Growth Opportunities in the UK Construction Materials Sector: A Forecast for 2024-26 from MPA

Growth Opportunities in the UK Construction Materials Sector: A Forecast for 2024-26 from MPA

As we navigate through a time of economic ups and downs, the construction materials industry in the UK is at a turning point, brimming with opportunities for growth and transformation. As a leading specialist recruiter for the construction materials and modular sector in the UK, E3 Recruitment is uniquely positioned to guide companies through the upcoming period of change, helping them capitalise on emerging prospects and navigate potential challenges with confidence.

Economic Resilience and Sector Dynamics

In the midst of a recovering UK economy, the construction materials sector is gearing up for a period of change and expansion. Despite recent hurdles that tested the industry’s strength, there’s a sense of optimism in the air. With housing indicators looking up and buyer demand stabilising, the sector is gearing up for a revival in construction activity, especially in key infrastructure projects and residential developments.

Insights into the Future of the Construction Materials Market

By delving into the forecasts from the Mineral Products Association (MPA), we gain valuable insights into what lies ahead for the construction materials market from 2024 to 2026. Anticipated rebounds in ready-mixed concrete sales volumes and steady growth in primary aggregates demand paint a picture of a sector on the brink of recovery and expansion. With initiatives like the Road Investment Strategy 3 and major infrastructure projects driving demand, there’s a wealth of opportunities for manufacturers.

The detailed mineral products market briefing highlights the following key points:

Asphalt Demand: Asphalt sales volumes have experienced a significant decline, reaching the lowest point in a decade with a 7.5% annual sales decrease in 2024Q1. The outlook for 2024 has been revised to a -2% adjustment due to delays in road projects. A slight pickup of 2% is anticipated in 2025 if road-related work progresses.

Road Projects: Uncertainty surrounds road projects, with a quarter yet to start and some facing legal challenges. Local authorities’ spending on roads is expected to plateau, with a focus on maintenance and repairs. Weakness in housing and non-road construction work may impact asphalt sales in 2024, but a gradual rebound is expected in 2025 and 2026.

Ready-Mixed Concrete: Demand for ready-mixed concrete has declined significantly, with sales at their lowest level in decades. The outlook for 2024 has been downgraded, with a 4% decline expected. A rebound of 2% is projected for 2025 and 2026, contingent on improved construction conditions.

Primary Aggregates: Sales of primary aggregates have decreased, with forecasts indicating a 3% decline in sand & gravel and a 2% decline in crushed rock in 2024. However, growth of 2% is anticipated in 2025 and 2026, driven by a gradual recovery in housebuilding and infrastructure projects.

Mortar: Mortar volumes are expected to fall by 6% in 2024, reflecting challenges in the housing sector. Growth is forecasted to resume in 2025 and 2026, with increases of 6% and 4%, respectively, assuming improvements in borrowing conditions.

Housing Sector: The housing sector faces challenges with tight affordability and slow progress in private housing demand. Public and affordable housing sectors show more resilience. Despite near-term risks, underlying demand for housing remains strong, supporting future growth.

Challenges and Opportunities

While the road ahead looks promising, the construction materials sector isn’t without its challenges. From concerns about housing affordability to project delays and market uncertainties, adapting to change and seizing opportunities in new projects and infrastructure developments will be key to success. Strategic planning and talent acquisition will play a crucial role in ensuring sustained growth and prosperity in the years to come.

What does this mean for talent acquisition in the Construction Materials market?

The forecasted growth in construction activity brings with it a heightened demand for skilled professionals with specialised expertise in areas such as project management, engineering, and sustainable construction practices.

In a sector characterised by market fluctuations and evolving demands, agility is key to staying ahead of the curve. E3 Recruitment prides itself on its ability to adapt quickly to changing market dynamics, ensuring that we can provide you with the right talent at the right time. Our proactive approach to recruitment allows us to anticipate industry trends, regulatory shifts, and technological advancements, enabling us to match candidates with the skills and experience that align with your requirements.

E3 Recruitment: Your Trusted Partner in Building Success

At E3 Recruitment, we understand the unique needs of the construction materials and modular sector. We’re more than just recruiters – we’re here to help you build resilient teams that drive success. Whether you’re looking for project managers, engineers, or other skilled professionals, we’re dedicated to providing the support and expertise you need to capitalise on emerging opportunities and overcome market challenges effectively.

The future of the UK construction materials sector is filled with promise and potential for growth. By teaming up with E3 Recruitment, you can tap into our knowledge and support to navigate the changing market landscape and build a workforce that drives your organisation towards sustainable success.

Get in touch with E3 Recruitment today to discover how we can empower your organisation to thrive in the dynamic and competitive world of construction materials in the UK.

25th June 2024

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