UK-based
Sales of aggregates increased by 4.8% compared to 2014, whilst RMC sales accelerated in 2015 (4.2%) compared to 2014 (+3.6%), increasingly influenced by infrastructure projects, with more modest contributions from housing. Reflecting slower housing activity throughout the year, mortar sales grew by 1.3% in 2015, after a 19% increase in sales volumes in 2014. Asphalt sales grew by 6.5% in 2015, boosted by faster than anticipated roads spending, but have declined in the last quarter of the year. Regionally, 2015 was a particularly strong year for the industry in Scotland, largely due to the timing of major projects.
MPA member sales represent around 80% of the total British market for aggregates, 75% of the RMC market and 90% of the overall asphalt market.
The preliminary GDP figures indicated that fourth quarter construction output contracted by 0.1% compared with the third quarter, after a fall by 1.9% in the previous quarter. Our data suggests a less gloomy picture for construction, with further increases in sales volumes in the fourth quarter in both aggregates and concrete markets.
Looking forward, general construction forecasts are said by the MPA to remain positive for 2016/19, driven by infrastructure work and more modest growth in the housing and commercial sectors. By 2018, aggregates sales are expected to be 11% higher compared to 2015, 9%-10% for ready mixed concrete, cementitious and mortar, and 12% up for asphalt sales.
Nigel Jackson, Chief Executive MPA, commented: “Activity in the sector slowed in the second half of 2015, but our data are generally more positive than official figures suggest. Market growth has been more influenced by infrastructure work than housing, a shift that was anticipated given planned investment in sectors such as transport and energy. It is essential that government continues to implement plans for greater infrastructure and housing delivery to give industry the confidence to continue investing in the supply chain.”
