Sales and growth opportunities remain on offer in the UK and Irish building materials and quarrying machinery markets. Guy Woodford reports.
The UK Government is being urged by a key industry advocate to support the quarrying and aggregates sector through proactive policy changes.
The suggestion follows the release of new data from the Minerals Product Association (MPA) that shows a mixed outlook for the sector in key areas. The MPA believes new policies could enhance this outlook.
According to the latest sales volume survey by the Mineral Products Association (MPA), the demand for heavy-side materials in Great Britain weakened further at the start of this year.
Sales of ready-mixed concrete and asphalt fell by 6.3 per cent in the first quarter of 2025 compared to the previous quarter, while primary aggregates (crushed rock and sand & gravel) recorded a modest increase of 0.5 per cent.
Mortar sales provided a rare bright spot, rising for a fourth consecutive quarter (+3.8 per cent) and signalling tentatively improving housebuilding activity.
The latest results reflect the continuing challenges facing the construction sector and its supply chain, including patchy economic growth, cost pressures, persistent planning delays, and project cancellations, all of which continue to undermine confidence in investing in new projects.
Demand for ready-mixed concrete, a material used in all types of construction, has fallen to around three million cubic metres per quarter, its lowest level in 60 years.
Infrastructure markets present a mixed picture. Major projects such as HS2, Hinkley Point C and Sizewell C, alongside several offshore wind projects underway, continue to support demand for construction mineral products, particularly aggregates and ready-mixed concrete.
This strength is offset by a significant road sector weakness. Asphalt sales in the first quarter of 2025 were the lowest since 2013 outside of the pandemic period, impacted by the cancellation or delay of key strategic road schemes and continuing financial constraints on local authority maintenance budgets.
Overall, broader infrastructure activity remains patchy, with delays and cost pressures continuing to challenge project delivery across the public and private sectors.
Housebuilding activity shows some signs of recovery. Mortar sales have risen for four consecutive quarters, suggesting a slow but steady improvement in housebuilding activity. However, the wider housing market recovery remains highly sensitive to household confidence and borrowing conditions, with higher mortgage rates and increased economic uncertainty since last Autumn continuing to weigh on affordability and buyer sentiment.
The MPA’s latest market forecast, published in February 2025, forecasts modest overall growth across mineral products markets in 2025, supported by major infrastructure projects and a hoped-for pick-up in housebuilding in the year’s second half. However, the outlook is increasingly contingent on both supportive domestic policy action and a more stable economic and policy environment.
“Construction cannot happen without a secure supply of mineral products, yet domestic production faces mounting pressures from both home and abroad,” Mineral Products Association executive chair Chris Leese said.
“Without a clear commitment to supporting UK industry through competitive energy costs, better planning, and a public procurement policy that prioritises domestically produced mineral products like cement and concrete, the risk is that essential mineral extraction and products manufacturing capacity will be lost, just when the country needs it most.
“Government must act now to strengthen the foundations of growth and support an industry that supplies the essential materials underpinning the UK’s ambition to build and grow the economy.”
Questions have also emerged in the global economy. US trade tariffs have resulted in uncertainty, which is expected to impact UK growth prospects, construction activity and the outlook for the supply chain.
While the largely domestic mineral products sector is resilient to direct trade exposure, the MPA states there are real risks that cement imports, already representing nearly a third of the UK market, could rise further as materials originally destined for the US seek new markets.
Global trade disruptions, reduced investor confidence, and renewed inflationary pressures are compounding existing headwinds for construction and mineral products markets. The pipeline of construction projects is likely to remain on hold for longer, delaying progress in
the housing market, large commercial and industrial construction, and infrastructure. At the same time, the potential for a more cautious approach to interest rate cuts risks undermining the housing recovery, which has underpinned recent gains in mortar sales.
Mineral Products Association director of economic affairs Aurelie Delannoy said the figures were impacted by economic uncertainty.
“While there are early signs of improvement in housebuilding, the broader construction pipeline remains fragile. New global risks, particularly the potential impact of US trade tariffs, add further pressures when the UK urgently needs a resilient and competitive domestic supply chain to support the Government’s green growth ambitions.”
The MPA has suggested that the UK Government could act to strengthen the resilience of domestic mineral products production, including supporting energy cost competitiveness, industrial decarbonisation, planning reform, and public procurement policies that support UK industries. Such action is essential to underpin the mineral products sector’s critical role in enabling economic growth, housing delivery and national infrastructure ambitions.
Finning UK and Ireland is the two countries’ largest Caterpillar equipment dealer.
