Brick shortage prompts $4 million sweetener to get factory reopened

• The Western Australian government is providing $3 million to help Austral Bricks reopen its Cardup facility to address a critical shortage of building materials.
• The initiative aims to increase local brick production by 15% to keep pace with a 50% surge in detached home construction starts.
• While industry leaders welcome the boost to supply and efforts to reduce costs, they note that the construction sector continues to face significant challenges regarding labor availability.

Western Australian taxpayers will provide up to $4 million to revive a dormant brickmaking facility as the state’s construction industry continues to struggle with severe labor and material shortages. The initiative aims to restore competition and supply after the closure of Austral’s Cardup brickworks in mid-2023 left Midland Brick as the state’s sole remaining manufacturer.

The supply crunch has intensified as the demand for new housing skyrockets. According to government figures, the number of detached home starts has surged by more than 50 percent since last year, leaving the single existing supplier unable to keep pace with the building boom. To address the shortfall, the state government will grant $3 million to Austral to reopen its facility, a move expected to increase local brick production by 15 percent.

Treasurer Rita Saffioti defended the use of public funds, stating that the government must intervene in critical sectors to ensure essential projects move forward. She emphasized that maintaining the momentum of home construction is vital, noting that the state cannot allow a shortage of basic materials to stall housing availability or drive up costs further.

The funding announcement, held at a construction site in the Perth suburb of Sinagra, was met with approval from industry executives, though many noted that more work remains. Dale Alcock, managing director of ABN Group, described the move as a “large help” but cautioned that the industry still faces significant hurdles in meeting total demand.

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