BDS publish annual asphalt report

Latest industry analysis indicates recent growth in asphalt markets to be followed by more difficult times

THE UK asphalt market increased by more than 5% in 2010 but has now started to decline, according to industry analysts BDS Marketing Research Ltd. The consultancy is forecasting volumes to be around 1% lower in 2011, with further decline expected to set in over the next two years.

BDS say volumes could fall by up to 15% by 2013, largely due to the lack of new road schemes in the pipeline, once current road projects have been completed.

However, this downturn is less than previously feared, says the consultancy. Original research undertaken by BDS into future local authority road maintenance expenditure shows that, overall, councils are not expecting to cut spending in the current financial year. This is a more optimistic scenario than the headline figures would suggest.

The annual BDS report on the asphalt industry, entitled ‘Estimated outputs of asphalt plants in Great Britain’, identifies Tarmac as the largest asphalt supplier, a position they have held for many years.

The top five companies also comprise Aggregate Industries, Hanson, CEMEX and Lafarge, who between them are estimated to have over 80% of the market. The rest of the market is represented by around 30 companies.

BDS believe that Aggregate Industries are the largest asphalt supplier in the South East, the East Midlands and Scotland, while Tarmac are thought to be the largest producer in other regions of the country.

During the past two years, the industry has closed more than 30 plants, representing 7% of industry capacity, although this is less than the fall in the market over the same period. The consultancy expects further closures once the market turns down significantly.

For further details contact BDS Marketing.