Latest sales data from members of the Mineral Products Association (MPA) reveals a decline in sales volumes during the second quarter of 2023.
Asphalt volumes dropped 3.1% compared to the first quarter and primary aggregates (crushed rock, sand and gravel) declined by 3.7%. If there had been an upturn in infrastructure activity, it should be reflected in the sales of these fundamental materials.
However, sales of building materials fell by even more. Ready-mixed concrete sales were down by 5.2% in the second quarter and mortar by 6.4%.
MPA data shows that, although there was a post-covid rebound in 2021 that propelled asphalt and crushed rock sales to their highest levels in more than a decade, new construction project starts have now slowed and led to a renewed decline in demand for building materials.
MPA forecasts that sales volumes for all markets monitored will contract in 2023 – marking the second consecutive year of decline.
Aurelie Delannoy, director of economic affairs at the MPA, said: "The latest MPA survey clearly illustrates the current challenges faced by the construction industry and its supply chain, including mineral products manufacturers. The decline in sales volumes for essential materials like asphalt, aggregates, ready-mixed concrete and mortar reflects the slowdown in key construction sectors, including housing. As we navigate these headwinds, the industry and policymakers must remain focused on addressing longer-term challenges and seizing opportunities, particularly in delivering crucial policy ambitions for housing and infrastructure.
“However, the government's propensity to over-promise and under-deliver presents a clear roadblock. Recent records show a pattern of grand policy statements and targets followed by repeated U-turns, project delays, a lack of clarity on material needs related to infrastructure and housing plans – all in the context of a persistently challenging economic and political environment. Such an approach hampers investment decisions and business operations. It is high time to prioritise UK growth."
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