UK construction materials industry urges government intervention

Key figures in the UK mineral products industry wrote to Chancellor of the Exchequer Rachel Reeves, urging immediate government intervention to revive the construction sector and warning that prolonged market weakness risked permanent damage to domestic supply capacity, the Mineral Products Association said Feb. 23.

In a joint letter described as "no-nonsense," the heads of the UK's leading construction materials producers said the industry was "struggling badly" and cautioned that without action to stimulate activity, the country could permanently lose capacity to produce cement, concrete, aggregates and asphalt.

The executives highlighted four years of declining sales, with volumes falling to historic lows, according to MPA data.

They said the sustained downturn had raised the risk of significant production cuts.

"There is a real risk that we will have to reduce the industry's production capacity significantly in the face of the prolonged weakness of the economy," the letter stated.

The signatories warned that any closure of production sites would have consequences beyond the minerals sector, affecting supply chains and the broader economy.

A reduction in domestic output would lead to "a permanent reduction in the UK's self-sufficiency in essential construction materials, hampering recovery in the short term and growth and investment into the future," they wrote.

They added that such a scenario would increase the UK's exposure to geopolitical disruptions in the supply of materials critical to defense and energy infrastructure.

MPA Executive Chair Chris Leese said the situation required urgent policy action. "We simply cannot go on like this, and frankly, the solutions are not that complex," he said, adding that the chancellor needed to prioritize growth and act immediately.

Leese also called for a coordinated government effort to implement policies that would restore confidence.

The letter concluded by setting out four measures the industry believes would encourage investment and stimulate growth in what the MPA described as a "dire situation": urgent support for housebuilding; rapid public funding for infrastructure, particularly road maintenance; incentives for private infrastructure investment through a super-deduction; and targeted support to reduce costs across the construction sector.

Platts, part of S&P Global Energy, last assessed CEMDEX Turkey at $53/mt FOB Feb. 19.