Aggregates companies gearing up for higher volumes

Over the past year, 38 pits and quarries have opened as aggregates companies respond to higher volumes. Markets increased by 4% in 2015 and further growth is expected in

These are some of the conclusions in the latest annual report by industry specialist, BDS
Marketing Research entitled ‘Estimated outputs of pits, quarries and marine wharves in
Great Britain’. Reviewing the latest trends, report author Andy Sales said, ‘The industry
has been successful in opening new quarries or re-opening existing sites that shut during
the recession. However, aggregates companies have also closed 47 quarries over the
same period. Most of these were the result of reserves being exhausted. This is an
increasing issue for the industry’.

The BDS outputs report has identified Tarmac as the largest quarrying company. The
consultancy estimates that Tarmac’s share is around 25% of the aggregates market.
The top five companies are Tarmac, Aggregate Industries, Cemex, Hanson and
Breedon. BDS estimates that these companies have nearly 70% of the total aggregates
market.

The BDS report provides an estimated output for all of the 800 pits, quarries and marine
wharves currently operating in Great Britain. This report is the only independent source
of information on the outputs and shares of all sites and companies in the country. It
also includes details of major planning developments since the last report was
published, and BDS’s own independent three year industry forecast.

The consultancy expects further growth in aggregates volumes during 2016, of around
5%. For next year, BDS is expecting some further growth but at lower levels. This is
due to economic uncertainty and the timing of major infrastructure schemes. By 2018,
BDS is forecasting stronger growth as schemes such as Hinkley Point and several major
road contracts will require significant volumes of aggregates.