UK aggregates, asphalt and ready-mixed concrete output slightly down in 2018

UK aggregates, asphalt and ready-mixed concrete output is down by around 1% in 2018 compared to the previous year, according to 671 BDS Marketing Research’s annual reviews of outputs in the major heavy building materials markets.

Changes in company and site ownership following disposals and acquisitions have, says BDS Marketing Research, affected UK building materials market shares, particularly in regional markets. 868 Tarmac has emerged as the leading supplier in the key markets, replacing 1343 Hanson as the leading producer of ready-mixed concrete, albeit with only a slightly larger market share.

The top five companies are the same in each of the three analysed British markets, albeit with varying positions depending on the product. 1707 Aggregate Industries, 643 Cemex and 894 Breedon complete the picture. The market share of the top five is around 72% in aggregates (including marine sand and gravel), 81% in the asphalt market and 63% in the ready-mixed concrete market (which includes mobile batching plants – aka volumetric trucks).

With the exception of Hanson, each of these companies is involved in the manufacture of one or more concrete products. Tarmac holds the largest share of the building block market (including aircrete), while Marshalls leads the way in block paving and paving slab manufacture. BDS Marketing Research has produced separate reports for each of these products. These three markets all saw growth, of between 1-5% over the previous year.

Each BDS Marketing Research report provides estimated outputs at individual site level, with volumes and market shares shown at county, regional and national level. Aside from the five major producers, there are significant numbers of sites and producing companies in each sector, many with a strong regional or local presence.

Details of planning activity for extensions and new facilities, supporting existing and proposed growth across the industry, is also included in the new BDS Marketing Research reports. BDS monitors each of the 400+ planning authorities on an ongoing basis to track new schemes and decisions on existing proposals.

Each report also contains an economy-wide construction forecast for the next four years, along with a product-specific forecast. BDS expects each heavy building materials market to continue to continue to be relatively flat until 2020, due partly to major infrastructure project delays and Brexit uncertainty. The early part of the next decade is expected to see all sectors return to growth, underpinned by increased housing construction and the delivery of the government’s infrastructure programme.