UK asphalt market shows further signs of recovery
Latest BDS Marketing report shows demand for asphalt could rise by a further 10% in 2015
RECOVERY in the UK asphalt market from the middle of 2013 has continued into the current year. Demand for asphalt last year showed an increase of 8% and this could rise by a further 10% in 2015.
These are some of the conclusions of BDS Marketing’s annual report on the sector that has just been published, entitled ‘Estimated outputs of asphalt plants in Great Britain’.
Commenting on the report, principal consultant Julian Clapp said ‘There are several major road schemes that have benefitted the industry, whilst asphalt producers have also seen growth in private sector markets. However, our research suggests that local and central Government expenditure on road maintenance is falling which makes us cautious about the future.’
BDS expect further growth in each of the next two years, but by less than 5% a year.
The report identifies Tarmac as the largest asphalt supplier with around one third of the market. The top five companies also comprise Aggregate Industries, Hanson, CEMEX and Breedon. Between them, these companies are estimated to have more than 80% of the market, with the reminder represented by around 30 companies.
On a regional level, BDS estimate that Tarmac are the largest asphalt producers in most regions, with Aggregate Industries usually the second largest company in each region.
The industry has seen a number of changes since BDS last published their annual report. These have included: formation of the LafargeHolcim joint venture; the reappearance of the Tarmac name (under CRH ownership); and further development by Breedon.
In its latest report, the consultancy has also identified four plants that have closed, all previously operated by the majors. This has been balanced by four new plants, all operated by independent companies.
A further six new or replacement plants are being built, while another four facilities are currently the subject of a planning application. Mr Clapp commented: ‘The net result is that industry capacity is increasing. There has also been a small but noticeable shift towards the smaller companies.’
For more details contact BDS Marketing.
