A government-funded report, Collation of the Results of the 2023 Aggregate Minerals Survey for Great Britain, shows that supplies of aggregate for construction are on a downward trend
The report on UK aggregate supply was undertaken by the British Geological Survey, the Ministry of Housing, Communities, and Local Government, the Welsh Government, and the Scottish Government.
It highlights that action will be needed on supplies if the 1.5m new homes target is to be met.
Aggregate reserves in the UK have fallen by 46%
Over a period of 22 years, between 2001 and 2023, aggregate reserves plummeted by 46% – nearly halving.
This has caused concern for the aggregate sector in the UK, majorly represented by the Minerals Products Association (MPA).
Mark Russell, MPA Executive Director for Mineral Resources, said: “Aggregate Minerals surveys are a vital part of the Managed Aggregate Supply System. Failure to respond to the findings of AM2023 would create a serious and costly risk not just to the minerals sector but also to the construction industry and the wider national economy, especially given that up to half of all aggregates are procured, directly and indirectly, by the Government.
“As it stands, areas such as the South East of England rely heavily on imports of materials from other regions in the country. The long-term planning for these supplies and the transport and infrastructure needed to deliver them, is vital to economic development.
“Britain is blessed with a diverse geology and while we understand the Government’s focus on ‘critical’ minerals over recent years, it has undoubtedly taken its finger off the pulse regarding the bread-and-butter minerals that the economy, and in particular the construction sector, relies upon. We hope the Government will heed the message from the AM2023 report, that the decline in permitted reserves must be urgently addressed to support investment in UK plc.”
Concrete is facing major issues
Aggregate is a vital part in creating concrete, and is currently facing a crisis point in the UK, as reported by the MPA in August.
Their latest figures show that concrete volumes of actual market sales have plummeted to levels not seen since 1963.
Confidence in the concrete sector was already at a low, and the MPA report only worsened this, as concrete producers at the time faced a lack of new infrastructure projects, slow investment decisions, high costs, and slow regulatory processes.
Even large projects such as HS2 were not giving a large boost, as the HS2 ‘reset’ took its toll on concrete sales.
At the time, MPA executive chair, Chris Leese, added: “Many of our members are telling us that the current trading conditions are the most difficult they have ever experienced, including the 2007–08 financial crisis, while in concrete the data shows it’s the worst in a lifetime with no signs of recovery.
“The underlying problem is a total lack of business confidence , leading to a lack of investment required to kickstart activity. The mineral products industry literally provides the foundations for the whole economy, employing 80,000 hard-working people in high-value, high-productivity jobs across the country, but in the current climate, our members will have no option other than to mothball capacity and rationalise their businesses.
“Construction is a vital force for growth in the UK economy, and these sales figures are a clear indicator that action is required. We need action now to unlock stalled projects, back the businesses that will build them, and break out of this cycle of weak growth and high costs. Our members are not only ready to deliver; they are also increasingly impatient for the right conditions that would create the opportunity to do so.”
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