Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Saturday, 5 April 2025

UK construction output levels continue to fall

Wednesday, 5 February 2025

MPA: ‘Road ahead remains uncertain and peppered with potholes’

The Mineral Products Association – the trade body representing Aggregate Industries et al. – has recorded an uptick in sales of construction materials in the final months of 2024, but notes
Despite these encouraging signals, the MPA data also underscores the severity of the construction slowdown over the past two years and the major challenges facing the £22 billion mineral products industry. For example, annual mortar sales fell by 15% in 2024, dropping below 2 million tonnes - some 28% lower than their 2022 peak of 2.7 million tonnes. 

Similarly, ready-mixed concrete, ubiquitous to all types of construction projects, faced a 10.8% annual decline in 2024, reaching its lowest level in over 60 years. Primary aggregates sales declined by 2.6%, with sand and gravel particularly impacted due to weak demand from the struggling ready-mixed concrete market, where it is mostly used. 

Thursday, 5 December 2024

AI joint venture blames economic slowdown for quarry restoration delay

Wight Building Materials is a joint venture between Eurovia and Aggregate Industries. 

Last week, onthewight reported: 
Restoration work at an Isle of Wight quarry with tens of thousands of tonnes of fill material will continue for two more years following a council decision. 
In justifying its decision for Wight Building Materials’ Hale Manor Quarry, an officer wrote: 
The submitted information states that the downturn in the economy caused by rising interest rates and the cost of living over 2022/23 has caused the slowing rate of restoration for the quarry. Therefore, the restoration scheme cannot be completed by the 2024 deadline. 
Of course, it wouldn’t be the first time that a deadline linked to Aggregate Industries has come and gone. 

In the past, the word deadline meant something: 
a line drawn within or around a prison that a prisoner passes at the risk of being shot 
a line that does not move 
To Aggregate Industries et al., a deadline seems to mean nothing more than a guideline

But we mustn’t be too harsh. Aggregate Industries and other mineral companies are clearly feeling the economic pain – as was made perfectly clear to us earlier in the year, when a representative from Aggregate Industries explained why the company intends to mothball Straitgate Farm immediately following implementation of the planning permission.

Friday, 2 August 2024

Sales of sand & gravel down 10% in second quarter, report MPA

Saturday, 13 July 2024

‘Time to get Britain building responsibly’, says Aggregate Industries

A change of government has prompted all manner of press releases from the building industry this week. 

Both the Mineral Products Association, the trade body representing Aggregate Industries et al., and Aggregate Industries itself have responded to plans set out by the new Chancellor, Rachel Reeves, to overhaul the planning system and boost housebuilding. 

MPA Director of Public Affairs, Robert McIlveen, said
The Chancellor has wasted no time to get going, and we warmly welcome her decisions on housing and onshore wind, as well as hiring more planners. We look forward to such decisive action in other areas… 

We will be writing to key ministers in the coming days, stressing that planning reform for housing is just the first step, and that a similar approach of unblocking the planning system needs to be taken for mineral extraction, processing and freight. This is fundamental to growth, given the sector represents the largest material flow in the UK economy – over 1 million tonnes of raw materials and products every day. Mineral products make up a major part of the supply chain for housing and infrastructure, but our members face prohibitive constraints in the current planning and permitting system.
Lee Sleight, who this year became Aggregate Industries' latest Managing Director of Aggregate, said
As a leading sustainable building materials supplier within the UK, we are fully on board with this initiative and ready to support key areas such as house building, infrastructure and onshore wind. 

So far in 2024, the UK market has seen a concerning slowdown in both infrastructure projects and house building, with 24% less construction starts in the first quarter of 2024 compared with the previous year, and construction output in the housing sector 19% below 2019 levels in February this year. 

etc etc 

Without a doubt, the urgent steps which the Chancellor has laid out to kick-start economic growth are necessary and achievable, and we are poised ready for the challenge. However, taking house building as an example, the 1.5 million homes projected over the next five years will require vast amounts of materials.

