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Construction materials sales weaken in early 2025

Two piles of aggregate on a quarry floor Image: MPA.

The UK construction materials market has made a sluggish start to 2025, according to the latest figures released by the Mineral Products Association (MPA).

Sales of key heavy-side materials including ready-mixed concrete and asphalt fell by 6.3% in the first quarter compared to the previous quarter. Mortar was a rare bright spot, rising 3.8% and marking the fourth consecutive quarter of growth, indicating a tentative recovery in housebuilding activity.

Primary aggregates volumes were mixed, with crushed rock falling 1.5% while sand and gravel saw a 5.9% increase. However, overall demand remains well below historical norms, particularly for ready-mixed concrete, which has dropped to around 3 million cubic metres per quarter — the lowest level in 60 years.

According to the MPA, construction demand is being held back by sluggish economic growth, planning delays, inflationary pressures, and repeated project cancellations. Larger infrastructure schemes such as HS2, Hinkley Point C and Sizewell C continue to support some demand, but a sharp drop in roadbuilding activity has hit asphalt volumes hard — now at their lowest level since 2013, excluding the pandemic.

Six graphs showing construction materials sales weakening in early 2025 Construction materials sales in early 2025. Image: MPA.

“The latest data show that mineral products markets continue to struggle under the weight of heightened economic uncertainty and delayed investment decisions,” said Aurelie Delannoy, director of economic affairs at the MPA. “New global risks, particularly the potential impact of US trade tariffs, add further pressures at a time when the UK urgently needs a resilient and competitive domestic supply chain to support green growth ambitions.”

The MPA is also warning of growing pressure on UK cement producers. With imports already accounting for nearly a third of the UK market, there is concern that cheaper foreign cement — especially from countries like Turkey facing US tariff barriers — could flood the UK market. High UK energy and carbon costs make it increasingly difficult for domestic producers to compete.

“Construction cannot happen without a secure supply of mineral products,” said Chris Leese, executive chair of the MPA. “Yet domestic production faces mounting pressures from both home and abroad. Without a clear commitment to supporting UK industry through competitive energy costs, better planning, and public procurement that prioritises UK-made products, the risk is we lose the capacity needed to deliver national infrastructure and housing ambitions.”

The MPA continues to urge the UK government to take action on energy cost competitiveness, planning reform and support for industrial decarbonisation to protect the mineral products sector’s critical role in enabling growth. The MPA’s latest market forecast suggests modest overall growth in 2025, driven by major infrastructure and a hoped-for pick-up in housebuilding later in the year — but that outlook remains heavily dependent on both policy and economic stability.