Speaking to Aggregates Business, Finning UK and Ireland extraction and infrastructure manager Mick Knight said demand for quarrying and heavy construction equipment in the UK and Ireland has remained positive since 2023.
“There are multiple factors influencing the current level of demand. This includes a natural cycle of machine replacement, whereby customers are looking to replace ageing assets with some of the latest machines, which will help them increase productivity and lower emissions,” Knight said.
“Tailored finance solutions have allowed customers access to this new equipment, allowing them to invest capital in other areas as opposed to mobile plant equipment.
“The industry has recently seen a slow-down in new infrastructure projects, however there is between £700bn and £900bn currently forecasted to be spent on infrastructure capital investment in the UK from 2025 to 2030 across eight sectors. This is between 2.1 and 2.7 times the amount spent between 2020-2025. On this basis, the aggregates market remains cautiously optimistic on output for the next 12-18 months, with a strong pipeline of work that reflects the UK government’s commitment to kickstarting economic growth.
“It also reflects the formation of the new National Infrastructure and Service Transformation Authority (NISTA), which will support the implementation of the government’s 10-year infrastructure strategy. In addition, the UK government is streamlining the planning process for key strategic projects by removing specific steps and regulations, aiming to speed up infrastructure delivery and potentially reduce costs.”
Knight said Finning UK and Ireland sees a trend in customers insourcing operations at their larger and strategically important quarries.
“This also reflects an increased focus on upskilling workforces to enhance operational capabilities with the aim of improving efficiency, reducing costs and carbon emissions. UK Infrastructure Project Owners (end clients) are devising roadmaps for decarbonisation as the UK moves to achieve 2050 net-zero goals, with interim dates differing by customer,” he said.
“There will be an increased target in CO2 reporting in all phases of construction, including the extraction and handling of raw materials, as well as added scrutiny in procurement, with mandates for low-carbon construction and incentives in contracts to eliminate the most carbon-intensive concrete products.”
Reflecting the focus on sustainability, Knight said that there is increasing demand for Caterpillar rebuild machines, which typically save customers 20-30 per cent of the cost of new machines, allowing capital expenditure to go further whilst enhancing sustainability.
Knight said the CAT XE range of wheeled loaders is also extremely popular and is becoming the preferred option over conventional powershift models when purchasing new machines. They deliver increased fuel efficiency of up to 35 per cent, are up to 10 per cent more productive, and have lower maintenance costs.
“At Finning, we have multiple strategic initiatives in place to help customers address key operating challenges in the quarrying and heavy construction sectors. We focus on driving operational best practices, including employing site optimisation studies to right-size fleets based on current and future production targets,” he said.
“We work with customers to develop a deep understanding of production plant and site restrictions and make informed suggestions to improve site set-ups. Our data-driven insights also help customers focus on specific targets and KPIs, such as tonnes of material moved per litre and driving down cost per tonne of material produced while eliminating waste.
“To enhance productivity, sustainability and cost efficiencies for our customers, we can provide a host of digital tools, such as VisionLink, a cloud-based telemetry platform that monitors asset performance, including idle time and machine health.
“These insights can pinpoint issues with the operating techniques and quickly identify other machine-related issues on sites. The platform links the operator, machine and site, providing real-time reports on onsite operations and monitors other factors such as fuel burn rates and carbon emissions. In addition, Finning and Caterpillar also have the expertise to assist with scoping and managing the charging/electric infrastructure ecosystem.”
Knight said that adopting best practices to link machines, operators, and sites is critical to successfully transitioning new technologies and solutions.
“Our certified training programmes (MPQC accreditation) help develop operator competencies, including our proprietary Eco-Drive training designed specifically for machine operators, and Advanced Eco-Drive training for site supervisors to develop operational awareness and efficiency,” he said.
Irish market forecasts
The Irish Concrete Federation (ICF) is the national representative organisation for the Irish aggregates and concrete products industries. It has 74 members and associate members operating at around 300 locations throughout Ireland. The membership includes publicly listed and family-owned businesses.
ICF chief executive officer Gerry Farrell spoke to Aggregates Business there was hope for the market to replicate last year’s levels in Ireland.
“Last year’s demand for construction materials was slightly disappointing, and we are still unsure where this year is going to go. We are hoping that the market will maintain last year’s level at least, but given the current uncertainty, we are not predicting any significant growth,” he said.
Farrell said that several key factors contributed to the current state of the Irish building materials market.
“If you look at the big sectors that our members sell products into, despite strong growth in indicative housing commencements last year, housing completions actually fell 10 per cent,” he said.