A conservative estimate of just the concrete required for these homes could be 37.5 million cubic metres. For perspective, this equates to more than nine times the capacity of Wembley Stadium and underscores the importance of recycled materials. 

This is why it’s crucial we create a new blueprint for the Great British built environment. Aggregate Industries have ambitious plans to help achieve net zero and are adopting a circular economy approach across everything they do. 

The construction industry must responsibly embrace the Chancellor’s national mission for growth but can only achieve this by building in a circular and wholly sustainable way. This goes far beyond just minimizing waste. Effectively, we need to build new cities from the ‘urban quarry’ of our old stock, thereby conserving the precious resources of our island nation.
And, of course, no one would disagree with Mr Sleight’s apparent passion for the use of recycled materials and conserving the precious resources of our island nation – but this is the MD of the division of Aggregate Industries that has been fighting tooth and nail over the last 15 years to dig the life out of a relatively insignificant greenfield site in East Devon for precious unsustainable primary un-recycled materials, and to process them 23 miles away – a wholly unsustainable way

Aggregate Industries: Say one thing and do another.

Monday, 12 February 2024

MPA: ‘Housing-led construction slump hits mineral product sales hard’

Monday, 29 January 2024

Double blow for construction industry

According to the Construction Products Association (CPA) Winter Forecasts, published today, construction output is forecast to fall by 2.1% this year... 

Six months ago the CPA was forecasting 0.7% growth for UK construction output in 2024. Three months ago, it changed this to a 0.3% contraction. That it is now forecasting a 2.1% contraction represents a significant further deterioration in sentiment.

 

Thursday, 25 January 2024

Friday, 3 November 2023

Sand & gravel sales slump

The third quarter saw notable declines in the sales of ready-mixed concrete and sand & gravel, with drops of 15.0% and 12.2%, respectively. For ready-mixed concrete, the magnitude of the decline is comparable to 2009Q1, when macroeconomic and construction conditions were severely impacted by the global financial crisis.

Saturday, 28 October 2023

Thursday, 21 September 2023

UK construction orders slump

Sunday, 13 August 2023

Sand & gravel sales in decline again

Sales of sand and gravel in Britain have fallen 7.3% over the last 12 months, according to the MPA

The trade body representing Aggregate Industries et al. report that various factors have contributed to the decline in demand:
Construction materials cost inflation may have slowed from a peak in mid-2022, but the cumulative effect of high costs and higher interest rates over the past 18 months continues to weigh heavily on the financial viability of projects and on housing affordability. Additionally, labour constraints throughout the construction supply chain have contributed to the overall challenges faced by the sector.

Meanwhile, the CPA reports that the construction sector is entering an "acute" recession: 
The construction industry is expected to experience an acute recession this year driven by double-digit falls in the two largest construction sectors: private housing new build and private housing repair, maintenance, and improvement. The CPA forecasts construction output to fall by 7.0% in 2023...

Monday, 13 February 2023

‘Construction mineral products sales drop at fastest pace since 2012’

That's according to the Mineral Products Association
As the year closed, sales volumes of primary aggregates (crushed rock and sand & gravel) in Great Britain had fallen by 8.2% on an annual basis in 2022, asphalt fell by 6.5% and ready-mixed concrete by 3.8%, according to the latest quarterly survey by the MPA. Excluding the anomaly due to Covid in 2020, these are the fastest rates of decline recorded since 2012 for aggregates and asphalt, and the second fastest rate of decline for ready-mixed concrete.

