UK aggregates markets now enjoying growth

BDS Marketing Research Ltd forecast 5% rise in demand in each of the next three years

UK aggregates markets are now recovering strongly and expected to increase by 4% during 2013, according to the latest annual report from BDS Marketing Research Ltd.

The consultancy is also forecasting continued growth in subsequent years and says it expects demand to increase by around 5% in each of the next three years.

This positive news comes after a difficult 2012 which saw markets for sand and gravel and crushed rock decline by 12% and 7% respectively.

The BDS report estimates the outputs of all pits, quarries and marine wharves in Great Britain, allowing company market shares at a local, regional and national basis to be calculated.

It also lists more than 40 quarries that have closed or been mothballed over the last year, but says this has been balanced by around 30 sites that have opened or reopened over the same period.

Despite the positive forecast, BDS say markets remain patchy with aggregates demand increasing in the Midlands and Wales, but remaining subdued in northern England and Scotland. However, after a couple of good years, markets in the South East are now said to be performing similar to the national picture.

In the report BDS have calculated market shares for Lafarge Tarmac both before and after the joint venture. Although new entrants Hope Construction Materials are a major ready-mixed concrete supplier, they have a relatively small presence in aggregates.

‘This is now a market of four leading national players, with Lafarge Tarmac, Hanson, Aggregate Industries and CEMEX having around two-thirds of the market,’ said Julian Clapp, lead consultant at BDS.

For further details about the report, entitled ‘Estimated outputs of pits, quarries and marine wharves in Great Britain’, contact BDS Marketing.