Pavestone Comment: Q4 2024
2024 fizzled out with slow paving sales in the last quarter, but prospects for 2025 are already looking up as the pre-season gets off to a flying start.
What goes up, must come down, and after months of hikes, we finally saw a drop in container prices in Q4. With the ceasefire in Israel extending to the Houthi rebels, there is the possibility of a return to shipping lines through the Suez canal, so there may be further decreases in the coming months. This is always difficult to navigate as stock bought at the higher price point still needs to deliver a margin for suppliers and merchants.
Looking ahead, we are proud to be bringing clay paving products to the UK market in Q1 – a deal two years in the making! As well as superior aesthetics, the most notable selling point for clay is its durability; it has a 135-year lifecycle and the colour doesn’t fade over time.
With just five years to go until the 2030 net zero targets need to be met, clay paving fares well from a sustainability point of view too. It’s sourced from mainland Europe where the clay is dredged from lowland areas to prevent flooding so it has an environmental purpose. It has a lower carbon footprint to ship compared to Indian sandstone and porcelain, and it offers a lifetime of use so there’s no need to replace it in 10 years as you might with products which wear over time.
Other products we are predicting will be big in 2025 are wall cladding, which add colour and texture to existing walls, and outdoor kitchens. Consider how branch displays might best showcase these trending products to upsell customers.
While we are seeing an upturn in sales as lower shipping prices and pre-season offers make it an optimal time for merchants to stock up, it’s less clear whether this boost in sales is being driven by consumer demand. The latest NIQ GfK Consumer Confidence Index reveals a -5 point drop in consumer confidence in January, with all metrics recording a fall. Are we bucking the trend, or is a turnaround in fortunes ahead for RMI? Only time will tell.