After a better-than-expected start to the year, the robust sales seen in Q1 did not continue into Q2, and ready-mixed concrete volumes sank to a historic low. Aggregate sales were lower than expected across the board, and from speaking to our merchant customers, confidence in the market is understandably taking a real hit.

The latest figures from the Mineral Products Association paint a gloomy picture: Q2 ready-mixed concrete volumes down -11.5% quarter-on-quarter, aggregates down -4.4%, and mortar down -2.7%, ending four consecutive quarters of growth. Only Asphalt increased, however the +5.8% rebound offset a larger decline in Q1.

Most predictions for 2025 were betting on a H2 recovery but the current aggregate sales tell a different story. Less concrete sales in H1, mean fewer concrete slabs to build on in H2, suggesting the foundations have not been laid for recovery in the second half.

And the hits keep coming. The Extended Producer Responsibility (EPR) regulations, which require manufacturers to be responsible for the cost of recycling or disposing of their product’s waste packaging, is in force. The legislation is vague, but we risk fines and prosecution for non-compliance, so we’re asking government for more clarity, particularly on how they define waste categories (household incurs PRN – Producers Recovery Note – and EPR fees, commercial is PRN only).

Building manufacturers are not shying away from their responsibilities, and where we can, we are moving away from plastic packaging, but this stealth tax on construction is going to impact us all. We need to voice our concerns collectively to ensure the rules are fit for purpose. Merchants can be part of the solution by providing customer data which indicates whether product packaging is likely to end up in household (DIY customers) or commercial (trade) waste.

The EPR and PRN fees will drive up the price of building products, as we can’t afford to absorb the extra cost, particularly as there’s more rules on the way with the RAM (Recycling Assessment Methodology) framework coming next year.

For all its rhetoric about generating growth in and through the construction industry, real tangible government support for our sector is yet to materialise and it’s hard to see things improving before the end of the year.