As rapid decline in construction activity in the UK in 2012 has inflicted a reduction of 9% in sales in aggregates, cement and ready mixed concrete markets.
Hanson, one of the UK’s largest suppliers of construction materials, is to suspend production at several quarries, following a reduction in road repairs that has cut sales of aggregates, including asphalt, to their lowest level since 1965.
The company, which is part of the German group Heidelberg, has already halved its UK workforce, from 8,400 in 2007 to 4,000 this year.
’Heavy-side’ material companies – which produce basic building products, such as concrete – have suffered more than other construction businesses during the downturn, according to a report in the Financial Times. Exports account for less than 1% of their sales as their products are cheap and heavy, making it uneconomical to transport them further than 30 miles from the point of production.
Last week, Interserve’s head of UK construction told Construction News that they should avoid “pulling away” from local economies in the UK and abandoning local suppliers.
“We have built a very strong supply chain over the years and we want to support and maintain them through the tough times, and make sure they are coming through it with us,” Ian Renhard told the magazine.
