Brick and concrete block manufacturer Forterra is planning price increases for 2025 that include passing on the Employers’ National Insurance raise.
The raise Employers’ National Insurance, which was announced by the Chancellor of the Exchequer in her first budget at the end of last month, has faced backlash from business ever-since.
In its latest trading update, Forterra states that it “anticipate[s] modest levels of cost inflation heading into 2025, with the recently announced increase in Employers’ National Insurance contributions adding to this.
“We have secured around 80% of our energy requirements for 2025 and also have good levels of coverage for 2026 and 2027.
“In response to these expected increases in our cost base we have announced selling price increases for 2025 and we are currently in discussions with our customers.
“Our ability to deliver these increases will be influenced by both market conditions and the pricing strategies adopted by our competitors.”
The update describes trading conditions as “challenging” during the four months to 31 October 2024. It reports sales as being 5% below last year, but estimates full year profits to be on track to hit £50 million.
It also expects to "benefit not only from Government policies that aim to deliver a significant increase in housing supply, but also from improving affordability as the benefits of reducing interest rates are felt."
A recent £140 million strategic investment programme, which provides the business with 15% more brick manufacturing capacity and improved efficiency relative to the last turn of the cycle, is deemed to leave the company "ideally positioned to benefit from an improving market outlook".