Bricklayer Australia material supply

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>While the national construction sector is struggling with constrained supply of <a href="https://www.theurbandeveloper.com/articles/timber-shortage-construction-materials">timber</a> and <a href="https://www.theurbandeveloper.com/articles/construction-industry-steel-supply-shortage">steel</a>, there’s still plenty of bricks in the supply chain. </p><p>The problem is there are not enough bricklayers to lay them.</p><p>In fact, the sector is facing a dearth of labourers of all types—and the issue will only be exacerbated by the two-week <a href="https://www.google.com/url?q=https://www.theurbandeveloper.com/articles/victorian-riots-construction-cfmeu-vaccination&amp;sa=D&amp;source=editors&amp;ust=1632802909292000&amp;usg=AOvVaw3TjM-yqU1FwvMn1NZuQbFb">halt to construction</a> in Victoria announced last week.</p><p>Housing Industry Association chief economist Tim Reardon says there have been periodic building material shortages this year, with <a href="https://www.theurbandeveloper.com/articles/timber-shortage-construction-materials">timber rather than bricks</a> the big issue.</p><p>“That’s taken time to resolve and hopefully we’ll see an easing of timber shortages towards the end of this year,” he says. </p><p>“But bricks are made almost exclusively in Australia. We do import some bricks from overseas, which tend to be high-end, artistic-style products, and shortages are fairly common, even in a normal year. </p><p>“Constraints on international shipping are causing disruptions to trade, impacting all imported building products.</p><p>“So any perceived shortage of bricks reflects more the impact of lockdowns on freight and trade, rather than a structural problem with supply of bricks. </p><p>“The construction sector is booming, but when I say that to brick suppliers they ask, ‘when’s it coming? We’ve increased our capacity and we’re making bricks in anticipation of rising demand, but we can’t see this in our operations’. So there’s ample capacity.</p><p>“From that point onwards, the boom in home construction will slow. By the end of 2022, the number of homes under construction will be back to normal.”</p><p>Brett Lavaring from The MJH Group, which operates brands across Australia including McDonald Jones Homes, Mojo Homes, Brighton Homes, Weeks Homes and Wilson Homes, confirms there is ample supply of bricks but “we are seeing some challenges securing a labour force to lay bricks across Queensland, NSW, South Australia and Tasmania.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/3f75a3a3-b194-4872-8b51-6a01450d63b3.jpg" width="1600"/></picture><div><span style="align-content:center;opacity:0.8">▲ Bricks are stockpiling and manufacturers are slowing production as supply outpaces demand.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Reardon attributes the boom to a number of factors, including the federal government’s HomeBuilder grant, which has ended but projects from it are still working their way through the construction sector; as well as low interest rates. </p><p>He expects buoyant conditions to continue.</p><p>“The pandemic is prompting households to make two decisions,” Reardon says. </p><p>“They are seeking lower-density housing so they have more living areas, more space to work from home, additional bedrooms for kids to study at home and larger back yards. There is a shift from high-density housing towards lower-density living. </p><p>“They are also saving like they never have before. So there’s a large amount of pent-up demand for expenditure and when the economy opens, people will continue to invest in either renovations or new home construction.”</p><p>Brickworks’ managing director Lindsay Partridge agrees timber and steel shortages, rather than brick supply, is restricting the building sector. The business recently announced record underlying net profit after tax of $285 million, up a stunning 95 per cent on the previous year. </p><p>“Lockdowns in NSW and Victoria mean you&#x27;re not getting the full number of trades onto site because workers cannot move from state to state, so that’s slowed things down. </p><p>“This is a real problem in Western Australia where the number of new houses being built has doubled in the past year, and to some extent in South Australia.”</p><p>Partridge says he was selling a million bricks a day to customers in NSW before the lockdown began on July 21.</p><p>“Suddenly, we were only selling 200,000 bricks a day, so we were stockpiling 800,000 bricks a day. </p><p>“We could only do that for three weeks because our yards were full, so we had to take plants offline. </p><p>“We’re now supplying about 85 per cent of our usual daily sales and we’ve been able to bring some of that plant back online. So it’s a constant balancing act.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Labour of love</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>State borders and lockdowns aside, the national border closure is creating a labour shortage in construction, which, Partridge says, will have flow-on effects to housing demand. </p><p>“There are no skilled workers coming into the country, which eventually will mean we won’t need to build as many houses.”</p><p>Recent building approval figures show this effect has already started. The total number of dwelling approvals fell 8.6 per cent in July, while the number of approvals for private sector houses fell by 5.8 per cent. </p><p>“While the speed at which new homes are being built peaked in April, there are more homes currently under construction than we’ve ever had before, by a large margin,” Reardon says. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/c1c36e92-294f-4d3b-861e-d5a1c5360185.jpg" width="1600"/></picture><div><span style="align-content:center;opacity:0.8">▲ New dwelling approvals declined for a fourth consecutive month as the surge in detached housing, propelled by the HomeBuilder stimulus, continues to drop out of the system.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“And that&#x27;s going to continue until the end of this year. At that point, the number of homes that are reaching completion will be higher than the number of homes that are commencing construction.”</p><p>The head of advocacy and policy at the Recruitment, Consulting and Staffing Association Australia and New Zealand, Brooke Lord, says while lockdowns have created a labour shortage in construction, long-term, systemic problems are a contributing factor.</p><p>“Apprenticeship numbers have dwindled during the past six years, which is putting enormous pressure on talent in the construction sector.”</p><p>There were 266,565 apprentices and trainees completing their training in Australia as at June 30, down 3.9 per cent on June 2019 figures, according to the National Centre for Vocational Education Research.</p><p>Lord says enhanced Centrelink payments are another factor. While JobSeeker has ended, when it was available some people on lower salaries made a choice to accept payments through enhanced social welfare mechanisms rather than work.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>No new normal </strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>While NSW and Victoria have mapped out some steps for re-opening post-lockdown, it’s not yet clear when construction activity will return to a more normal footing. Partridge isn’t expecting the economy to snap back when lockdowns end.</p><p>“We’re going to have rolling shutdowns and lockdowns for the next six months. Supply constraints of imported materials will also continue because shipping is in chaos. It will take us six to 12 months to emerge from this and pent-up demand is going to take a year or two to work through.”</p><p>Lord says labour shortages will continue to be challenging for the next two years. </p><p>“The labour market is under enormous stress. This won’t change until border restrictions ease, the national border opens and the flow of workers, holiday visa makers and overseas students come back.”</p><p>It may be a long two years for the construction sector. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>You are currently experiencing </strong><strong><em>The Urban Developer</em></strong><strong> Plus (TUD+), our premium membership for property professionals. </strong><a href="https://www.theurbandeveloper.com/membership-plans"><u><strong>Click here</strong></u><strong> to learn more</strong></a><strong>.</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4fb872c4-2507-449c-af93-4c928c2ed849.png" width="800"/></picture><div></div></div></div></div></div></div></div>

