Concrete gross sales hit 62-year low

New figures appearing that concrete volumes hit a 62-year low in the second one quarter of 2025 are fuelling fears of plummeting trade self belief, stalling funding and additional using down development call for.

Knowledge from the Mineral Merchandise Affiliation (MPA), in keeping with gross sales volumes throughout Nice Britain within the closing quarter, additionally displays asphalt volumes during the last 4 quarters are the bottom in a decade. Aggregates and mortar gross sales additionally fell in Q2 2025.

Able-mixed concrete volumes dropped by way of 11.5% to only 2.7 million cubic metres (Mm³) in Q2 2025. During the last 4 quarters (Q3 2024 to Q2 2025), general gross sales had been 11.9 Mm³ – the bottom since 1963.

Volumes throughout all primary mineral merchandise rather then mortar at the moment are at traditionally low ranges, monitoring underneath closing yr’s already vulnerable volumes. And it is not as a result of we’re all the use of different fabrics; its since the paintings has dried up. The MPA is looking for presidency motion to unlock stalled development tasks.

Discounts in gross sales of concrete could have had a knock-on affect on cement gross sales, which aren’t lined by way of this knowledge however are reported one at a time.  The newest set of cement knowledge, for 2023, confirmed each vulnerable gross sales and, extra considerably, close to record-low home manufacturing with an exceptional percentage of imports, at 32% of the United Kingdom marketplace. That is in large part pushed by way of excessive electrical energy costs, excessive labour prices and a burdensome regulatory atmosphere, in line with the MPA.

The MPA had up to now projected modest enlargement from a low base throughout those merchandise in 2025, however this now seems not likely, in line with MPA director of financial affairs Aurelie Delannoy. A worsening macroeconomic outlook, emerging prices and extra taxes, plus mounting hypothesis over additional tax rises within the autumn, are all contributing to loss of funding additional weakening call for.

Self belief around the mineral merchandise sector used to be already low however has evaporated in line with those pressures, in line with the MPA. Manufacturers level to a protracted loss of new massive and small-scale infrastructure tasks, hampered by way of sluggish, behind schedule or deferred funding selections, value pressures and slow regulatory processes. The HS2 ‘reset’ appears to be like set to have a unfavorable affect on call for this yr, whilst highway constructing remains to be plagued by way of uncertainty. July’s cancellation of the A12 Chelmsford to A120 widening and the A47 Wansford to Sutton schemes adopted 5 different challenge cancellations in closing yr’s finances to additional harm self belief in infrastructure supply.

In housing, MPA participants proceed to record vulnerable process, in particular in London and different primary towns. Whilst decrease rates of interest have eased loan prices, chronic affordability pressures, excessive inflation and rising process lack of confidence proceed to weigh on purchaser self belief. Mortar gross sales, carefully tied to early-stage housebuilding, fell by way of 2.7% in Q2, finishing 4 consecutive quarters of enlargement. Delays on the Construction Protection Regulator with the brand new Gateway 2 approval procedure are delaying high-rise housing traits.

Aurelie Delannoy mentioned: “This quarter’s knowledge provides a stark reminder that marketplace stipulations stay extremely difficult for the mineral merchandise sector. A fourth consecutive yr of declining gross sales is now a major chance, together with to jobs.

“What we’re seeing isn’t just the problem of a particular business marketplace; this can be a broader sign of a UK development sector and nationwide financial system caught in first tools, hampered by way of vulnerable self belief, patchy challenge supply and a protracted loss of tangible call for. In spite of the federal government’s certain long-term bulletins, companies are nonetheless looking forward to any concrete indicators that the United Kingdom is able to make investments and to construct once more.”

MPA government chair Chris Leese added: “Lots of our participants are telling us that the present buying and selling stipulations are probably the most tricky they have got ever skilled, together with the 2007/08 monetary disaster, whilst in concrete the knowledge displays it’s the worst in a life-time and not using a indicators of restoration.

“The underlying drawback is a complete loss of trade self belief resulting in a loss of funding required to kickstart process. The mineral merchandise business actually supplies the foundations for the entire financial system, using 80,000 hard-working other folks in high-value, high-productivity jobs around the nation, however within the present local weather our participants will haven’t any choice rather then to mothball capability and rationalise their companies.

“Building is a crucial pressure for enlargement in the United Kingdom financial system and those gross sales figures are a transparent indicator that motion is needed. We’d like motion now to release stalled tasks, again the companies that can construct them, and escape of this cycle of vulnerable enlargement and excessive prices. Our participants aren’t best in a position to ship; they’re additionally more and more impatient for the fitting stipulations that might create the chance to take action.”

As we now have up to now reported, the cement and concrete sector could also be aggrieved that the federal government has revealed a solution to reinforce the metal business and a roadmap to extend using trees in house-building however seems to have no real interest in mineral merchandise, regardless of their elementary significance to infrastructure repairs and development.

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