Concrete products sector now worth over £1.8 billion

BDS Marketing Research (QMJ) Ltd publish new report on Great Britain’s concrete products industry

THERE are around 500 companies currently operating in the GB concrete products industry and the total value of the industry is now estimated at £1,846 million. This is one of the conclusions of a new report published this week by the leading industry research consultancy, BDS Marketing Research (QMJ) Ltd.

The aggregate building blocks industry is the largest single market, valued at around £400 million. ‘No other single sector represents more than 10% of the industry, but seven products are estimated to have a market value in excess of £100 million’ said the report’s author, Julian Clapp.

Further sections of the 40-page report identify company shares, trends and investments in 11 leading concrete products. BDS found noticeable differences in the market shares of the leading players.

‘In some sectors, such as roof tiles, drainage products, bricks, paving and block paving, the top two companies have 40% or more of the market,’ said Mr Clapp. ‘Yet in some markets, such as fence posts, most of the industry is represented by smaller, independent companies.’

The report also assesses the market coverage and likely development of seven of the largest companies – Marshalls, Aggregate Industries, Tarmac, FP McCann, Forterra, Creagh Concrete and Plasmor.

‘An analysis of the financial performance of 33 of the leading companies makes interesting reading,’ said Mr Clapp. ‘A step improvement was made in 2014, with pre-tax margins increased from less than 4% of turnover to over 7%. The conclusion is that after many years of low growth and margins, it took the industry around 12 months of improving sales before it had the confidence to seek better margins.’

There was some further margin improvement in 2015 and the industry now appears to be back to its longer-term average.

Final sections of the report cover industry prospects and development opportunities for manufacturers. BDS also identify future possible industry changes.

For further details, contact Andy Sales at BDS on tel: (01761) 433035; or email: [email protected]