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Ready-mixed concrete markets expected to increase

Latest BDS market report forecasts annual average growth of around 5% in each of the next three years

READY-mixed concrete markets in Great Britain are expected to increase by around 5% during 2013, heralding the start of a period of steady growth after what has been described as a ‘roller coaster ride’ for the industry in recent years.

Last year saw demand for ready-mixed concrete fall by 8%, cancelling out the improvement which the industry enjoyed in 2011.

 

However, industry marketing consultancy BDS Marketing Research Ltd now expect the ready-mixed concrete industry to enjoy steady increases in the market over the next few years.

Chief consultant Julian Clapp said: ‘The housing market is at last showing signs of improvement. This is expected to be followed by recovery in industrial and commercial building. There are also a number of major infrastructure projects which will come on stream over the next few years.’

BDS are forecasting average annual growth of around 5% in each of the next three years. Nevertheless, by 2016, demand for ready-mixed concrete will still be below 2007 pre-recession levels.

These are some of the conclusions of BDS Marketing’s annual report on the industry entitled: ‘Estimated market shares of ready-mixed concrete companies in Great Britain’, which estimates the market shares of all companies in the industry, by county, regionally and nationally.

As well as a three-year forecast, the BDS report identifies plants and companies that have both closed and opened over the past 12 months. According to BDS, around 70 plants have either opened or closed since the start of 2012.

This is the only published report that lists all companies in the industry. It includes details of 225 businesses that mix concrete at static batching plants as well as a further 200 volumetric companies.

The major company change over the past year has been the formation of Hope Construction Materials, who acquired more than 170 plants from Lafarge Tarmac. This was a pre-requisite laid down by the Competition Commission for the merger between Lafarge and Tarmac to go ahead. The BDS report includes the estimated shares of these companies, both before and after the change of ownership.

The BDS report also includes details of three other significant industry acquisitions made in the last 12 months.

BDS have calculated that Hanson are the largest ready-mixed concrete company in the country, followed by CEMEX. The formation of Hope Construction Materials has resulted in this new company becoming the third largest concrete business.

The consultancy estimates that Hanson are the largest suppliers in southern England and Wales, with CEMEX being the leading company in East Anglia and the North West, and Hope Construction Materials being the largest concrete company in the Midlands and northern England.

Further details contact BDS Marketing.

 

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