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WA builders are facing another supply headache, with Midland Brick set to introduce brick allocations as demand continues to outstrip production capacity.
Midland Brick, operated by BGC since 2021, will begin phasing in a new allocation process from October 1. BGC said its production capacity has dropped from 11 operating kilns across WA to five.
Under the new system, each Midland Brick account will have defined clay product delivery time frames and volumes based on available production capacity. BGC chief executive Michael Allen said demand for its clay products remains above production capacity, driven by WA’s continued growth.
The changes will apply across Midland Brick’s clay sales, with BGC aiming to ensure fair and proportional distribution while demand remains elevated.
Master Builders Association WA chief executive Matt Moran said the organisation had met with Midland Brick and the WA Government after concerns were raised by builders. He said the allocations were intended as a measured response to high demand and production constraints, with actual orders still subject to available production and changes to production schedules.
WA Treasurer Rita Saffioti said builders were shocked by the move. The government is looking at ways to support greater brick production, as well as construction methods that use fewer or no bricks.
Saffioti also said the government wanted to avoid further brick price increases flowing through to construction costs.
Original reporting by Emma Kirk, NewsWire, via news.com.au.
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