After a dreadful first three quarters to 2024, by October sales finally began to turn around.
Sales of ready-mixed concrete in Great Britain rose by 5.7% in the fourth quarter of 2024, compared to the previous quarter, although sales construction aggregates (crushed rock, sand and gravel) saw a more modest increase of 0.6%.
Mortar volumes rose by 2.4% in the same period, the Mineral Products Association (MPA) survey found.
While these increases are from a low base after several difficult years for the sector, the latest MPA figures provide evidence of recovery in construction markets, the association said. The survey tracks the tonnages sold for aggregates, asphalt, ready-mixed concrete and mortar – materials essential for the foundations and fabric of all new structures.
For mortar, which is predominantly used in housebuilding, sales volumes have now risen for three consecutive quarters, reaching their highest level since Q3 2023. This indicates a slow but steady revival in housebuilding activity during the second half of 2024, mirroring trends in other housing market indicators, including increased mortgage approvals and rising house prices.
Despite these encouraging signals, the MPA data also underscores the severity of the construction slowdown over the past two years. Annual mortar sales fell by 15% in 2024 as a whole, dropping below 2.0 million tonnes – and 28% lower than their 2022 peak of 2.7 million tonnes.
Similarly, ready-mixed concrete volumes were down 10.8% across 2024, slumping to its lowest level in over 60 years. Primary aggregates sales were down 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. In contrast, crushed rock held up better, supported by demand from major infrastructure projects, particularly HS2. Meanwhile, asphalt sales fell by 2.7% over the year, affected by delays and cancellations of road schemes and ongoing constraints on local authorities’ budgets for road maintenance.
MPA director of economic affairs Aurelie Delannoy said: "The industry has weathered steep losses in demand over the past three years, despite successive governments setting ambitious targets for housing, infrastructure and public buildings such as schools and hospitals. In 2024, every market monitored recorded sales volumes weaker than even the Covid-impacted year of 2020. That is why the recent signs of recovery in the second half of 2024 are particularly welcome.”
MPA forecasts modest growth in mineral product sales in 2025, driven by improving economic conditions and a gradual recovery in the housing market. Major infrastructure projects are also expected to bolster demand for aggregates and ready-mixed concrete.
Regional data from 2024 shows the impact that individual infrastructure projects can have on materials sales. For example, while asphalt sales declined in most regions last year, the southwest of England saw a 9.9% rise, driven by the completion of two major road projects, the A30 and A303.
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