New figures from the Mineral Products Association (MPA) show a modest overall improvement in the sales of construction aggregates and asphalt in Great Britain for the second quarter of 2024.

However, the MPA’s latest quarterly volumes survey, a useful barometer for all construction activity, also shows that growth has not yet returned to each individual mineral products market, with concrete sales still in the doldrums – a sign of ongoing challenges facing the sector.

Asphalt volumes increased by 5.3% to 5.1 million tonnes in 2024 Q2, crushed rock sales rose by 4% and mortar sales grew by 2.8% compared to the first three months of the year.

These seasonally adjusted figures reflect a stabilisation in key construction materials markets following a notably poor first quarter, which saw sales drop to their lowest levels in over a decade. Infrastructure projects such as the A30 widening in Cornwall and A417 ‘Missing Link’ scheme in Gloucestershire have played a role in this improvement.

The construction industry supply chain landscape remains fragile, according to the MPA. For example, ready-mixed concrete sales – ubiquitous across all types of construction – dropped by a further 1.1% to 3 million cubic metres in 2024 Q2, the lowest ready-mixed concrete sales volume in Britain since the 1960s. Sand & gravel sales fell sharply by 10% in the second quarter.

These declines underscore the persisting weakness in Britain’s construction sector, particularly new housing and delivery of infrastructure projects. Slower than expected interest rate cuts by the Bank of England and high mortgage rates continue to dampen housebuilding activity, whilst key areas of infrastructure, such as roads, remain beset by high costs and planning delays.

Annual comparisons further underscore the mixed performance across different mineral products. While asphalt and crushed rock sales saw slight annual increases of 0.2% and 1.5% respectively in 2024 Q2 compared to the same quarter in 2023, ready-mixed concrete and sand & gravel suffered significant declines, down 17.4% and 17.0% respectively. Mortar sales are also down by 20.3% year-on-year, despite a minor quarterly recovery.

MPA members have emphasised the importance of ongoing major infrastructure projects such as HS2 and Hinkley Point C in stabilising the market for mineral products. However, the lack of new flagship projects coupled with financial and planning challenges, continues to hinder a more robust recovery. The MPA's latest market forecast suggests that while 2024 will remain challenging, a more substantial recovery is not anticipated until 2025, starting from a low base.

The MPA survey exposes the challenges faced by producers of heavy-side building materials. Whilst welcoming the return of positive figures in some markets, Aurelie Delannoy, MPA Director of Economic Affairs, cautions that any potential recovery is tentative and subject to ongoing economic and structural challenges.

“Investment uncertainty is hurting our sector and the broader construction supply chain. The latest cancellation of the Stonehenge tunnel and Arundel bypass schemes, following the previous cancellation of the northern leg of HS2, further erodes business confidence. Likewise, new Government reviews on transport and the hospital building programme add to this uncertainty, turning any attempt to forecasting and business planning into parody. This worsens the already weak outlook for the industry.

“The Chancellor must urgently address these issues by providing clear policies to reduce uncertainty and spur growth in line with the Government’s ambitions. This includes improving delivery on critical infrastructure investment and upgrades, and ensuring that the planning system supports the domestic supply of minerals and mineral products, which is essential for the wider construction and economic recovery.”

Figure 1. Mineral products sales volumes in Great Britain, 2014Q1-2024Q2

Table 1. MPA sales volumes in GB: change on the previous period (seasonally adjusted)

* Ready-mixed concrete sales volumes at GB level cover sales from both fixed and site (mobile) plants.

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About the Mineral Products Association:

The Mineral Products Association (MPA) is the trade association for the aggregates, asphalt, cement, concrete, dimension stone, lime, mortar and industrial sand industries. With affiliation of the British Association of Reinforcement (BAR), the British Calcium Carbonate Federation, the Cement Admixtures Association (CAA), CONSTRUCT, Eurobitume, MPA Northern Ireland, MPA Scotland and the UK Quality Ash Association (UKQAA), it has a growing membership of 520 companies and is the sectoral voice for mineral products. MPA membership is made up of the vast majority of independent SME quarrying companies throughout the UK, as well as the 9 major international and global companies. It covers 100% of UK cement and lime production, 90% of GB aggregates production, 95% of asphalt and over 70% of ready-mixed concrete and precast concrete production. In 2021, the industry supplied £22 billion worth of materials and services to the Economy. It is also the largest supplier to the construction industry, which had annual output valued at £178 billion. Industry production represents the largest materials flow in the UK economy and is also one of the largest manufacturing sectors.

For media enquiries, contact Robert McIlveen at: Robert.McIlveen@mineralproducts.org