While steel and timber shortages are causing the construction industry real problems, there’s no drama with getting bricks...

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Amazon has inked a 20-year lease with ASX-listed groups Goodman and Brickworks to open Australia’s first robotic fulfilment centre at the joint venture’s Oakdale West industrial estate in Western Sydney. </p><p>The fully-automated, four-level warehouse is a sizeable 200,000sq m—about the size of Taronga Park Zoo—and will house up to 11 million items distributed by 2000-odd robots.</p><p>Goodman and Brickworks received masterplan approval for the 89-hectare industrial estate in <a href="https://theurbandeveloper.com/articles/goodman-wins-approval-on-3bn-oakdale-west-">September</a>, finalising development plans for the multi-level Amazon warehouse in April. </p><p>Amazon is the second tenant the joint venture has signed at Oakdale West, after nabbing Coles for a state-of-the-art warehouse last year. Coles’ tenancy is almost entirely automated with shuttle and conveyor belt technology and represents a near-$1 billion investment in automation by the supermarket chain.  </p><p>Related: <a href="https://theurbandeveloper.com/articles/goodman-deal-sees-amazon-expand-into-queensland">Goodman Deal Sees Amazon Expand Into Queensland</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><iframe sandbox="allow-forms allow-scripts allow-pointer-lock allow-same-origin allow-top-navigation allow-presentation" class="embed-responsive-item" allowfullscreen="" frameBorder="0" style="max-width:574px;width:-webkit-fill-available" height="300px" src="https://www.youtube.com/embed/Nb9G4KKhotU&amp;feature=youtu.be"></iframe></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Amazon runs 175 fulfilment centres worldwide, with 50 of them automated by robotic technology. The robots pick up heavier items, carrying pods of inventory and transporting pallets for the efficient, same-day delivery Amazon promises its customers. </p><p>Amazon director of operations Craig Fuller said that the facility will more than double the group’s Australian footprint. </p><p>Amazon’s investment in the distribution facility, which sits on a 150,000sq m site with 1,111 car parks, will total more than $500 million, an Amazon spokesperson confirmed. </p><p>Amazon has also <a href="https://theurbandeveloper.com/articles/goodman-deal-sees-amazon-expand-into-queensland">expanded</a> into Queensland, signing on to a 40,000sq m Goodman Group site in Brisbane in June. Goodman now has two Sydney warehouses and one Brisbane facility operated by Amazon in its portfolio.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/ff041857-a105-401c-b163-75f6bcbf8e90.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Amazon will invest $500 million in its new Western Sydney distribution centre (pictured). </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The <a href="https://theurbandeveloper.com/articles/charter-hall-industrial-market-activity">increase</a> in e-commerce post-coronavirus has boosted demand in the industrial sector, Brickworks managing director Lindsay Partridge told investors at a trading update in June.</p><p>“Accelerated trends we’ve seen [in] online shopping is playing right into the hands of our property trust, so I think we’ll see increased demand in the area,” Partridge said. </p><p>Brickworks sold the estate in Horsley Park into the industrial vehicle established by a 50-50 joint venture with Goodman Group in 2016. </p><p>Partridge said that the group has received approval for subdivisions to the east of Oakdale West, which it plans to sell into the trust. </p><p>The brick manufacturer has a $125 million brick plant under way at Horsley Park and says the remaining land provides a development pipeline of more than five years.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/748b7a28-b325-4757-9e3d-353342e93e7c.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Amazon’s Kiva robot. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Premier Gladys Berejiklian said that Amazon’s distribution centre in Kemps Creek will create more than 1,500 jobs. </p><p>“This important commitment by one of the world’s leading multinationals highlights Western Sydney’s growing stature as a strong investment destination,” Berejiklian said. </p><p>CBRE brokered the deal for Amazon and Goodman. The high-tech facility is slated to open in the second half of 2021. </p></div></div></div></div></div>

