Cautious optimism in construction materials markets as recovery takes root, MPA finds

Demand for heavyside materials increased in the final months of 2024, according to new data from the Mineral Products Association (MPA) which is calling on the Government to turn pledges into policies that support growth.

From a very low base, sales volumes of ready-mixed concrete in Great Britain rose by 5.7% in the final quarter of the year (Q4 2024) compared to the previous quarter, while construction aggregates (crushed rock, sand and gravel) saw a modest increase of 0.6%, with mortar volumes climbing by 2.4% in the same period.

The latest MPA figures, based on actual materials supplied, reveal tangible evidence of an early recovery in construction markets. The survey tracks the tonnages sold for aggregates, asphalt, ready-mixed concrete and mortar – materials essential for the foundations and fabric of all new structures.

MPA economists say that results of the survey are grounds for cautious optimism in the mineral products sector, as well as the wider construction industry, as demand begins to improve from historically low levels.

Sales volumes of mortar, which is predominantly used in housebuilding, have now risen for three consecutive quarters, reaching their highest level since Q3 2023. This indicates a slow but steady revival in housebuilding activity during the second half of 2024, mirroring trends in other housing market indicators, including increased mortgage approvals and rising house prices. As we enter 2025, there are signs that a more sustained recovery in housing construction can be expected this year.

Despite these encouraging signals, the MPA data also underscores the severity of the construction slowdown over the past two years and the major challenges facing the £22 billion mineral products industry. For example, annual mortar sales fell by 15% in 2024, dropping below 2 million tonnes – some 28% lower than the 2022 peak of 2.7 million tonnes.

Similarly, ready-mixed concrete, ubiquitous to all types of construction projects, faced a 10.8% annual decline in 2024; reaching its lowest level in over 60 years. Primary aggregates sales declined by 2.6%, with sand and gravel particularly impacted due to weak demand from the struggling ready-mixed concrete market, where it is mostly used.

In contrast, crushed rock held up better, supported by demand from major infrastructure projects, particularly HS2. Meanwhile, asphalt sales fell by 2.7%; affected by delays and cancellations of road schemes and ongoing constraints on local authorities’ budgets for road maintenance.

MPA sales volumes in GB: change on the previous period (seasonally adjusted)

Aurelie Delannoy, Director of Economic Affairs at MPA, said: "The industry has weathered steep losses in demand over the past three years, despite successive governments setting ambitious targets for housing, infrastructure, and public buildings such as schools and hospitals.

"In 2024, every market monitored recorded sales volumes weaker than even the Covid-impacted year of 2020. That is why the recent signs of recovery in the second half of 2024 are particularly welcome.”

MPA forecasts modest growth in mineral product sales in 2025, driven by improving economic conditions and a gradual recovery in the housing market. Major infrastructure projects – including HS2, Hinkley Point C, Sizewell C, and gigafactories, including the £4 billion Agratas plant in Somerset – are also expected to bolster demand for aggregates and ready-mixed concrete.

Regional data from 2024 demonstrates the significant impact individual infrastructure projects can have. For example, while asphalt sales declined in most regions last year, the South West of England recorded a 9.9% rise, driven by the completion of two major road projects, the A30 and A303.

Ahead of the Chancellor’s Spring Statement on 26 March 2025, as well as the government’s 10-year infrastructure strategy and the Comprehensive Spending Review due later this Spring, Delannoy emphasised the need for government action to support industry:

She explained: “The road ahead remains uncertain and peppered with potholes. We are cautiously optimistic about recovery in 2025, but sustained growth depends on a meaningful upturn in housebuilding, clear progress in delivering major infrastructure projects and adequate funding for local road repairs. The government must turn its pro-growth, pro-investment rhetoric into tangible policies that restore business confidence, drive investment, and support jobs.

“While our sector welcomes the government’s renewed focus for planning reforms and infrastructure investment, timely and effective delivery is critical. Unlocking this pipeline would go a long way in providing certainty for businesses and help secure the long-term supply of sustainable minerals and mineral products that are essential to the UK’s built environment."