Weak Start to 2025 for Building Materials Sales Amid Growing Economic Headwinds

The Mineral Products Association (MPA) has highlighted a challenging start to 2025 for the building materials sector, citing growing economic uncertainties and delayed investment decisions. Despite early signs of improvement in housebuilding, the broader construction pipeline remains fragile, according to the latest data.

Market Conditions and Challenges

Aurelie Delannoy, Director of Economic Affairs at the Mineral Products Association, commented on the latest figures: "The mineral products markets continue to struggle under the weight of heightened economic uncertainty and delayed investment decisions. While there are early signs of improvement in housebuilding, the broader construction pipeline remains fragile. New global risks, particularly the potential impact of US trade tariffs, add further pressures at a time when the UK urgently needs a resilient and competitive domestic supply chain to support the Government’s green growth ambitions."

The MPA’s latest market forecast, published in February, points to modest overall growth across mineral products markets in 2025. This growth is expected to be supported by major infrastructure projects and a hoped-for pick-up in housebuilding in the second half of the year. However, the outlook is increasingly contingent on both supportive domestic policy action and a more stable economic and policy environment.

Infrastructure Challenges and Recommendations

Chris Leese, Executive Chair of the Mineral Products Association, emphasized the crucial role of mineral products in construction: "Construction cannot happen without a secure supply of mineral products, yet domestic production faces mounting pressures from both home and abroad. Without a clear commitment to supporting UK industry through competitive energy costs, better planning, and a public procurement policy that prioritizes domestically produced mineral products like cement and concrete, the risk is that essential mineral extraction and products manufacturing capacity will be lost, just when the country needs it most."

Leese urged the Government to take immediate action to strengthen the foundations of growth and support an industry that supplies the essential materials underpinning the UK’s ambition to build and grow the economy. The MPA also called for improved infrastructure planning and construction material supply audits for major projects to ensure that the mineral planning system takes future needs into account.

Conclusion

The Mineral Products Association is advocating for swift policy changes to address the current challenges facing the industry. With the UK's infrastructure strategy and the establishment of the National Infrastructure and Service Transformation Authority (NISTA) providing an opportunity for improvement, the MPA is urging decisive action to boost delivery of transport, energy, and other infrastructure projects. By supporting domestic industry and ensuring a stable supply chain, the UK can better meet its green growth ambitions and sustainably develop its infrastructure.