The government of Western Australia has committed to providing up to $4 million to Austral Bricks in order to reopen its manufacturing facility in the region. The Sydney-based firm had closed its WA operations in mid-2023, leaving Midland Brick as the sole remaining brick manufacturer, which has struggled to meet the increasing demand.
Deputy Premier Rita Saffioti emphasized that this funding initiative illustrates the government’s proactive approach in supporting essential industries. With the construction sector facing ongoing challenges related to labor and raw materials, the state will utilize taxpayer funds to revive a second brick production facility.
Following the closure of Austral’s Cardup plant, the government reported a significant surge in the construction of detached homes, which has risen by over 50 percent. This upsurge has intensified the pressure on Midland Brick, the only active brick supplier in the state, to keep pace with demand.
In response to this shortfall, the state government plans to allocate $3 million to Austral, with the expectation that this will boost brick production by up to 15 percent. Treasurer Saffioti stated, “We are ensuring that we do everything possible to maintain the momentum of home construction and alleviate the rising costs associated with brick supply.”
When questioned about the necessity of state funding given the high demand, Saffioti remarked that the government is committed to supporting critical sectors to facilitate progress. “It is straightforward. We cannot allow a situation where we know we need to build more homes, yet lack the necessary bricks,” she explained.
Executives from the construction industry present at the funding announcement, held at a construction site in Sinagra, expressed unanimous support for the initiative. Dale Alcock, managing director of ABN Group, one of the largest homebuilders in the state, acknowledged that while the funding is beneficial, it is still insufficient. He highlighted that his company currently has around 100 sites awaiting brick supplies and urged the government to explore additional measures to enhance supply.
Alcock pointed out that Midland Brick’s allocation system indicates a shortage of bricks, stating, “At present, the industry is more focused on availability than cost. While cost is important, the lack of bricks halts production altogether.”
Matt Moran, CEO of Master Builders WA, stressed the importance of expanding the workforce to secure the future of the industry. “We must invest in trades and promote apprenticeship opportunities to attract more individuals into the sector,” he noted.
The government has also proposed an additional $500,000 incentive for Austral if it can resume operations by March, along with another $500,000 if it manages to produce a minimum of 17 million bricks within the first year.
However, Michael McGowan, CEO of the Housing Industry Association WA, cautioned homeowners that this initiative would not provide an immediate solution to the delays currently affecting the industry, encouraging patience over the next year. “It will take some time before these bricks are available, and builders are working diligently to complete the homes already in progress,” he said.
Saffioti mentioned that discussions with Austral are ongoing, including potential requirements for the company to maintain its operations for a specified duration.
McGowan expressed confidence in the future demand for bricks, asserting that the home building industry is expected to remain highly active over the next three to four years, and he encouraged a long-term perspective on this investment.
