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UK’s MPA and CPA call for greater infrastructure investment

World Cement,


Fall in UK construction materials sales levels

According to the Mineral Products Association (MPA) sales survey results for 2012, sales of aggregates fell by 9% y/y, with ready-mixed concrete and asphalt dropping by 9% and 18%, respectively. Sand and gravel also declined by 12% y/y, with crushed rock decreasing by 7% y/y. Although the full-year figures have not yet been released for cement, sales fell by 11% y/y in 3Q12. Provisional figures for 2012 suggest that total construction output dropped 9% y/y in 2012.

“The MPA figures for 2012 highlight the scale of decline in construction industry markets in 2012. This was the lowest year for aggregates and concrete sales since 1965. We welcomed the increased funding for construction announced in the Autumn Statement but these increases are less than the volume of construction lost in 2012. In these circumstances it is now critical that we see real and accelerated delivery of the huge backlog of outstanding infrastructure projects. There has been enough discussion of the need for more and better infrastructure whether for housing, energy, utility or transport and the financing required. This is all now recognised and accepted. 2013 has to be about delivery, delivery, delivery. MPA maintains its offer to work with all arms of Government to help secure the growth we need to turn the economy around,” stated Nigel Jackson, MPA Chief Executive.

Construction Products Association reacts to GDP figures

According to the Office for National Statistics, UK GDP in 4Q12 fell 0.3% q/q, remaining constant y/y. Although construction sector output increased 0.3% q/q, it fell by 11% y/y in the final quarter of the year. In September – November 2012, total construction output dropped 9.1% y/y with the volume of infrastructure work decreasing by 2.4% y/y.

“The GDP figures released today show that the final quarter of last year was extremely difficult with the construction industry 11% lower then a year ago. Recent figures for new orders, which are a forward looking indicator for the industry, were 7% lower than a year ago and as a consequence the coming year is likely to see further contraction from what is already a very difficult position”, said Construction Products Association Economics Director Noble Francis.

UK Deputy Prime Minister Nick Clegg has suggested that the Government made a mistake in reducing capital spending on infrastructure when it first came to power. The CPA has welcomed Clegg’s admission but Francis advises that, “he must turn this sentiment into real activity if we are not to experience further decline across the industry and the wider economy for many months to come”.

Adapted from press releases by Louise Fordham.

Read the article online at: https://www.worldcement.com/europe-cis/25012013/cement_mpa_cpa_construction_gdp_sales_uk_844/


 

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