AMA Research forecasts 11% decline in bricks, blocks and precast concrete sector due to COVID-19
Published by Emily Thomas,
Deputy Editor
World Cement,
Market growth for the bricks, blocks and precast concrete sector was at a steady 13% between 2015 –2019, however AMA Research are predicting an almost complete reverse from the start of 2020 as the COVID-19 pandemic ensues. The company suggests that we are likely to see an 11% drop in this area but should be expecting a return to growth through H2 of 2020. However, should the downturn in construction be deeper than currently forecast, then the demand levels for bricks, blocks and precast concrete products is likely to fall further, resulting in too optimistic a view presented by the current forecast.
The value of brick imports increased by a rather large 38% in 2018 with Belgium and the Netherlands key source countries. We were still seeing an increase throughout 2019, however again the COVID-19 pandemic will have caused issues with the supply chain.
Demand for concrete blocks is influenced by the health of the housebuilding sector with demand slowing in H2 2019 as completions levels dropped due to many extenuating circumstances such as the turbulent Brexit negotiations followed by the dramatic storms across the nation, closing several sites and causing work to grind to a halt. We have seen this level continue to drop throughout H1 2020 which enforces our predicated decline of 11%.
Precast concrete and cast stone products account for largest share of the market with growth underpinned by move and investments from the larger house builders to more offsite and modular construction methods. However, AMA Research is forecasting that although there is a short-term decline in 2020, it will be followed by overall growth of 18% to 2024 when the market is forecast to be around £2.3 billion.
Read the article online at: https://www.worldcement.com/europe-cis/28052020/ama-research-forecasts-11-decline-in-bricks-blocks-and-precast-concrete-sector-due-to-covid-19/
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