What's Happening?
The Mineral Products Association (MPA) has reported a significant decline in the demand for ready-mixed concrete, reaching levels not seen since the early 1960s. In the second quarter of 2025, volumes dropped by 11.5% to 2.7 million cubic meters. Over the past year, sales totaled 11.9 million cubic meters, marking the lowest annual volume since 1963. The decline in concrete sales is accompanied by reduced asphalt volumes and falling sales of aggregates and mortar. The MPA attributes these trends to challenging market conditions, including rising costs, additional taxes, and a bleak macroeconomic outlook. Infrastructure projects are being delayed or deferred due to slow investment decisions and regulatory processes. The housing sector is also experiencing weakness, particularly in major cities, due to affordability issues and job insecurity.
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Why It's Important?
The drop in concrete demand signals broader challenges within the UK construction sector and the national economy. The decline affects business confidence and investment, potentially leading to job losses and reduced economic activity. The construction industry is a key driver of economic growth, and its struggles could have ripple effects across various sectors. The MPA's report highlights the need for government intervention to stimulate demand and support infrastructure projects. Without action, the industry may face further capacity reductions and business rationalization, impacting the livelihoods of thousands of workers. The situation underscores the importance of addressing economic uncertainties and fostering a conducive environment for investment and growth.
What's Next?
The MPA has called on the government to take measures to mitigate the fall in demand, including ruling out further tax increases, enhancing planning capacity, and ensuring public procurement supports domestic supply. Improving the performance of the Building Safety Regulator is also recommended to expedite approvals for higher-risk buildings. The industry is seeking immediate action to unlock stalled projects and support businesses in overcoming the cycle of weak growth and high costs. Stakeholders will be watching for government responses and policy changes that could influence the construction sector's recovery and future prospects.
