The UK government pledged £2.5bn for the Potholes Fund over five years in its March 2020 Budget, in addition to increased and accelerated spending on infrastructure projects
The announcement threw some crumbs of comfort to materials suppliers for the road surfacing industry, according to new analysis from BDS Marketing. The analysis provides details for companies looking for a roadmap to identify when and where new contract opportunities will become available.
Much of the newly-announced spend will be taken on by local authorities through their Term Maintenance Contracts.
BDS Marketing’s latest annual report on Term Maintenance Contracts provides details of the arrangements local authorities and other significant bodies have for the maintenance of their highways. Around 340 separate contracts, frameworks, and in-house provisions have been identified.
The top six asphalt producing companies (Aggregate Industries, Breedon, FM Conway, Cemex, Hanson and Tarmac) which between them account for around 85% of asphalt production in Great Britain, all have their road surfacing divisions. These companies are a named contractor in 27% of the term maintenance contracts held by local authorities. This leaves a significant number of contracts to let to other national, regional and local contractors. Leading those are companies such as Eurovia/Ringway, Colas, Amey, Keily Bros, Volker and Kier.
The latest BDS report shows that 40% of the contracts identified are due to expire before the end of 2021.
The information in the report will be of value to companies looking for a roadmap to identify when and where new contract opportunities will become available as well as indicating potential targets for acquisition to enable existing contractors to expand of for new companies to enter the market.
