GB sales of heavy-side building materials slump in 2Q20
The latest statistics released by the Mineral Products Association (MPA) show that sales of heavy-side building materials, including aggregates, ready-mix concrete (RMC), asphalt and mortar saw unprecedented declines during the 2Q20.
Aggregates sales volumes were 38 per cent lower, RMC 39 per cent and asphalt 28 per cent on a quarterly basis. The swift closure of housebuilding sites as the lockdown was announced in March resulted in the mortar market suffering an even sharper fall in demand, with sales volumes down by 61 per cent over the quarter.
Regionally, the decline in construction demand was particularly severe in Scotland, where the vast majority of construction sites were ordered to close, bar for some limited essential works. As a result, Scottish sales volumes of aggregates fell by 69 per cent over the quarter, asphalt by 85 per cent, and RMC by 89 per cent. Construction work has now been permitted to resume since 12th June wherever physical distancing can be maintained, suggesting some pent-up demand could be expected over the summer.
Nigel Jackson, CEO at MPA, added: “The next few months will be critical for all businesses in the mineral products industry, small, medium or large. It is welcome to see Government putting infrastructure, including for public health, at the heart of its recovery plans.”
MPA seasonally-adjusted sales volumes in Great Britain (Mt/Mm3)
