In the latest fiscal period, UK concrete specialists faced declining revenues, largely avoiding significant losses, but now confront labour and decarbonisation challenges.
- The sector’s combined revenue saw a minimal decrease of 0.6%, with mixed performances among the top firms.
- Careys maintained its leading position, benefitting from an extended accounting period, which significantly increased its revenue.
- Labour shortages are a pressing issue post-Brexit, prompting firms like Byrne Bros and Careys to enhance recruitment and training.
- Concrete’s carbon impact drives innovation, with firms working on substantial reductions in embodied carbon.
In recent financial reports, many UK concrete specialists reported declining revenues. However, significant financial turbulence was largely avoided. Now, the industry faces the dual challenges of labour shortages and a push towards decarbonisation. The overall decline in sector revenue was a slight 0.6%, demonstrating resilience amidst these obstacles.
Among the top firms, revenue trends varied. While half of the companies experienced revenue growth, the remainder reported downturns. PJ Carey topped the rankings, with its long accounting period contributing to a significant revenue boost compared to its prior results. Despite this, profit margins for the leading companies were more adversely impacted, with a drop in aggregate pre-tax profits from £69.3m to £60.2m, and median margins falling from 4.3% to 3.7%.
Brexit has exacerbated labour shortages within the industry, decreasing the availability of European workers and increasing competition. As Byrne Bros’ Alastair Smyth noted, the migration of workers back to Eastern Europe has intensified these challenges. In response, Byrne Bros is significantly investing in recruitment, onboarding more apprentices than before and exploring new strategies to attract and retain talent. Similarly, Careys is fostering educational collaborations, such as with Milton Keynes College, to bolster workforce skills.
Investment in low-carbon technologies is becoming critical for the concrete sector, as firms address the environmental impact of their operations. Careys and Byrne Bros are actively pursuing carbon reduction strategies. Careys’ focus on transparency in carbon emissions across product life cycles underscores the broader industry shift. Moreover, the sector is on the brink of innovation, with potential reductions in embodied carbon by up to 60%, signalling transformative change.
Amidst these challenges, the sector continues to see demand growth, particularly in energy and infrastructure. Increased activity has been noted in the development of ‘gigafactories’ and large-scale projects such as HS2, marking evolving market dynamics. As infrastructure work picks up pace, the industry is poised for a potentially prosperous decade, according to Smyth, who anticipates a ‘golden 10 years’ ahead.
The UK concrete industry demonstrates resilience and adaptability in the face of evolving market dynamics and environmental challenges.