Sunday, 21 February 2021

UK construction sector shrinks in January

UK construction output slipped again in January
The latest survey highlighted that construction companies have become more cautious about the business outlook. Output rebounded quickly after stoppages on site at the start of the pandemic, but hesitancy among clients in January and worries about near-term economic conditions resulted in a dip in growth expectations for the first time in six months.
In the minerals world, Nigel Jackson, CEO at MPA, warned:
2020 was the most challenging year any of us can recall, and recovering from it will continue to take time. 
The MPA reports that sales volumes were significantly lower in 2020 compared to 2019: 


What's the situation in Devon? Despite a Swiss multinational still intent on chewing up a greenfield East Devon farm for who knows how little material – we still don't have sand and gravel sales figures for 2019, let alone 2020. In which case, how can informed decision-making take place?

Friday, 22 January 2021

UK construction faces Brexit brain drain amid exodus of skilled EU workers

Another industry discovers the benefits of Brexit.


According to new research released by the Migration Observatory at the University of Oxford:
Numbers of European Union-born professionals working in the UK’s skilled construction and building trade dropped off by 46% in 2019.
Additional research released by the ONS this month found that the non-British resident population declined in the year through June 2020, with the biggest decrease among citizens of EU countries at -135,000.
These include migrants from Poland, Estonia and Slovenia, which make up 26% of the UK’s construction sector.

Thursday, 5 November 2020

UK construction

Construction News reports that almost 4,500 construction firms have fallen into financial distress in the third quarter of 2020. The Construction Index reports that profit warnings from stock market listed construction companies have reached a record high:
Most of these warnings (60%) have come from the building materials subsector, as the impact of Covid-19 travelled through the supply chain, rather than from contractors and engineers as found in previous years. 
Meanwhile, today’s Bank of England forecasts show that hopes of a V-shaped recovery have faded. The Bank now predicts the UK economy will shrink by 11% this year – including a 2% contraction in October to December.


In the world of aggregates, the Mineral Products Association points to a recovery over the summer, but now has concerns about winter order books.
 
In the third quarter of 2020, sales volumes were 1.1% lower for asphalt than in the same period in 2019, 6.8% lower for primary aggregates, 14.2% lower for mortar and 14.3% lower for ready-mixed concrete. Industry data on contracts for new construction projects suggest work may be feeding through, but heavy-side building material producers have yet to see a significant pick-up in orders.

Friday, 14 August 2020

GDP figures


Wednesday, 5 August 2020

Sales of sand & gravel fall 39% in Q2, report MPA


The MPA reports the impact of lockdown has been worse than the global financial crisis of 2007–2008. In contrast to the views of LafargeHolcim's CEO, who reckons the 'coronavirus tsunami' has passed:
Aurelie Delannoy, Director of Economic Affairs at the MPA, cautioned that the contraction seen so far only reflects the direct impact of the lockdown during April and May, not the overall impact of the pandemic and resulting macroeconomic weaknesses. “While there has been a gradual pick-up in activity since mid-May in England and Wales, much of this reflects post-lockdown pent-up demand. The industry therefore remains concerned about the shape, speed and resilience of the recovery over the next few months, particularly order books throughout the autumn and into the winter.”

Friday, 31 July 2020

Breedon reports £10 million pre-tax loss

What impact has lockdown had on the UK building materials sector?

Breedon Group plc – the largest independent construction materials group in the UK, operating 98 quarries following a deal earlier this year with Cemex – is the latest firm to see numbers decimated by lockdown.

Breedon Group plc have reported a pre-tax loss of £10.1 million for the six months ended 30 June 2020, down 126% on last year’s first-half pre-tax profit of £39.5 million. Revenue for the half year was down 25% to £335.3 million (2019: £447.4 million) and underlying EBIT was a loss of £0.6 million (2019: profit of £49.5 million).
What impact has lockdown had on Aggregate Industries? Parent LafargeHolcim does not split out financial figures for its UK subsidiary, but in an announcement yesterday revealed:
Results for the Europe region were impacted by COVID-19 with full recovery in June. Markets in Germany, Central and Eastern Europe were resilient. Strict lockdown measures in the UK and France impacted the performance of the region. Volumes suggest a V-shaped recovery in June for the majority of markets, except in the UK.