Recent data highlights a mixed performance in the UK construction materials sector for Q2 2024.
- Sales of construction aggregates and asphalt saw modest improvements, while concrete remained sluggish.
- Asphalt and crushed rock sales experienced growth of 5.3% and 4% respectively this quarter.
- The UK construction supply chain is still fragile, with significant declines in ready-mixed concrete and sand & gravel sales.
- Major infrastructure projects are crucial to market stability, yet new flagship initiatives are lacking.
Recent data from the Mineral Products Association (MPA) reveals a mixed performance in sales of construction materials in Great Britain during the second quarter of 2024. While there is a modest overall improvement for some materials, others continue to struggle. For instance, construction aggregates and asphalt have seen a slight recovery, yet concrete sales remain notably downbeat.
Figures indicate that asphalt volumes rose by 5.3% to a total of 5.1 million tonnes during Q2 2024. In conjunction, crushed rock sales increased by 4%, and mortar sales witnessed a 2.8% rise when compared to the first quarter of the year. This improvement is attributed in part to infrastructure projects such as the A30 widening in Cornwall and the A417 ‘missing link’ scheme in Gloucestershire, which have contributed positively to the construction activities.
Despite these gains, the construction industry supply chain is described as fragile by the MPA. Ready-mixed concrete sales fell by 1.1% to 3 million cubic metres in the second quarter — levels not seen since the 1960s. Additionally, sand and gravel sales took a significant hit, declining by 10%. These decreases illuminate ongoing challenges within the UK’s construction sector, particularly the sluggish pace in new housing developments and infrastructure project deliveries.
The broader market reflects this variability; annual comparisons show that while asphalt and crushed rock have seen minute annual increases of 0.2% and 1.5% respectively, ready-mixed concrete and sand & gravel have decreased sharply by 17.4% and 17.0%. Mortar, despite quarterly recovery, is down 20.3% year-on-year. This underscores the uneven performance across the board, with MPA members emphasizing the need for ongoing major infrastructure projects to bring stability.
Furthermore, there is an air of uncertainty looming over the market. The recent cancellation of key infrastructure projects such as the Stonehenge tunnel and the Arundel bypass has further eroded business confidence. Uncertainty surrounding government reviews on transport and the hospital building programme compounds these issues, necessitating prompt and clear governmental policy to ignite growth and ensure a stable supply of essential construction materials.
The material market faces a challenging path to recovery, with 2025 anticipated as the year for more substantial improvements.
