It was a comparatively quiet start to 2023 with marginal economic growth, a slowdown in construction and subdued aggregate demand.

Low consumer confidence and higher mortgage rates affected housebuilders’ expectations, and some of the largest sharply pegged back their forward build programmes, and reduced housebuilding starts which reduced heavy aggregate volumes. Housebuilding was also affected by the first quarter’s cold and wet weather. Inflation impacted the delivery of infrastructure works, with major projects like HS2 being delayed. Wages and material costs continue to cause issues across the board.

Our challenges don’t stop at cost pressures. Sustainability is our biggest challenge by far. Changes to the extended producer responsibility for packaging rules means more businesses now need to comply, undoubtedly leading to a sharp increase in packaging costs.

Cement is an energy intensive manufacturing business, and we have a way to go to decarbonise our operations, but our efforts are being noticed: Hanson recently scooped the Caring for the Environment award from the Worshipful Company of Builders Merchants and we shared our progress and what we’ve learned on our journey at our ‘Let’s Talk Sustainability’ online event in April.

There is also better news afoot. According to the Mineral Products Association, there was a rebound in Q1 sales after the sharp losses seen in the second half of 2022. Primary aggregates sales stabilised (+3.3%), while asphalt (+1.8%) returned to quarter-on-quarter growth after three consecutive declines. Ready-mixed concrete sales grew (+9.8%) and mortar (+6.0%) sales also picked up after a poor end to 2022.

The Office of Budget Responsibility (OBR) remains upbeat about the outlook for the UK, predicting growth from the second half of 2023. The general feeling in the industry is one of optimism, as better weather ushers in a boost in sales and the ‘green shoots’ of change.