Prospects encouraging for ready-mix producers
New report from BDS Marketing Research forecasts 18% increase in demand by 2020
DEMAND for ready-mixed concrete has recovered more than half the decline experienced by producers after the 2007 recession, with the industry now producing more than 23 million cubic metres of concrete per annum. There is, however, still some way to go, as demand has averaged 26 million cubic metres a year since the 1970s.
These are some of the conclusions of a report published by BDS Marketing Research Ltd entitled: ‘The ready-mixed concrete industry in Great Britain – its structure, markets and prospects’.
The consultancy, which specializes in the heavy building materials sector, is forecasting an 18% increase in ready-mixed concrete demand by 2020. ‘We are expecting further increases in housing demand, together with growth in other private sector markets’, said the report’s author, Andy Sales. ‘Hinkley Point will also benefit the industry, assuming it goes ahead’.
The volumetric concrete sector has also been growing and BDS estimate that this market now represents more than 10% of total production. However, the penetration of volumetric companies varies around the country, with the east of England and the North West representing the largest markets.
Although there has been growth in volumetric concrete, analysis undertaken by BDS shows that it is the smaller, independent concrete companies that have seen the most significant increase in market share.
A total of 36 consents were identified during 2015 for new ready-mixed concrete plants. Of these, one third have been proposed by the national companies, a third by smaller businesses with the rest by new entrants to the industry.
The 45-page BDS report provides a background to the current market and structure of the ready-mixed concrete industry, making it a valuable reference document for all companies operating in the sector, those that are considering future investment in the sector, and organizations that rely on the market for their business.
For further details, contact Andy Sales at BDS Marketing on tel: (01761) 433035; or email: [email protected]
