
a cooling of the market in the second half of 2004/05, I believe
it’s fair to say that no one forecast it would fall
to the levels we experienced and whilst industry expected
and indeed budgeted for an increase in energy prices, no one
in their wildest dreams ever imagined a day when gas prices
would reach the level of £2 per therm.”
However, Mark believes there are tentative signs that the
market is in the early stages of recovery and is cautiously
optimistic that demand will begin to improve as we move through
2006. He continues: “While the housing market won’t
go back to building detached properties with separate garages
which accounted for a considerable percentage of the housing
mix pre-2003, there is growing evidence that the current mix
of high volume one and two bedroom apartments aren’t
meeting the housing need.
“Factors such as demographic and social changes and
even immigration mean three, four and five bedroom properties
are needed more now than ever before and I believe we’ll
see a greater number of three storey dwellings with more bedrooms
over the coming years. It should, in theory, increase demand
for brick and hopefully the type we produce at Baggeridge.”
They say that necessity is the mother of all invention and
these challenges have certainly forced brick manufacturers
to refine their processes, products and systems. Mark believes
that Baggeridge will emerge even fitter and healthier than
ever before and the company has been working hard to develop
four brand new brick products, designed specifically for the
house building and commercial sectors and following consultation
with key customers, the company has launched a range of sector-specific
products.
Designed to suit and complement regional diversities and trends,
the new Warm Golden Buff lends itself well for new build properties
in the South, while the Thornhill Red Multi, with its orange
and black tones, has been manufactured with the Midlands and
the North of England in mind. Realising that developers will
have to continue embracing the concept of building homes on
previously used land, two brick ranges have also been produced
for brownfield sites. The Smoked Antique Red Multi with its
subtle tones and the Autumn Fern Blend, yellow, red and orange
in appearance are both ‘weathered’ in appearance
and give a softer, more traditional feel.
Mark comments: “Listening closely to key customers has
helped us recognise that they, and the house building sector
as a whole, are crying out for new products that can ideally
‘fit’ specific residential areas across the entire
country and the new range tick all the right boxes.”
So the situation is far from bleak and rather than focusing
on the challenges brick manufacturers have had to confront
over the past couple of years, Mark is looking forward to
a brighter future. He continues: “I honestly do believe
the brick industry will grow and flourish. It’s true
to say that there are a number of alternate products being
put forward to rival brick, but it has too many benefits to
ignore – it’s low maintenance, environmentally
friendly and fits in well with the very ethos of modern methods
of construction.
“You only have to wander around Brindley Place to realise
the beauty of brick – this is a fantastic example of
how the right brick in the right setting can create a wonderful
environment and I firmly believe it will continue to be the
product of choice amongst architects and specifiers for many
more years to come.”
17th March
2006
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