A difficult Q4 rounded off a tough, albeit stable, year of trading. However, the latest Q4 market figures, published by Mineral Products Association, show that a slow recovery could be on the cards. Quarter-on-quarter, ready-mixed concrete sales volumes were up +5.7% compared to Q3, primary construction aggregates increased +0.6%, and mortar volumes rose +2.4%. Mortar sales, heavily linked to housebuilding, rebounded to their highest level since Q3 2023.

The improvement in cement and aggregate sales can be attributed to a stronger end to 2024 for construction output. This trend could continue if the Government delivers on its promises to the industry. Green-lighting major infrastructure projects such as new runways for Heathrow, Gatwick and Luton airports, a ‘Silicon Valley’ corridor of development between Oxford and Cambridge and the redevelopment of Old Trafford could be big business for cement and aggregate suppliers, merchants and trades.

And this is all before the 1.5 million homes promise. Many people still have doubts about the feasibility of meeting the target in five years, and it was the subject of a lively BMBI debate in October last year.

For us, the biggest concern is around supply chain constraints. The last time we had a significant rise in volumes was just after COVID and within weeks the supply chain had crumbled. The UK only holds about a week’s supply of cement and mortar, and runs at capacity most of the time. We can invest in ramping up production but first need to see a viable strategy addressing concerns around planning, skills shortages and supply chain management.

While we are taking the positives from the government’s drive to build, we need to make sure it’s sustainable. With only five years to 2030, this could be a pivotal year for more sustainable construction. We’re already taking pre-orders of evoZero – the world’s first carbon captured net-zero cement and will soon be announcing its official UK launch date.

For Heidelberg Materials, 2025 will be a pivotal year for our digital transformation plans. Digital tools and AI are helping us to optimise production, improve our business and automate our customer service to free up colleagues to deliver the personal touch. The future is digital!