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Heidelberg Materials
Heidelberg Materials is one of the leading global producers of lower carbon construction materials. The business produces aggregates (crushed rock, sand and gravel), ready-mixed concrete, asphalt, cement and cement related materials.
Heidelberg Materials UK is split into five business lines – aggregates, concrete, asphalt and contracting, cement and recycling – which together operate around 300 manufacturing sites and employ over 4,000 people.
Visit www.heidelbergmaterials.co.uk. Follow @hd_materialsUK
Launched in 2015, the award winning monthly Builders Merchant Building Index (BMBI) report is the only reliable measure of repair, maintenance & improvement (RMI) activity in the UK. Filling an important gap, it can be widely used in construction, and by economists, Government, national media, commentators and influencers outside the industry.
Heildelberg Materials Comment: Q2 2026
It’s been another tough quarter for merchants and suppliers alike. While the weather has improved it has done little to rally construction activity, and volumes for bagged cement and aggregates remain historically low.
The Mineral Products Association’s (MPA) latest report shows there was a steep decline in construction demand for mineral products in Q2, with ready-mixed concrete sales down -5.9% quarter-on-quarter, and drops in aggregate (-2.8%) and mortar (-1.8%) volumes too. Asphalt sales were the only silver lining, with a 2% increase compared to Q1, as regional pockets of road maintenance work boosted volumes.
Regionally, the East of England and Scotland are faring better than most as major road, water and energy projects have increased mineral demand. At the other end of the spectrum ready-mixed concrete sales in London have fallen -31% in the last year, and are -51% below 2022, suggesting acute weakness in housing, major commercial and infrastructure developments in the city.
The continuing conflict in Iran is certainly a contributing factor to the downturn. Despite numerous peace deals, there is still a lot of uncertainty in the Middle East region and prices are going up due to the blockade of the Strait of Hormuz. This is impacting consumer confidence, and in turn, demand for new builds. RMI has also been affected but appears to be a little more resilient to outside influences.
Manufacturers too are struggling with cost inflation and many of us have had to introduce surcharges in Q2 to cover, in part, some of the added costs on fuel, energy and plastic packaging. We can’t pass everything on to merchants and our customers, particularly as volumes remain so challenging. We know businesses are having to make hard decisions.
We are all hoping that the appointment of Andy Burnham as Prime Minister provides a period of stability for the UK, and some much-needed stimulus for housebuilding and infrastructure. He’s talking about a new focus on council house building, which is welcome, but we need to see realistic targets being set, and proper consideration for the same problems that thwarted Kier Starmer’s government’s efforts to build 1.5m homes: skills shortages, supply chain issues and consumer engagement.