BDS publish block report

Consultancy publishes latest market statistics on concrete block companies in Great Britain

ALTHOUGH demand for building blocks increased slightly in both 2010 and 2011, according to the latest report on the industry, entitled ‘Estimated market shares of concrete block companies in Great Britain’, by BDS Marketing Research, the market in 2012 is likely to be down by around 6%, wiping out the gains of the previous two years.

Blocks suppliers have benefitted from an increase in popularity of traditional wall construction using blocks, and a return to building more houses rather than flats, which require more units for each dwelling. However, while some markets in the private sector have shown a degree of improvement in the current year, output in the public sector has continued to struggle.

BDS have also identified an increase in stocks held by block manufacturers, particularly in the aircrete sector. This will put pressure on margins as companies attempt to reduce stock levels. These trends are analysed in the BDS report, which also estimates the output of each of the 100 block plants operated by around 50 companies in the industry.

The consultancy estimates that Tarmac continue to be the largest block company in the industry, followed by Hanson and H&H. Together, these three companies make up nearly 40% of industry output. Other major companies in the sector are Aggregate Industries and CEMEX. However, these larger companies have lost some market share recently and four block plants have been closed.

BDS continue to believe that industry fortunes will start to pick up during 2013, although recovery is expected to be slow and will be from an historically low level. The consultancy is forecasting an increase of around 10% in demand over the next three years, but by 2015 demand for building blocks is still expected to be 40% lower than it was in 2007.

Further details of the report contact BDS Marketing.