Rising Prices for Brick are Impacting Construction Costs

Brick has long been a popular building material for homes and commercial buildings due to its durability, aesthetics, and fire resistance. However, recent spikes in the price of brick are causing ripple effects across the construction industry. This increase in brick prices is being driven by a perfect storm of factors impacting costs for brick manufacturers.

For contractors, developers, and homeowners planning building projects, understanding the key reasons behind rising brick prices can help guide decisions and budgeting As the cost of this fundamental construction material goes up, it’s wise to look at strategies for coping with pricier brick

Increased Manufacturing and Transportation Costs

To comprehend the upward price trends for brick, it helps to look at the manufacturing process and what goes into making this product. Brick is formed from clay that’s excavated from quarries and then molded and fired in high-temperature kilns. Making brick relies on abundant energy and labor.

Two major factors are driving up the costs of manufacturing brick:

• Energy prices have surged, increasing kiln firing costs. Brick kilns rely heavily on natural gas. Gas price hikes directly impact the cost of production.

• Labor shortages in the industry are also adding to operational costs. Brickmaking is labor-intensive. With fewer available workers wages have been driven up. This translates into higher per-brick costs.

Furthermore, transporting the heavy brick product long distances adds significantly to manufacturers’ overall expenses. With rising fuel costs affecting freight trucking and shipping industries, the cost of getting brick to market also continues to climb.

High Demand and Tight Supply

In addition to increased costs of production, basic economic factors of supply and demand are fueling brick prices.

• Construction activity rebounded strongly post-pandemic, firing up demand for materials. As new housing development and commercial projects have boomed, demand for brick has outstripped supply.

• Extreme weather events have affected some manufacturing, constraining supply. Regional brick shortages from storm impacts add cost pressure.

• Overseas trade disputes have limited affordable import options that normally help balance supply. Recent tariffs have made imported brick much less cost-competitive.

With buyers hungry for product that is more scarce, brick manufacturers and distributors are raising prices. Some reports indicate the cost of clay brick has jumped as much as 30-50% in recent quarters.

Strategies for Coping With Pricy Brick

For contractors and developers planning building projects, the rising price of this foundational material can seriously impact job cost estimates and margins. Here are some adaptive strategies to consider:

• Look at lower-cost regional brick options that minimize shipping expenses

• Consider alternative siding materials, such as stone, stucco, or fiber cement, depending on aesthetics and performance needs

• Use brick strategically as an accent material or on feature walls, rather than whole building facades

• Plan to use surplus brick from other projects – reuse/recycling avoids purchase costs

• Phase larger projects, only purchasing materials needed for near-term work

• Enter fixed-price supply contracts with brick vendors before major hikes

For homeowners, reassessing how much brick is desirable or necessary for a project can help control impacts from fluctuating prices. If brick is a must, the budget may need reworking to account for its increased cost before construction begins. Understanding the market dynamics behind brick pricing puts purchasers in a better position to adapt.

Watching for When Prices Settle Down

The perfect storm of materials shortages, production obstacles, strong demand, and supply chain kinks may continue to haunt the construction sector. But over time, the expectation is that extraordinary price spikes will ease for commodities like brick.

As housing starts moderate, input costs potentially decline, overseas imports rebound, and manufacturers ramp up capacity, the balance of supply vs. demand could improve. For now, staying flexible and finding cost-saving workarounds for pricier brick is prudent. Taking the long view, the wire price of brick should eventually stabilize – it’s just difficult to predict exactly when.