Improvement in ready-mixed concrete markets in 2011

Markets improved by 8% in 2011 but higher volumes unlikely to be sustained this year, says new BDS report

READY-MIXED concrete markets in Great Britain increased by an estimated 8% during 2011 – a welcome improvement on the fall of more than 30% which occurred over the three previous years.

However, the concrete industry has not been able to sustain these higher volumes in 2012 and industry marketing consultancy BDS Marketing Research Ltd expect that volumes will fall back to their 2010 level in the current year.

These are some of the conclusions of the consultancy’s annual report on the industry entitled: ‘Estimated market shares of ready-mixed concrete companies in Great Britain’, which estimates the market shares of all companies in the industry by county, regionally and nationally.

As well as giving a three-year forecast, the report identifies plants and companies that have both closed and opened over the past 12 months.

Although nationally markets were higher during 2011, BDS did not find this to be the case across all regions. Much of the growth centred on the South East where the market increased by more than twice the national average. However, the ready-mixed concrete market in Wales and northern England fell last year.

The industry still awaits the outcome of the formation of a joint venture between two of the top five concrete companies in the UK – Tarmac and Lafarge. To satisfy Competition Commission requirements, these companies have to sell off a number of ready-mixed concrete plants, as well as interests in cement, aggregates and asphalt.

The Commission has indicated a preference for one company to acquire all of the concrete plants, and BDS believe this would create a business that would be the third largest ready-mixed concrete supplier in the industry.

According to BDS, Hanson are currently the largest ready-mixed concrete suppliers in the country, followed by CEMEX. Between them, the top five suppliers are estimated to have over 70% of the market, similar to the previous year.

The consultancy also estimates that Hanson are the largest suppliers in southern England and Wales, while CEMEX are the leaders in East Anglia and Yorkshire, and Tarmac are the largest in northern England.

Although the concrete market is subdued at present, BDS are cautiously optimistic that prospects will turn for the better in the second half of 2013. Overall, the consultancy is forecasting that the market next year will be similar to the current year, before returning to growth in 2014.

Further details are available by contacting BDS Marketing.