Brighter prospects for asphalt

A report just published by BDS Marketing & Research Ltd forecasts that the production of asphalt will increase by 10% over the next three years, bringing some welcome relief to an industry which has seen production fall by 35% since 1994.

BDS’s optimism is based on government plans to increase public spending on infrastructure. The consultancy believes that, as there have been so few new road schemes in recent years, only a small number of projects are needed to generate some recovery in the demand for asphalt.

BDS’s five-year forecast is part of an industry report entitled ‘Estimated market shares of asphalt companies (2000)’. The survey also reviews changes in the market and in plant ownership over the last two years. More than 30 asphalt plants have changed hands over this period.

Tarmac have increased their market share over the last two years, mainly due to their acquisition by Anglo American, and despite the divestment of a number of their asphalt plants. Hanson remain the second-largest company but are now only slightly ahead of Aggregate Industries, who experienced the most significant increase in share due to the purchase of several of Tarmac’s surplus plants and the organic growth of others within the company.

RMC, Lafarge and Foster Yeoman make up the remainder of the top six companies, who BDS estimate now represent around 85% of the market. With over 40 companies identified in the industry as a whole, the report provides an estimate of the output of every asphalt plant in the country.