focussed on the effect a prohibition would have on other companies in the supply chain , such as fabricators and other downstream users .
Based on available information , most companies that supply engineered stone also supply other products , such as natural stone and / or porcelain . A small number of companies appear to only supply engineered stone .
The multinational manufacturers have a global market and existing supply routes to other countries . They would be able to pivot sales of engineered stone to other markets if a prohibition is implemented . As above , many also supply other products and it is feasible that they may move their Australian operations to focus on these products .
In all cases , the operations of these businesses – warehouses , logistical operations , machinery for moving and storing heavy stone slabs etc . – can be repurposed for substitute products ( natural stone , laminate etc ). The demand for bench tops , cladding , flooring is not expected to decrease as alternatives to engineered stone are available . There may be costs associated with pivoting to alternative products and disposing of old stock , however , they are not able to be quantified due to a lack of information . A submission from one of the larger businesses noted that should work with high silica engineered stone be banned , a 12-month transitional period would allow manufacturers and distributors to sell current stock holdings and fulfill existing orders .
There may be costs associated with closure of a small number of businesses that import , manufacture or distribute engineered stone . However , due to a lack of information these costs are unable to be quantified .
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Costs to retailers : considered out of scope for this analysis . There may be additional labour and other costs to kitchen and bathroom retailers , architects and designers associated with required changes to their designs , production , pricing and / or marketing for alternative products . There may also be additional costs associated with removing and replacing existing engineered stone displays .
Change in the size of the market : The proposed prohibition options are not expected to have any impacts on underlying demand for kitchen and bathroom benchtops , splashbacks and other products that engineered stone is often used for . Alternative product options exist for consumers .
4.7.2 Qualitative costs to workers
The proposed options are not expected to have significant longer-term impacts on employment levels or wages of engineered stone workers . This is because underlying demand for kitchen and bathroom benchtops and other surfaces is not expected to change regardless of any prohibition on engineered stone . Given significant workforce shortages across the construction sector ( Judd , 2023 ), it is expected that displaced workers would find alternative employment in similar or related trades .
4.7.3 Qualitative costs to consumers 4.7.3.1 Potential for increased purchasing prices for new engineered stone products
Engineered stone currently accounts for 55 % of the kitchen benchtop market ( by volume ). 10 A prohibition on use of all engineered stone may drive a substantial shift in demand in the market to alternative products ( e . g . natural stone , laminate or wood ). It is feasible that this shift may lead to short-term price increases in these alternate products while the market adapts to changes in demand ( substitution effect ). The size of price increases will depend on the market power of producers relative to consumers . In turn ,
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Caesarstone submission
DECISION REGULATION IMPACT STATEMENT Prohibition on the use of engineered stone Page 45 of 107