While we were hopeful of a lift in demand in Q3, the market slowed again and we have seen a notable flattening in volumes for cement and aggregate products.

The latest market figures, published by Mineral Products Association, show modest growth for Q3 compared to Q2 however year-to-date sales volumes are lagging 2023 levels, with ready-mixed concrete (-14.1%), sand & gravel (-10.5%), and mortar (-20.1%) significantly down. Sales of asphalt and crushed rock also declined, and volumes for all markets remain well below historic levels.

The cause of market stagnation could be the continuing wet weather, which has blighted construction projects, but also caution from businesses and consumers, who held back on spending until the Autumn budget was delivered.

For cement and aggregates suppliers the budget provided much-needed assurances about the Government’s commitment to the 1.5 million homes target, with the Chancellor investing £5billion in measures to boost housing supply over the next five years. This is very much welcomed by the industry, and we are happy to gear up to meet a level of housebuilding which hasn’t been seen since 1977/78, but we need more details about how this is going to happen to commit our own investments.

To do this, we’d welcome engagement from the government so we can deliver a joined up and realistic plan to meet housing targets and deliver the infrastructure which will be needed for those new homes – such as roads, schools, shops and GP’s surgeries. We don’t envisage material shortages, but if increases in orders aren’t planned and activity spikes, it will impact the supply chain. And where are the skilled workers coming from to build these houses?

This unprecedented level of development must also be sustainable. At the end of October, we hosted our latest Talk About Sustainability event and introduced evoZero – the world’s first carbon captured net-zero cement – which will soon be available in the UK. It’s part of our £1billion investment in 20 sites around the world to develop low carbon and circular products.

Without careful planning and industry engagement, the Chancellor’s lifeline for housebuilding could be a very costly white elephant.