A shortage of concrete block is causing headaches for builders amid soaring demand from major projects.

A combination of constrained supply chains for materials, the limitations of concrete plants on island, and a shortage of storage space mean local suppliers such as SAL and Bierman’s have been unable to ramp up production sufficiently to meet demand.

Projects such as the Luscar Place office building and the landing station for Google’s Nuvem subsea cable, as well as a host of other ongoing hotel and residential building projects, have fuelled the need for concrete.

The shortages come as construction costs continue to rise, driven not only by material prices, but also the cost of fuel, trucking and shipping.

Alex DeCouto, president of Greymane Construction, said the block shortage had been very impactful on construction projects since the spring.

Since local quarries stopped producing several years ago, he said the island had become increasingly reliant of imports of aggregate, as the primary input for concrete block production on the island.

“They can only make so many blocks in a day, and do not have unlimited storage,” Mr DeCouto said. “If a busy period coincides with a gap in aggregate supply, they will just run out.

“To make matters more complicated, when supplies dwindle down, there is a run on the plant and firms will line up in the middle of the night to be the first firms rationed to receive block that morning.”

Suppliers had been restricting the amount of block that individual firms could take in a day, he added. When some larger firms negotiated an agreement to take all of a supplier’s product for a period, it caused widespread frustration among other contractors.

Some have taken extreme measures.

“There has been stockpiling, and I am aware of instances of thefts from job sites,” Mr DeCouto said.

“I am aware that there are currently active attempts to import manufactured block from overseas, which has helped but can be an expensive alternative, running up the cost per block by about 30 per cent in some cases. But that can be less expensive than having crews sit idle.”

Bierman’s Concrete Products, which has been in the concrete business for 80 years, is working to increase production.

“This shortage has affected the entire industry, and we understand the frustration it has caused for customers whose projects depend on a reliable supply,” Emily Biermann, the firm’s chief executive officer, said.

“Restoring production to full capacity is our highest priority. We are actively undertaking equipment upgrades and maintenance, strengthening our production processes, and securing the raw materials needed to increase output.

“These efforts are well under way, and we remain committed to improving product availability as quickly and safely as possible.”

She added that recent supply challenges had resulted from a combination of unprecedented demand, equipment upgrades, and raw material constraints.

One potential solution to the shortage is at Bierman’s own quarry at Lolly’s Well in Smith’s Parish, she suggested.

“One of the greatest opportunities to strengthen Bermuda's construction supply chain is expanding access to locally sourced aggregate through additional quarrying capacity,” Ms Biermann said.

“Working collaboratively with the Government to obtain the necessary quarry permits would help create a more sustainable local supply of essential materials, reduce reliance on limited sources, and improve our ability to meet the island's growing construction needs.

“We believe this is a positive, long-term solution that would benefit not only our company, but the construction industry and Bermuda as a whole.”

Ms Biermann’s late father Mike Bierman, who died last year, had approached the Department of Planning several times over the years for permission to lower the quarry in Smith’s by 80 feet to give access to one million cubic yards of provable reserves of limestone aggregate, but was denied each time. The six-acre quarry sits on a flat plateau, surrounded by 50-foot cliffs, and is 110 feet above sea level.

Creating a new concrete block plant on island could cost in the region of $10 million, said Dylan Robinson, general manager at Bierman’s. He said the machinery that produces block at Bierman’s is more than 40 years old and is being upgraded to increase its productive capacity.

Mr DeCouto did not expect to see investors tempted to create a new plant. “A new block plant and quarry operation is a seven-figure investment and more than that in aggregate supply that you need to line up, and you need a large quarry for storage and operations,” he said.

“All for the opportunity to make $5 a block and hope for the best. It is not something that entrepreneurs are racing to fill demand on.

“Of course, all of this is doing nothing good to the cost of construction overall.”

Another source in the construction industry, who did not want to be named, said a co-operative approach could help to address supply and cost issues to the benefit of the island.

With the support of the Government, a dedicated port and storage facility for the industry could give the island bargaining power to negotiate better rates with suppliers and shippers, the source said, creating a more stable supply of aggregate and potentially other construction materials.

The Royal Gazette also reached out to SAL for comment.