Economic data from the Mineral Productions Association (MPA) (3) 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 highlighted 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.
‘Data from both the Mineral Products Association (MPA) and the Department for Business and Trade (DBT) highlight an alarming, long-term decline in demand for key construction materials,’ said BCIS chief economist Dr David Crosthwaite.
‘Root causes include persistent constraints on investment in new construction, viability challenges and a lack of momentum in projects where clients and funders have committed to starting on site.
‘Many suppliers and contractors had been hoping for economic and regulatory pressures to ease in the new year. While some progress has been made, particularly by the Building Safety Regulator, the longer-term disruption caused by geopolitical tensions, input cost inflation and client risk aversion presents significant challenges, further weighing on an already weak demand base.
‘It is crucial, in this period of renewed instability, that the government does everything in its power to support and stimulate construction demand. At the same time, clients and contractors must work more collaboratively to ensure cost transparency, set realistic project and programme timelines and maintain robust financial due diligence.’
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