By Will Soutter
The concrete construction product manufacturing sector in the UK has shown broad cyclical progress in earnings and profits since the mid-2000s, contrary to the building products sector.
Organisations that deal in heavy construction merchandise such as mainly beams, posts, box culverts, blocks, concrete pipes, etc. have the advantage of sustained markets, whereas due to the recession and stringent economic conditions organisations that manufacture merchandise for the downstream building market have seen a reduction in their earnings.
The sector’s current earnings of about 1.5 billion pounds supposedly contribute to about 0.07% of the GDP. The sector is predicted to make good cyclic progress over the five years up to 2017-18. The rate of growth will overtake that of GDP infinitesimally and will be supported by a 3.1% growth in the building sector. The revenue is expected to reach 3.5 billion pounds over the five-year period with 2% yearly growth despite the present low due to the recession.
Anthony Kelly, the IBISWorld industry researcher, opines that only the expenses on major infrastructure ventures such as the Cross rail tunnel and the 2012 London Olympics by way of stadiums and related amenities saved the industry from a cyclical decline similar to the downstream building economy.
The concrete construction products manufacturing sector has five main manufacturers who make up about 30% of the yearly earnings of the sector. However, the sector has a number of small manufacturers who operate in limited areas or only produce certain specific items. Kelly believes that as the raw material and the finished product are quite bulky, a marketer in the sector is bound to function in a limited area.