Difficult times for concrete block paving suppliers

DESPITE record investment in public works, suppliers of concrete block paving are currently experiencing the worst trading for more than 10 years. Production has fallen below 20 million sq m, a level not seen since the 1990s.

This is one of the conclusions of the latest BDS Marketing Research Ltd survey on the industry. The report estimates the outputs of all plants in the sector, provides further information on plant closures and openings, and produces a three-year industry forecast.

BDS have identified eight plants that have closed since 2006. These represented 12% of industry capacity when working. Sales have fallen by 22% over the same period and production has been cut back at other works to keep stocks at manageable levels.

With the industry needing the market to recover to ensure that other works are not forced to close, the consultancy is forecasting that the rate of decline will begin to slow and says there are signs that the housing market is beginning to recover.

By the middle of 2010, BDS expect sales to be improving and this trend is forecast to continue into the following year. However, cutbacks in government capital expenditure are expected, and BDS believe that this will hit the concrete block paving market from 2012 onwards.

The consultancy also estimate that Marshalls continue to be the largest concrete block paving manufacturer in the country, producing the most in five out of 10 economic regions. Brett, Aggregate Industries, Plasmor and CEMEX are the other market leaders, and together these five companies represent an estimated 87% of the market.

For further details contact BDS Marketing.