Profitability

Profitability

State Of The UK Market

The MPA produce a quarterly sales volumes statistics report for our industry in the UK.  We have included some highlights for you below.  For a more detailed summary please see the MPA Economic Market Briefing in the download section of UK News website.

  • Following a comparatively strong catch-up in market demand for mineral products during the spring, seasonally adjusted sales volumes weakened in 2018Q3 for aggregates, RMC, asphalt and mortar.
  • Asphalt sales volumes saw the sharpest decline, down 4.6% in 2018Q3 compared to the previous quarter, followed by mortar (-4%), aggregates (-2%) and RMC (-1.5%).
  • Despite quarterly falls across all materials covered, the volumes of sales in 2018Q3 remained above historical averages (since 2004Q1) for asphalt, aggregates and mortar, but not for RMC.
  • In the first nine months of 2018:
  • Broadly flat markets for asphalt and aggregates compared to the same period in 2017 contrasted with a fall in RMC sales, and an increase in mortar sales.
  • The volume of asphalt sales in GB declined by 0.2% compared to the same period in 2017, driven primarily by falls in the northern parts of the country.
  • Growth in crushed rock sales (1.5%) was offset by a fall in sand & gravel (-1%).
  • The RMC market has continued to weaken since early 2017, with increases in the North West and the South West more than offset by falls particularly in London.
  • The latest ONS data for construction shows that output in the sector grew by 0.4% in the year to Aug-18 compared to the same period in 2017, with growth in new housing, infrastructure, industrial new work and non-housing repair and maintenance (R&M) offset primarily by declines in commercial and public new work. On a 12-month rolling basis, construction output increased by 2%, driven by 7.4% growth in new housing. Link
  • In their latest forecast, the CPA expects construction output to remain flat this year, followed by slow growth in 2019 (0.6%) and 2020 (1.9%). Link