Aggregates markets in Great Britain are forecast to get back to the levels seen in 2007 by 2020, according to a new report entitled: ‘The primary aggregates producing industry in Great Britain – Its structure, markets and prospects,’ by BDS Marketing Research.
While currently, demand is nearly 20% lower than 10 years ago, author of the report, Andy Sales, said: “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 aggregates industry represents a market of around £2bn and is key to the government’s plans to boost infrastructure spending.
BDS Marketing Research 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. These have been replaced by increasing sales of crushed rock concreting materials.
Despite the growth in alternative materials, BDS Marketing Research estimates that primary aggregates continue to represent over 70% of the total aggregates market. “We do not expect this to materially change,” said Mr Sales. “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.”
The BDS Marketing Research 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.