Asphalt and mortar sales fall to 10-year low

MPA has announced the results of its quarterly membership survey. investigation Primary sales volume details for the first quarter (Q1) of 2024 aggregateasphalt, green mix concrete And mortar.

Despite a slight increase in primary elections; aggregate Revenue was 1.1% sequentially, but overall trends across all monitored markets remained subdued. On top of an already difficult economic situation, storms and record rainfall affected his construction productivity in early 2024.

MPA said this would likely result in an extended project schedule rather than a significant catch-up to spring demand.

The cumulative effect of these trends has meant that mortar sales volumes have fallen to their lowest volumes since 2014 (excluding the coronavirus-impacted spring of 2020), and demand has fallen to its most recent peak. This is a 27.5% decrease from the previous third quarter of 2022. This is thought to be due to a decline in housing demand. And there is a knock-on effect on new home construction after the October 2022 budget, which caused mortgage interest rates to rise.

ready mixed concrete Revenues have also plummeted to historic lows as residential construction slows, compounded by the long-term weakness in demand for new commercial office and retail projects that has been subdued since 2017. did.

Nationwide project delays and cancellations highway A squeeze on road planning and road funding for local governments has caused asphalt sales to fall to levels last recorded in 2013, more than a decade ago (again, excluding the impact of the coronavirus).

primary demand aggregate The MPA has been supported by bulk fill requirements for major infrastructure projects, particularly HS2 and beyond, but the lack of significant new infrastructure projects outside of the country’s only major rail scheme remains a concern, the MPA said. Ta.

Aurélie Delanoy, MPA’s economic director, said: investigation The results highlight the continuing challenges facing the UK mineral products sector. Slower economic growth, high inflation, high interest rates and construction project delays have collectively led to weak demand in all major construction sectors. Although there are signs that construction activity is starting to stabilize, persistent concerns about higher costs, uncertainty surrounding future construction plans, and increased contractor breakdowns will prevent a strong recovery in mineral product sales until at least 2025. is expected to be hindered.

“As the general election approaches, the MPA urges all political parties to prioritize a robust return to growth plan that is anchored by the timely delivery of an infrastructure pipeline. Streamlining the housing planning process is critical. But the government also needs to tackle the significant cost pressures affecting infrastructure projects and local spending, such as repairing local roads, improving transport links and providing the housing, schools, hospitals and energy infrastructure that the UK economy needs. Investment is important for short-term and long-term growth, as well as for advancing climate change and goals that address climate change.”

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