Asphalt sales hit a 10-year low

02/05/2024 | CHRIS AMES

Cost and funding pressures have driven UK asphalt sales to levels last recorded more than a decade ago, the Mineral Products Association (MPA) has reported.

The trade body said the results of its market sales survey highlight the depressed British construction industry and the need for a robust growth plan.

It added that, despite a 1.1% increase in primary aggregates sales over the last quarter, the overall trend across all markets monitored remains subdued, reflecting economic stagnation and extreme weather, including storms and record rainfall.

The MPA said the road sector has faced significant cost pressures over the past two years, leading to project delays and cancellations on National Highways’ roads programme, and strained road funding for local authorities, resulting in asphalt sales falling to levels last recorded in 2013.

It attributed historically low levels of ready-mixed concrete sales mainly to the contraction in housebuilding, as well as longer-term weaknesses in demand from new commercial offices and retail projects.

The MPA said demand for primary aggregates has been supported by the requirement for bulk fill materials on major infrastructure projects, particularly from HS2, but added that the lack of other significant new infrastructure projects remains a concern.

Its director of economic affairs, Aurelie Delannoy, said: ‘As the general election approaches, MPA urges all parties to prioritise a robust return-to-growth plan, anchored by the timely delivery of the infrastructure pipeline.

‘Streamlining planning processes for housing is important, but the Government must also tackle the significant cost pressures affecting infrastructure projects and local spending.

'Investing in local road repairs, upgrading transport networks, and delivering the housing, schools, hospitals, and energy infrastructure the UK economy needs are critical for both short-term and long-term growth, as well as advancing our goals to address climate change and sustainability.’

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