GB aggregates markets in 2020 expected to get back to 2007 levels
Aggregates markets in Great Britain are forecast to get back to the levels seen in 2007
by 2020. Currently, demand is nearly 20% lower than 10 years ago. Author of the
report, Andy Sales said ‘The aggregates industry can expect encouraging market growth
for the next few years. Yet by 2020, this will only bring the industry back to 2007
levels, which at the time, was regarded as a fairly typical year’.
These are some of the conclusions of a new BDS report on the aggregates industry
entitled: ‘The primary aggregates producing industry in Great Britain – Its structure,
markets and prospects’. This 47 page report brings together in one document, an
analysis of the current market and trends. It will be of invaluable use to all aggregates
companies and others such as suppliers of equipment and services, that rely on the
industry for much of their business. The aggregates industry represents a market of
around £2 billion and is key to the Government’s plans to boost infrastructure spending.
BDS has identified the importance of added value asphalt and concrete markets to
aggregates companies. Over 40% of aggregates are now sold into these sectors.
There have also been noticeable trends within individual aggregates sectors. Markets for lower grade materials have largely been lost to recycled and secondary aggregates. Difficulties of replenishing aggregates reserves have seen volumes of concreting gravel decline. These have been replaced by increasing sales of crushed rock concreting materials.
Despite the growth in alternative materials, BDS estimates that primary aggregates
continue to represent over 70% of the total aggregates market. ‘We do not expect this to
materially change’ said Andy, ‘Most demolition and construction waste is already being
recycled. There are some exciting developments taking place with secondary
aggregates, but these will have only a limited impact on total aggregates demand’.
The BDS report also reviews the current market position of the six largest aggregates
companies and assesses how these businesses are likely to develop. Information is also
provided on company market shares and the current reserves situation of the industry.