Pavestone Comment: Q1 2025

After a flying start to pre-season sales at the end of 2024, the uplift in demand for paving products has continued into Q1, where one of our biggest challenges has been getting the orders on the system fast enough.

As of April, our year-to-date sales were into double digit increases compared to 2024 in a remarkable boom in orders – the like of which we haven’t seen since 2020. Most good landscapers are telling us they are booked up until the end of the year too.

What’s behind the sudden increase in customer demand is unclear but it certainly feels booming. We are enjoying drier weather than last year, and Easter is later, which would encourage people to spend more time in their gardens, but broader RMI market indicators like the GfK Consumer Confidence Index are telling us that people aren’t feeling that positive. April’s expectations for the general economy over the next 12 months was -37 which is 8 points down from March, and 16 points worse than a year ago.

The current increase in RMI demand has unfortunately coincided with the return of shipping issues, and getting enough stock on the ground for our Merchant customers is proving to be challenging. The knock-on effect of Trump’s tariffs has been major port congestion, as Chinese boats bound for America stop in Europe. This means we can’t always guarantee delivery dates as ships are diverting to find a port where they can offload.

Because of the difficulties getting stock into the country, there are some market-wide shortages on mid-high range porcelain and on Indian sandstone. We are getting stock from alternative suppliers to fulfil orders, and we are keeping our pricing stable and prioritising existing customers where possible, but we know some suppliers are capitalising on the shortages with ‘force majeure’ increases.

Looking ahead, we hope to see an easing in supply chain problems as 2025 looks to be a very promising year for the paving sector. Neutral colours like pale grey, cream and greige are in demand, so update your in-branch displays if you haven’t already. Dark grey is out! Accessories like wall cladding and edging sets are also proving popular and are ideal upsell items for outdoor improvement projects.

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