Amazon has inked a 20-year lease with ASX-listed groups Goodman and Brickworks to open Australia’s first robotic fulfilment centre ...

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Perth-based technology company Fastbrick Robotics have entered into a partnership with ASX-listed Brickworks who will retain exclusive rights to manufacture and supply customised blocks for use by the homebuilding </strong><a href="https://theurbandeveloper.com/articles/australias-robotic-bricklayer-completes-its-first-house-in-three-days"><strong>Hadrian X robot</strong></a><strong>.</strong></p><p>The proposed joint venture would be 50-50 for a period of three years under a shareholder agreement which is still to be negotiated between the two parties, with Brickworks granted the exclusive right to supply blocks to Fastbrick&#x27;s operations in Australia.</p><p>Brickworks, which owns the Bristile tile brands, manufactures bricks under the Austral banner through a number of plants around Australia.</p><p>The two companies have agreed to collaborate on designing, manufacturing and testing concrete masonry unit blocks used by the Hadrian X robot to create structural walls for residential buildings.</p><p>Related: <a href="https://theurbandeveloper.com/articles/watch-australias-bricklaying-robot-build-three-bedroom-house">Watch Australia&#x27;s Bricklaying Robot Build Three-Bedroom House</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/92ed2e84-06a2-4e89-a286-3a431cba74e8.jpg" width="1000"/></picture><div><span style="align-content:left;opacity:0.8">The Hadrian X claims to be able to complete the brickwork on a home within three days, laying 1000-plus standard bricks per hour.</span><span style="float:right;opacity:0.8">Image: Fastbrick Robotics Limited</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The announcement comes two months after scrapping a proposed partnership with global leader Caterpillar, pivoting to partner with Australia’s largest brick maker.</p><p>The joint venture will commence with a pilot program in Western Australia initially focused on residential construction.</p><p>The pilot program is expected to generate the first operating revenues for Fastbricks, likely to be structured on a “per square metre of wall built” basis.</p><p>Fastbrick Robotics chief executive Mike Pivac said the partnership would allow the company to further validate the Hadrian X and unique business model currently being rolled out worldwide.</p><p>“Our relationship with Brickworks will significantly accelerate the global commercialisation of our technology through the support they can provide as Australia&#x27;s leading incumbent in the construction materials space, and the industry knowledge they have accumulated over 110 years,” Fastbrick Robotics chief executive Mike Pivac said.</p><p>Late last year, Fastbrick announced its Hadrian X, the commercial version of its robot, <a href="https://theurbandeveloper.com/articles/watch-australias-bricklaying-robot-build-three-bedroom-house">built the three-bedroom home in less than three days</a> described as a “world-first achievement”.</p><p>Fastbrick also struck a manufacturing deal with Europe’s Wienerberger Group, currently the world’s largest producer of bricks.</p></div></div></div></div></div>

Perth-based technology company Fastbrick Robotics have entered into a partnership with Australia's largest brick maker ASX-listed Brickworks.

