Mineral Products 2016: Essential to Growth – Building Britain

Released at the Mineral Products Association’s (MPA) annual conference on 9 June, the organisation’s latest report, ‘The Mineral Products Industry at a Glance’, provides a valuable source of information on the Mineral Products industry, documenting the changing patterns in the way we produce and consume our minerals and the manufactured products derived from them.

Presenting detailed analysis of the latest data for each product, the review highlights the significant contribution the industry makes to the UK economy from over 2,000 active sites and plants.

Key facts from the document are:

• 360mt GB production of aggregates and manufactured mineral products.
• £20bn Annual turnover. 
• £6.4bn Gross value added of our industry. 
• £495bn Turnover of industries we supply.
• £144bn Value of construction, our main customer. 
• 78,000 People directly employed in our industry.
• 3.4m Jobs supported through our supply chain.

As the largest element of the construction supply chain, a supplier of key materials to many other industries and the largest material flow in the UK economy, a healthy domestic Mineral Products industry is essential for the UK economy. This report makes the link between the industry output, the majority of which is used in the UK construction industry to improving our housing stock, transport networks, commercial and industrial buildings, utilities, schools and hospitals.

New research from the MPA reveals that the mineral products industry is the largest volume industry in the UK, with 1 million tonnes of aggregates, asphalt, cement, concrete and other mineral products supplied every day.

Further headline figures include:

• The Mineral Products Industry is a highly productive industry: each worker produced about £82,000 in 2014, 1.6 times more value added than the national average.
• In 2015, UK primary aggregates sales totalled 118mt in England, 17mt in Wales, 28mt in Scotland and 20mt in Northern Ireland. 
• Current UK construction projects mean demand for mineral products rise by 11%-16% by 2019, supporting growth.
• Climate change and energy measures in 2015 were equivalent to 11% of the GVA of the cement industry, but this proportion could increase to 67% by 2020 (from £41 million to over £287 million per annum). The annual cost of the Aggregates Levy alone reached £361m in 2015.
• Recycled & secondary materials now account for 28% of the GB aggregates market, putting the UK at the forefront of the circular economy.

Commenting, MPA’s Chief Executive, Nigel Jackson said: “Mineral products are the essential element of construction and many other production and manufacturing industries. Current Government policy on infrastructure and housing are dependent on these products and this report provides a wealth of detail about products that everyone in the UK uses but too few are aware of. Hopefully this annual update will help raise awareness of our sector’s contribution to the economy and the UK.”