“This was largely due to a fall in apartment construction linked to a rise in interest rates and a perceived lack of return on investment for international investors, mainly due to regulatory constraints in Ireland. There has been some discussion of removing rental caps to encourage investment in new apartment construction, but the government has made no decisions.
“The significant rise in the cost of building materials, energy, and labour is another key factor that has slowed down investment. The construction of one-off houses and housing schemes has remained steady. There is a lack of major infrastructure projects like major road works or projects similar to the new National Children’s Hospital, a huge project in recent years for some of our members based in Dublin.
“Much of our commercial and industrial construction projects have been linked to Ireland’s high presence of US pharmaceutical and IT firms, whose building plans seem to be on hold due to the lack of clarity in the global economy. However, we are hopeful of some increase in domestic agriculture-related building activity, which should help boost demand for materials.”
Farrell said that Irish exports of precast concrete to the UK have remained consistent over the past year.
“Those exports have grown significantly since the 2008 [global] economic crash to a value of up to €200 million from only approximately 15 industry companies with the support of Enterprise Ireland and other state agencies. The new Everton FC stadium recently won an industry award, recognising Irish companies that export products or services off the island of Ireland, reflecting the continued emphasis on export for Irish construction,” he said.
Farrell said Ireland does not currently have a significant recycled aggregates market like the UK.
“We don’t have the volume of construction and demolition waste materials to generate a substantial recycled aggregates business. We estimate that a maximum of five per cent of the total volume of aggregate sales in Ireland is available for recycling from construction and demolition waste,” he said.
“In addition, while a welcome first step, the national end-of-waste criteria for recycled aggregates produced from waste concrete, published just over 12 months ago by the Environmental Protection Agency (EPA), are very restrictive. Recycled aggregates, for example, cannot be used in structural concrete.”
Farrell provided insights into the ICF’s plans to publish an Irish version of The Future Homes Hub’s (FHH) report on ‘Embodied and Whole Life Carbon of Future Homes Standard Options’ for the UK this year.
“We will also be publishing a report before the summer, based on our analysis of the planning system for quarries in Ireland over the last eight years,” he said.
“Our research has shown that the planning system replenishes a little over half of the aggregates used annually, so in effect, we use almost double what we replenish nationally. This is not sustainable.”
In addition, the report will show that the average decision-making time for quarry planning applications was 91 weeks (almost 23 months) over the 2017 – 2024 period. However, by 2023, decision-making timeframes for these cases had increased to 146 months.
“There is an urgent need for a National Policy Statement by the Irish Government to facilitate the long-term sustainable supply of essential aggregate materials. The Policy Statement should explicitly recognise that aggregates are a strategic national resource, essential for the future development of Ireland and fundamental to meeting societal needs.
“This Policy Statement should be further implemented in regional and local planning policies to provide planning authorities with a clear government position on consenting sustainable development of long-term aggregate supply.”
The recently published FHH report presented whole-life carbon data for three different types of construction, testing two homes with walls made from concrete blocks and one using timber.
The MPA welcomed the FHH report and said the findings challenge common assumptions about building materials. For example, the FHH research shows that the whole-life carbon for a new mid-terrace house ranges from 571 to 584kg CO2e/m2 across the various construction specifications, a just two per cent difference between timber and concrete.
The report concluded that the different specifications “have broadly similar upfront and whole life embodied carbon impacts” and there is “no silver bullet solution when it comes to reducing the embodied carbon of new homes”.
The MPA said that many other advantages of concrete, such as fire resistance, durability, longevity, thermal mass and a resilient, local supply chain, along with new advancements in low-carbon concrete, make it a superior choice for building sustainably.
The Future Homes Hub was established to facilitate collaboration within and beyond the new homes sector to help meet the climate and environmental challenges ahead. The new FHH report has been published as a resource for homebuilders and designers navigating the path to net zero.
Malcolm Construction goes big on Cat
Finning UK and Ireland has supplied Malcolm Construction with £1.1 million worth of Cat machinery, making it one of Scotland’s largest construction and contracting companies.
Malcolm Construction, a division of The Malcolm Group, has invested in two Cat 745 three-axle articulated trucks and one Cat 352 excavator from Finning UK and Ireland, the world’s largest dealer of Cat equipment, parts and aftermarket services. This purchase is part of the company’s continued investment in heavy machinery to further enhance efficiency at its Loanhead Quarry.
