Ibstock has restarted operations at several of its brick factories as the UK construction sector shows early signs of recovery. The move is aimed at positioning the Leicestershire-based firm to meet rising demand, particularly in housing development, which remains well below government targets.
Current UK brick production stands at around 2.2 billion units annually, far short of the estimated 7.8 billion produced in 1970. That shortfall is critical, as the UK has not hit its 300,000-home annual construction goal in over five decades, with just over 100,000 homes built last year.
Efforts to scale up supply are complicated by long lead times for new manufacturing infrastructure; constructing a new brick plant typically takes at least 18 months. Meanwhile, several manufacturers, including L&G and Tophat, have exited the market in response to weakened demand.
Compounding the issue are rising production costs, which have driven up brick prices over the past five years. Manufacturers like Ibstock have struggled to pass these increases on to developers, particularly those operating in the low-margin affordable housing segment.
Despite a 15% drop in share price amid cost concerns, Ibstock is positioning itself for long-term gains as market conditions stabilise. Its renewed production push signals cautious optimism across the building materials sector.
