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Survey forecasts long-term recovery in volumes

A MAJOR market survey of the aggregates industry, recently published by BDS Marketing & Research Ltd, forecasts a recovery in the market for primary aggregates in the second half of the current decade but warns that short-term prospects are likely to remain disappointing. The sector is being affected by the growth of recycled aggregates while output in the wider construction industry is also sluggish.

However, BDS expect some growth in demand after 2007, by which time it is thought that recycled and secondary aggregates will have reached their natural level of penetration, with only limited further erosion of primary aggregates markets.

Moreover, if London is successful in its bid for the Olympics, this will have a beneficial effect on demand for all aggregates. But even if the capital is unsuccessful, BDS still expect the market to increase, due to the large number of major housing schemes planned, particularly in the South East.

 

The forecast is contained within a report entitled: ‘The prospects, opportunities and likely future structure of the aggregates producing industry in Great Britain’. This also assesses the likely future industry structure and identifies 12 products and markets that BDS believe provide development opportunities for aggregates companies. In the report, BDS introduce the concept of Quarry Service Centres to improve aggregates companies’ marketing to the small-loads sector.

 

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