What's Happening?
The Mineral Products Association reports that sales of ready-mixed concrete have dropped to levels not seen since the early 1960s, with volumes falling by 11.5% in the second quarter of 2025. This decline reflects broader challenges in the construction sector, including reduced business confidence and investment. The MPA attributes the downturn to rising costs, additional taxes, and slow infrastructure project approvals. The cancellation of several infrastructure projects further dampens confidence in the sector, impacting jobs and economic growth.
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Why It's Important?
The decline in concrete demand signals significant challenges for the construction industry, which plays a crucial role in economic development. Reduced investment and project delays may lead to job losses and hinder growth in related sectors. The situation calls for government intervention to stimulate demand and support infrastructure development. Addressing these challenges is vital for maintaining industry stability and ensuring long-term economic resilience.
What's Next?
The MPA urges the government to take action by ruling out further tax increases, enhancing planning capacity, and supporting domestic supply through public procurement. Stakeholders will likely advocate for policy changes to unlock stalled projects and boost industry confidence. The construction sector's recovery depends on effective government measures and increased investment.
