What's Happening?
The Mineral Products Association (MPA) reports that sales of heavy-side construction materials remain at crisis levels, with significant declines in demand for ready-mixed concrete. Sales fell by 0.8% compared to the previous quarter and are 12% lower
than the same period in 2024. The slowdown is particularly sharp in London, where concrete sales dropped by 32% year-on-year. The MPA attributes this to a widespread slowdown in housebuilding, worsened by planning delays at the Building Safety Regulator. The association warns that the downturn is forcing material suppliers to mothball sites, reduce capacity, and lay off skilled staff.
Why It's Important?
The construction materials sector is a key indicator of broader construction activity, and its decline signals potential challenges for the industry. The slowdown in London, a major hub for construction, could have ripple effects across the UK economy. The reduction in capacity and workforce could hinder future supply and recovery efforts. The MPA is calling for government intervention in the Autumn Budget to stimulate infrastructure and housing delivery, which is crucial for reversing the current trend and supporting economic growth.
What's Next?
The MPA is urging the government to provide immediate support for infrastructure and housing in the upcoming Autumn Budget. This includes tax breaks on plant investment, stronger road maintenance programs, and improved planning performance. The association emphasizes the need for urgent action to prevent further job losses and capacity reductions, which could jeopardize future construction projects and economic stability.
