New economic data from the Mineral Productions Association (MPA)(2) indicate that demand for core construction materials is weak with demand for key materials including concrete, aggregates and asphalt declining for the fourth consecutive year in 2025.
MPA insights also exposed a record 27% fall in annual materials sales volumes in the London market last year including a notable downturn in demand for ready-mixed concrete.
‘New data from both the Mineral Products Association (MPA) and the Department for Business and Trade (DBT) highlight an alarming, long-term fall in demand for key construction materials,’ Dr Crosthwaite added.
‘Together, the data echo the deepening demand crisis in construction’s residential market. Developers are stuck. They face decision-making holdups at regulatory and government levels, reduced buyer appetite and high costs from levies and rising building costs. It’s a recipe we’ve seen the result of time and again in delayed starts, site closures and missed housing targets.
‘The greater concern is the long-term damage to domestic supply chains and whether manufacturers will be able to weather demand stagnation. Further reductions in supply chain capacity could be disastrous for national housing and infrastructure targets.
‘How swiftly and how well measures like the government’s renegotiation of Section 106 agreements answer the severity of demand pressures, are of the utmost importance.’
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