Aggregates production in Northern Ireland has fallen by 45% since the recession started in 2008, and the situation is particularly acute in sand and gravel, where volumes are less than half of a few years ago. These are some of the conclusions of industry marketing consultancy, BDS Marketing Research’s latest report on the sector. The report estimates the outputs of all sand and gravel pits and crushed rock quarries in Northern Ireland, by company and location. Every one of the known 125 pits and quarries a
Aggregates production in Northern Ireland has fallen by 45% since the recession started in 2008, and the situation is particularly acute in sand and gravel, where volumes are less than half of a few years ago.
These are some of the conclusions of industry marketing consultancy, BDS Marketing Research’s latest report on the sector.
The report estimates the outputs of all sand and gravel pits and crushed rock quarries in Northern Ireland, by company and location. Every one of the known 125 pits and quarries are included.
BDS estimates that Lagan is the largest aggregates company, with a share approaching 10%. If aggregates used for cement production are included, then Quinn is the largest aggregates supplier. BDS estimates that the top ten aggregates companies represent an estimated 55% of the market.
Despite the major decline in the market, BDS has identified that all of the top 20 leading companies at the start of the recession are still in business.
It says the industry has tended to keep most of its sites open, but has seen volumes fall at each location.
In 2007, BDS estimated that there were 17 sand and gravel pits producing over 100,000tonnes a year. Now, it has identified just four sites. A similar picture was found in crushed rock. From 30 quarries extracting over 250,000tonnes/year, BDS now believes that there are only ten.
As well as grappling with lower volumes, aggregates companies have also been faced with lower prices, despite costs increasing such as energy, production and environmental costs.
Although the size of the market is largely beyond the control of the industry, BDS believes that rationalisation of the industry is required if companies are to see an increase in prices and margins.
“There are too many companies chasing not enough work,” says BDS’s director Julian Clapp. “The recent announcement of a joint venture between Lagan and Quinn is welcome, but more needs to be done.”
Further details of the report, Estimated outputs of pits and quarries in Northern Ireland is available by contacting Andy Sales at BDS on (01761) 433035 or email andy.sales@bdsmarketing.co.uk or www.bdsmarketing.co.uk
The report on quarry outputs has been published at the same time as equivalent reports on ready-mixed concrete and asphalt.
