VALENCIA – The shortage of bricks will pose a significant threat to the construction sector in Valencia in the coming months. The scarcity of raw materials, combined with the high energy costs, is a problem that is spreading fast.
This problem also threatens to paralyse several construction-related sectors. This has been indicated by the Valencian Federation of Construction Employers (FEVEC). “The brick factories do not produce continuously due to a lack of demand. When their supplies run out and gas prices continue to go through the roof, this will lead to some to stop production,” the employers explain to Las Provincias. The company, therefore, warns of an “uncertain autumn” for the sector.
Now that the price of brick has tripled, the demand has decreased and there is enough material. However, the drop can be problematic. Most manufacturers are trying to reduce their stocks. If demand is not reduced, there could be supply problems, FEVEC said.
New construction in particular shows signs of weakening due to the increase in manufacturing costs by more than 30%. In addition, there is the inability of the initiators to adjust the signed contracts to current market prices.
Warned of the disappearance of the brick industry
The sector itself even warns of “the disappearance of the brick industry” in the Valencia region. The director of a ceramics factory says that the electricity bill has increased from €2,500 per month to €6,000.
According to the same director, the new building trends reduced the demand for brick. Moreover, because the labour costs are very high, facing bricks are no longer used. Added to this are the high gas prices that the factories still have to pass on in part to the customer.
Costs from 30,000 to 250,000 per month
The manager of another factory in Las Provincias says that the situation is becoming untenable because costs have risen from €30,000 to €250,000 per month. In his case, the company saw the need to suspend operations on June 15, resume it for a few weeks in August, and then close again. Before this situation, it was produced 365 days a year while this factory probably won’t even reach six months of activity this year.