The productivity, efficiency, and financial benefits of the Cat 745 articulated trucks and the Cat 352 excavator were key to the investment. To showcase the advantages of these machines,
Finning provided the company with a demonstration Cat 745 for a week, and the benefits were immediately clear.
“Being able to demo the Cat 745 for a week was invaluable in validating the numerous benefits of this machine. Thanks to integrated VisionLink technology, we were able to see the actual fuel burn figures of the machine, which came in at an average of 73.2L daily, and 586L total for the week – an impressive figure given the load and rigorous application,” Loanhead managing director Euan Malcolm said.
“With the machine’s higher payload capacity of up to 41 tonnes, you might expect higher average fuel burn, but we found the opposite. The machine’s Eco Mode undeniably helped to optimise our operating costs over the week, at no detriment to the performance of the machine.
“Our machines endure the most demanding applications, which means durability, versatility and stability are a high priority when we are investing in new equipment. The Cat 352 excavator is already proving it is just as efficient as our other Cat machines, and just as robust, handling large tools and heavy loads with ease.”
HD Hyundai CE UK and Ireland makes new appointment
HD Hyundai Construction Equipment Europe has appointed Anthony Hogben as its regional sales manager for the UK and Ireland.
An experienced construction equipment engineer, Hogben brings many years of sales and distribution experience, most recently as a regional sales manager for Manitou UK.
Hogben was originally trained as an engineer by TH White, a construction and agricultural machinery specialist, in southwest England. Following the last recession, he moved into machinery sales and has developed his career across the industry, working with a wide range of equipment in varied industry sectors.
Hogben has been meeting with the company’s dealers across the UK and Ireland since starting with Hyundai Construction Equipment Europe in October 2024.
Hogben’s appointment highlights HD Hyundai Construction Equipment Europe’s commitment to strengthening customer relationships and further expanding the UK and Ireland distribution network.
Hogben said he was focused on strengthening the supply of new equipment and ensuring that customers continue receiving market-leading levels of parts and service supply.
“I’m looking forward to working with partners across the network and building relationships with all our dealers and customers,” he said.
“It is a really exciting time to be joining the company, as HD Hyundai Construction Equipment Europe has a wide range of new and updated equipment coming to the market this year, starting at the Bauma exhibition in April. We have a real opportunity to build the company’s presence in the UK and Ireland markets.”
Liebherr GB makes its mark in UK
Liebherr Great Britain (Liebherr GB) is a prominent name in the UK quarrying machinery market.
Liebherr GB national business development manager Chris McGee said several factors were influencing unit demand in the market.
“Demand has remained constant over the past two to three years. We did see a slight drop off in 2024, early indications show demand returning to pre-COVID levels,” he told Aggregates Business.
“Market uncertainty, inflation and political factors such as tariffs and wage increases play their role. Large ongoing infrastructure projects such as HS2 and Hinkley Point C protect material demand. Demand is likely to increase slightly (over the next 12-18 months), with end users looking to lower their carbon footprint by replacing their ageing fleets with new, more economical products such as battery electric and CVT drivelines (X Power).”
McGee said that machine rebuilds and overhauls have increased over the past few years, with end users seeking ways to reduce costs and lower their carbon footprints.
“Fleet management and an increased focus on utilisation and fuel consumption quickly highlight problematic machines,” he said.
“Our new platform, MyLiebherr, gives customers one portal for all services, from telematics to machine documents and share parts. New technologies such as the battery-electric L507E are available today, and the prototype H2 hydrogen-powered and autonomous wheeled loader is in its testing phase.”
Liebherr Rental national rental sales manager Gareth Blythin said rental of off-highway equipment in the UK has seen a notable uptick in recent years.
“Liebherr Rental has seen an increase in demand over the last two to three years, especially for wheeled loaders, which are up around 15 per cent,” he said.
“Customers are looking for more fuel-efficient machines, especially since the introduction of white diesel. This has provided more rental opportunities for a couple of reasons: With customers running more ageing fleets, there are more breakdowns and hence the requirement for stop-gap machines. The same applies to companies replacing machines; a rental is often used as a stopgap until the new machine arrives.”
Blythin said that Liebherr GB was helping customers address its key challenges in quarrying and heavy construction.
“From a money-saving perspective, Liebherr wheeled loaders are particularly fuel efficient thanks to the dual drive technology,” he said
“Liebherr rental carries a large range of machines with dump trucks, excavators, and wheeled loaders all built to work in the quarrying/aggregates industries and available with full spec and additional safety features, (eg. rear personnel detection on the wheeled loaders). Rental terms also offer flexibility, with both short- and long-term hires available in the UK.”
