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Forterra warns again on further price hikes for bricks

Forterra has again warned customers that more price rises are coming their way with another hike due to land at the beginning of next year.

In a trading update on 22nd November 2022, the brickmaker said the latest rise would kick in on 1 January after three rises this year – the latest of which saw prices jump 16.5% at the beginning of last month.

Forterra said trading was currently “robust” with revenue for the ten-month period ended 31 October 2022 up 23% on last time due to higher prices.

 

In a trading update to the City Forterra said: “Group revenue in the period was 23% ahead of the prior year driven by selling price increases implemented on 1 January, 1 April and, most recently, 1 October when we raised the majority of our brick prices by a further 16.5%.

 

“We continue to act decisively to recover ongoing cost inflation and we have notified customers of further necessary price increases effective 1 January 2023.”

The company added it had fixed 60% of its gas costs for next year and will construct its new Desford brick factory within the £95m budget “despite the widespread inflationary pressures.”

 

Stephen Harrison CEO said: “Inventories remain at record low levels and despite the current uncertainties we remain well-placed to mitigate the effects of a softening of demand by substituting imported bricks with domestically manufactured product.”

 

Harrison is stepping down next April and will be replaced by Neil Ash who is currently head of the Building Performance division at Etex.

 

Taken from articles on Housing Today by Dave Rogers 22 November 2022 and constructionenquirer.com by Grant Prior November 2022