London ready-mix sales dive 32% amid housing slump

New figures from the Mineral Merchandise Affiliation (MPA) paint a grim image of the heavyside market, with gross sales of building supplies caught at “disaster ranges” after 4 straight years of decline.

The MPA’s newest third-quarter returns present the development sector on the ropes, with fragile exercise, mounting job losses and capability being stripped from the availability chain.

Throughout the nation, ready-mix volumes dropped 12% year-on-year, persevering with a downward development that has seen gross sales fall in seven of the previous eight years.

London was the toughest hit, with volumes plunging 32% over the previous yr as builders battle a stagnant housing market and planning bottlenecks for tall buildings below the BSR’s Gateway 2 regime.

The MPA mentioned the slowdown had been made worse by weak business exercise and delays to main infrastructure jobs, with solely restricted lifelines from ongoing public-sector schemes.

Sand and gravel gross sales dropped 3% within the third quarter, asphalt edged up 2.5% however remained beneath final yr’s ranges, and mortar volumes rose simply 1% — nonetheless nearly 30% beneath pre-2023 output after two years of steep decline.

Even giant infrastructure initiatives have misplaced momentum following the HS2 reset and the scrapping of 9 main highway schemes, slashing demand for key supplies.

The MPA warned that many producers have been pressured to mothball websites, reduce capability and shed expert staff simply to remain afloat.

MPA govt chair Chris Leese mentioned: “Bulletins about infrastructure and planning are all effectively and good, however for now they continue to be guarantees of ‘jam tomorrow’.

“With out pressing motion that ends in work on the bottom now, the foundations of future supply — funding, capability and expert labour — might not be there when the nation wants them.”

In its Autumn Finances submission to the Chancellor, the MPA is asking for a bundle of pro-growth measures. These embody a brand new super-deduction for funding in plant and equipment, quicker supply of accepted infrastructure initiatives, and a housing stimulus to get stalled developments shifting.

The affiliation can also be pushing for reduction from excessive power prices, and a extra strategic use of public procurement to favour UK-made supplies and shield jobs.

The MPA warned that until the Authorities acts shortly, the extended weak point in supplies demand will drain funding and abilities from the business, threatening the UK’s capability to ship future housing and infrastructure programmes.