Quarter 3 did not perform as expected, with a loss of momentum and uncertainty over construction demand in the second half of 2022 impacting aggregate sales.

According to the Mineral Products Association, all products other than mortar are forecast to contract this year with asphalt sales volumes likely to fall by 4% compared to last year. Ready-mix concrete (-3%) and aggregate (-7%) volumes are also predicted to decrease in 2022.

Some individual sectors are still performing. Housebuilding and infrastructure are still going strong however the repair, maintenance, and improvement (RMI) sector continues to experience a marked decline.

RMI has always been a robust sector and we have every faith it will bounce back. While the cost-of-living crisis may bring RMI spend to a halt for people with variable mortgage rates and no savings, homeowners who have paid off their mortgages and have money in the bank will be less impacted by interest rate rises.

In fact, there’s lots to be positive about as we move into the final quarter. We know that tradespeople still have full order books and that housebuilders are busy. Supply chain issues have eased off and the milder weather is encouraging building work to continue much later into the year.

Energy prices remain a concern. The Energy Relief Bill was not quite the relief businesses needed as the discount on already high prices doesn’t cover the surcharges which add 10-15% onto baseline costs. It could be a tough winter, with additional cost pressures for everyone.

It’s hard to predict what will happen in Q4, or indeed 2023, which makes setting budgets very tricky. There are so many external factors that impact our industry that we can’t control. Our approach is to focus on what we can influence – delivering good products, good service and taking steps to control our costs and our supply chain wherever we can.