Stockpiles that date back to 2009 are starting to reduce as brick sales increase on the back of a recovery in house-building.
Michelmersh Brick saw its unit sales rise 10% in the first half of the year after a flat 2012 and the traditionally strong summer season has started well.
“There are now clear signs that the significant industry de-stocking which started in 2009 has come to an end,” Michelmersh said. “Whilst this has still not translated into price recovery, there are early signs that these stock levels are now under some pressure across the industry.
“Translation of these dynamics and increased housing activity into price recovery will be the determinant whether sales price growth exceeds cost inflation.”
Recent orders for Michelmersh include Lend Lease's new Elephant & Castle regeneration scheme, Liverpool University student accommodation, Ercall Wood Technology College in Telford and the Seaburn and Roker re-development.
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