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 ten years ago.
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.
Author of the report, Andy Sales says: “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.”
The 47-page report brings together in one document, an analysis of the current market and trends, and BDS says it will be of invaluable use to all aggregates companies and others such as suppliers of equipment and service that rely on the industry for much of their business.
The aggregates industry represents a market of around £2 billion (€2.85 billion) and is key to the government’s plans to boost infrastructure spending.
BDS says it 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 Difficulties of replenishing aggregates reserves have seen volumes of concreting gravel decline, and these have been replaced by increasing sales of crushed rock concreting materials.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. 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,” says Sales.
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.
Further details of the report are available by contacting Andy Sales at BDS on +44 (01761) 433035 or email