Brickworks is planning to up its capacity to 130 million bricks a year at its Horsley Park facility west of Sydney following a stellar year for construction supply orders.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Brickworks is planning to up increase capacity to 130 million bricks annually after a stellar year for construction supply orders.</p><p></p><p>The building material manufacturer has lodged a State Significant Development modification for its 780 Wallgrove Road, Horsley Park plant west of Sydney.</p><p></p><p>The plan would increase capacity by 62.5 per cent, from 80 million bricks a year, by upgrading the twin-tower scrubber, hardstand area and extending the stormwater detention basin.</p><p></p><p>The plans also included the creation of a new entry, parking spaces and gatehouse to improve the site’s efficiency, environmental performance, employment opportunities and reduce workplace risks.</p><p></p><p>This is an expansion on last year’s development consent, granted by the NSW planning minister, to demolish the plant two facility, install a new kiln and extend the production building. </p><p></p><p>In the 2021 financial year Brickworks <a href="https://www.theurbandeveloper.com/articles/property-buoys-brickworks-bottom-line">recorded an underlying profit of $285 million</a>, up 95 per cent on the previous year. </p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/f85a1805-122a-4848-b5d1-21db594c8296.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ All land within the Western Sydney Parkland is unzoned, the Horsley Park Brickworks site was first issued approval from the Blacktown Shire Council in 1960.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The massive increase was driven by demand for the company’s <a href="https://www.theurbandeveloper.com/articles/amazon-plans-australias-first-robot-warehouse">industrial land and the value of its portfolio</a>.</p><p></p><p>At the end of June Brickwork’s leased property trust assets stood at $2 billion, generating $89 million in gross annual rent.</p><p></p><p>Unlike many other ASX200 companies, Brickworks increased its dividends during the pandemic due to its position within the market.</p><p></p><p>This result was achieved despite disruptions in its US portfolio and lockdowns in Australia costing  between $3 million and $5 million.</p><p></p><p>The company’s building products also had significantly higher earnings as “changing consumer preferences towards lower density living” reflected positively on its portfolio.</p><p></p><p>Across the construction industry, supply of timber and steel has been disrupted, however,<a href="https://www.theurbandeveloper.com/articles/bricks-construction-materials-supply-labour-shortages"> bricks were largely unaffected</a>.</p><p></p><p>In fact, <a href="https://www.theurbandeveloper.com/articles/bricklayers-top-tradies-shortage-list">bricklayers were the most in-demand trade</a> in the country due in part to the large volume of HomeBuilder projects under way.</p></div></div></div></div></div>

Brickworks is planning to up its capacity to 130 million bricks a year at its Horsley Park facility west of Sydney following a stellar year...

A strong appetite for building materials and industrial properties is laying the foundations for Brickworks’ rapid share price growth with its Goodman Group joint venture.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>A strong appetite for building materials and industrial properties has laid the foundations for Brickworks’ rapid share price growth. </p><p>A positive trading update drove the ASX-listed company’s stock price up more than 11 per cent over the day.</p><p>Revaluations in Brickworks’ joint-venture property trust saw its property earnings double in the past year to between $240 million and $260 million, creating record results in underlying earnings before interest and tax.</p><p>The property trust with Goodman Group created in 2006 is worth $777 million and includes the <a href="https://www.theurbandeveloper.com/articles/amazon-plans-australias-first-robot-warehouse">construction </a>of an Amazon facility at Oakdale West, NSW to be completed in the next six months.</p><p>It also has a larger Coles distribution warehouse nearby, which is expected to be complete within 18 months.</p><p>Building material sales in Australia and North America also contributed to the share price rise, although Covid-19 and product availability made profit forecasts less predictable. </p><p>In the past 20 years Brickworks has expanded with the acquisition of Bristile in Australia and Glen-Gery, the fourth-largest brick manufacturing company in the United States, as well as its move into masonry, timber and precast manufacturing.</p><p>Its building products portfolio is worth $692 million in Australia and $208 million in North America. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/7d5eee4b-ef4a-4dca-8f0f-7bf5497be202.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ This residential project in Rosebery, Sydney will use more than a million Brickworks-supplied San Selmo bricks. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Brickworks managing director Lindsay Partridge said land prices and the completion of the two distribution facilities should bolster future results. </p><p>“Since the end of the first half, there has been a number of significant industrial property transactions in western Sydney,” Partridge said. </p><p>“The pricing of these transactions has reinforced the strong investor appetite for prime industrial property assets.</p><p>“We have seen strong demand and sustained growth in the value of our property trust over a number of years.</p><p>“The Covid-19 pandemic has only fuelled this growth, by accelerating industry trends towards online shopping and increasing the importance of well-located distribution hubs and sophisticated supply chain solutions.”</p><p>However, the forecast for building products was less predictable but was expected to exceed the previous year which incurred “significant write-back costs” due to the pandemic.</p><p>“In Australia, the significant uptick in housing approvals is now translating to increased building activity, with our sales particularly strong in Queensland and Western Australia over recent months,” Partridge said. </p><p>“That said, the availability of some materials, such as timber for house trusses, is an issue in some areas, with the resultant delays likely to flatten and extend the duration of the existing pipeline of work.”</p><p>Partridge said building activity was also ramping up in the United States as the vaccination program advanced.</p></div></div></div></div></div>

A strong appetite for building materials and industrial properties is laying the foundations for Brickworks’ rapid share price growth...

BRICKWORKS