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Aggregate sales start to recover

Construction aggregate and concrete sales rebounded in 2013 but remain 30% below pre-recession levels.

A member survey by the Mineral Products Association (MPA) reveals that sales volumes of aggregates increased by 6% in 2013 with concrete sales up by 11% and asphalt 4% higher than in 2012.

Following a poor first quarter industry volumes started picking up in April and fourth quarter sales remained positive.

The figures reflect the sharp improvement in housing starts following the first quarter, with housing-related material sales 25% higher in the final nine months of 2013 than the same period of 2012. The MPA figures indicate improvement in construction markets other than housing. Signs of improvement are evident throughout England, Scotland and Wales, although unevenly.

MPA public & economic affairs director Jerry McLaughlin said: “The improving trends over the past nine months are very welcome but of course come from a very low base. 2012 was very negative for our industry and construction and the 2013 volumes broadly get us back to 2011. We need to see significantly more growth in business throughout GB before we can talk about recovery with greater confidence. As such it is vital that government continues to focus on sustained economic growth, delivery of outstanding infrastructure projects, more housing and measures designed to encourage confidence to invest.”

 

Mineral Products Association quarterly construction material trends

(% change over same period of previous year)

 

 2012 Q2

2012 Q3 2012 Q4 2012 Yr 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Year

Crushed Rock

-10

-4

+1

-7

-1

+17

+9

+8

+7

Sand & Gravel

-15

-11

-11

-12

-8

+9

+9

+7

+5

Asphalt

-16

-20

-16

-18

-18

+9

+11

+14

+4

Ready mixed  Concrete

 

-11

 

-9

 

-4

 

-9

 

-4

 

+18

 

+10

 

+10

 

+11

Cement*

-10

-8

-7

-7

-7

+10

+13

na*

na*

*Cement refers to domestic cement sales – data for Q4 2013 will not be available until April 2014

The figures give sales trends by volume of material sold for a sample of Mineral Products Association members. MPA members represent approximately 85% of the GB cement market, 80% of the market for crushed rock aggregates, sand & gravel aggregates and asphalt, and 60% of the ready-mixed concrete market.

 

The Construction Index Uk News

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