Building block companies gearing up for better times

Following recent improvements in demand, building block companies in Great Britain are investing in new plant. In its latest report on the sector, BDS Marketing Research has identified H+H, Collier, Skene, Tarmac, Newlay Concrete and Armstrong, amongst others, as investing in additional block capacity. These are some of the conclusions of the BDS annual report on the industry, entitled ‘Estimated market shares of building block companies in Great Britain’.

‘Block production increased by 5% in 2015, and we expect a further 7% rise in 2016’,
said Andy Sales, author of the report. ‘We are also expecting continued growth over
the next few years, although at lower levels than those seen recently’.

The BDS report estimates the outputs of all aggregate and aircrete block plants in
Great Britain, which now total nearly 100 plants. These are operated by around 50
companies. It also provides details of changes in plant coverage and other trends, and
provides a three year industry forecast.

The other headline change identified by BDS is that Forterra has now moved up to be
the second largest block producer in the country. This follows the company’s flotation
on the London Stock Exchange during 2016.

BDS has identified Tarmac, Forterra, Plasmor, H&H and Armstrong as the five
largest companies in the industry. Together, the consultancy estimates that these businesses represent over half of the market.

Despite encouraging signs within the industry, BDS provides a note of caution. Whilst
the market is back to 2008 levels, it still continues over 20% below the production
levels seen at the start of the last decade.

The consultancy believes that block companies will do well to see production in 2020 back to the level achieved in 2000.