Aggregate sales approach fifty-year low

The Mineral Products Association (MPA) annual sales survey shows a 9% reduction in aggregates, cement and ready mixed concrete markets in 2012 and an 18% decline in asphalt sales.

The figures match the provisional construction output figures for 2012, which also indicate a 9% fall during the year.

Asphalt sales were hit by a 45% reduction in spending on road construction.

The rate of decline of aggregates, cement and concrete sales moderated in the fourth quarter, but in general markets remained very depressed throughout the year, the MPA said.

The decline in mining and quarrying activity, driven to a significant extent by the construction slowdown, were the main contributors to a 0.3% decline in UK gross domestic product (GDP) in the fourth quarter of 2012.

If construction markets had been flat in 2012, overall GDP would have increased by 0.7% instead of the recorded GDP standstill, the MPA said.

MPA chief executive Nigel Jackson said: “The MPA figures for 2012 highlight the scale of decline in construction industry markets in 2012. This was the lowest year for aggregates and concrete sales since 1965. We welcomed the increased funding for construction announced in the Autumn Statement but these increases are less than the volume of construction lost in 2012. In these circumstances it is now critical that we see real and accelerated delivery of the huge backlog of outstanding infrastructure projects. There has been enough discussion of the need for more and better infrastructure whether for housing, energy, utility or transport and the financing required. This is all now recognised and accepted. 2013 has to be about delivery, delivery, delivery. MPA maintains its offer to work with all arms of government to help secure the growth we need to turn the economy around.”

Although the chancellor of the exchequer has found an additional £1.1bn funding for road construction over 2013/14 and 2014/15, this is less than the £1.3bn cut in road spending in the first nine months of 2012.

RESULTS

% change over same period of previous year

• Cement data not yet available for Q4 and 2012

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