The construction mineral market in Great Britain shows early signs of stabilisation, according to a recent survey.
- Sales of ready-mixed concrete, sand & gravel, and mortar have modestly increased following previous downturns.
- Growth was noted in several regions, with the Southeast and West Midlands leading the recovery.
- Despite these improvements, overall sales volumes remain significantly below historic levels.
- Future prospects depend on housing recovery, infrastructure projects, and government funding.
The latest report from the Mineral Products Association indicates an initial stabilisation in the construction mineral market, as reported in the third quarter of 2024. The survey reveals a modest growth in sales from a previously low baseline, which began a downturn in mid-2022. A marginal 0.9% increase in ready-mixed concrete sales was observed, alongside a 3.7% rise in sand & gravel, and a 2.2% improvement in mortar sales.
Regionally, the Southeast and West Midlands were the standout performers, experiencing the strongest gains in ready-mixed concrete sales among the 11 regions surveyed. This suggests that while demand is stabilising, sales volumes have not yet returned to the levels seen in previous years.
Year-to-date figures show that sales volumes continue to trail behind those of 2023. Ready-mixed concrete sales are down by 14.1%, sand & gravel by 10.5%, and mortar by a concerning 20.1% compared to the previous year. The decline in house-building, which uses a significant amount of these materials, partly explains this trend as reduced housing activity directly impacts material sales.
The report also highlights a downturn in asphalt and crushed rock sales, attributed to budgetary constraints affecting local authority road maintenance and delays or cancellations of national road-building schemes. Nevertheless, there are growth areas, particularly major infrastructure initiatives like HS2 and Hinkley Point C, which are providing a necessary boost in material demand.
Economic affairs director Aurelie Delannoy of the MPA commented on these findings, stating, “The latest data suggests that construction mineral markets may have reached a low point, with early signs of recovery in some regions and markets. Yet, the demand environment remains challenging, with prospects hinging on a recovery in housing, progress on infrastructure delivery, and sufficient funding for local road maintenance.” However, recent government budget announcements have tempered optimism, as increased taxes add complexity for producers at a time when a steady supply of materials is crucial for economic progress and decarbonisation efforts.
Continued observation of trends and government actions will be paramount as the sector navigates this tentative recovery phase.
