It has been a quieter than expected start to the year with the continued inclement weather, market uncertainty and low demand for RMI all impacting cement and aggregates demand in Q1

The latest market figures, published by Mineral Products Association, show mortar sales are at their lowest since 2014 (excluding Q2 2020), declining -27.5% between Q2 2022 and Q1 2024. Ready mixed concrete has plummeted to historically low levels, down -5.7% quarter-on-quarter. Demand for asphalt (-2.6%) and mortar (-2.7%) also declined compared to Q4 2023, while primary aggregates was the only subcategory to grow (+1.1%).

From conversations with customers, it’s evident everyone’s margins are under pressure. Low construction demand means merchants are competing for the same work, and as suppliers, we are facing increased costs that we are reluctant to pass on. The Government says inflation is falling, but it’s not being felt by consumers and prices still seem to be climbing.

That said, merchants are also telling us that when the sun comes out, footfall into branches increases and contractors say their order books are starting to fill up again. A bounce-back is surely on the horizon. Expect Q2 sales to fly once the rain clouds in the sky – and over the economy – clear.

Aside from negotiating the rapidly changing merchant landscape, our focus for Q1 has been on our new packaging launching in Q2. It includes Heidelberg Materials-branded packaging for bagged product, back boards, pallet wraps, counter mats, pocket guides and more. We waited until our Hanson packaging had been used to launch our new branding to minimise waste.

Waste is a hot topic for 2024. While the new extended producer responsibility regulations have been deferred until October 2025, many companies will have to start collating data this year about their packaging and consider how they can support national recycling and waste-reduction targets.

Reducing our impact on the environment is something we are passionate about. For the second year in a row, we were awarded the Worshipful Company of Builders Merchants’ Caring for the Environment award in March for our innovative and proactive approach to sustainability, biodiversity, carbon and waste reduction, and community engagement.