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UK
Manufacturers Sales of Precast Concrete Building Products
by
Value (£ Million MSP) 2006 -2013
While the total market
for precast concrete products is estimated at over £2 billion in
2008, this figure includes sales from products outside the scope of
this report.
Within AMA’s report, the
market is valued at around £1.3 billion.This report identifies and
quantifies specific products within the broad categories of precast
concrete production and includes dense, lightweight and aerated concrete
blocks, precast concrete tiles (excluding flagstones), precast cladding
and structural products for residential, commercial and industrial
buildings and precast concrete for building or civil engineering.
As the table above
illustrates, the precast industry is currently experiencing the effects
of a severe decline in new housebuilding, which is impacting heavily on
some manufacturers. For precast manufacturers who are heavily dependent
on new housebuilding, a decline in sales of between 20%-30% since Q1 2008
is not uncommon. However, many companies supplying to sectors such as
education, health and prisons have achieved an increase in sales in 2008,
which has meant that the overall decline in the precast industry is
estimated at around 15% in 2008.
Precast structural products,
including flooring, stairs, balconies, pods, crosswall panels,
foundations etc are a strong growth sector, reflecting the switch to
offsite production. Together with pipes, this sector is worth around
£700m and while short term prospects are not good, recovery in the market
is anticipated in the medium term.
Opportunities for precast
concrete products in the short and medium term are likely to come
increasingly from the non domestic sectors, although the affordable
housing sector will offer some opportunities in an otherwise depressed
housing market. Pre-cast block producers will be one of the worst
affected by the current downturn in the housing market due to their high
level of dependence on housebuilding where output will almost certainly
continue to decline in 2009. In addition, if the share of the
housebuilding market taken by multi-storey apartments continues to
increase, this could constrain further demand for foundation blocks and
concrete roof tiles, although this expanding market could provide growth
opportunities in other products for manufacturers and suppliers
Overall non-domestic output
is currently forecast to decline by around 11% between 2008-10, though
this figure reflects major variations in sector performance. In the
medium-term, total non-domestic output is expected to begin a modest
recovery in 2011, with moderate annual rates of growth currently forecast
to 2013. The key sectors which are likely to experience significant
decline are offices, industrial and retail, though these will be
partially offset by anticipated growth in education, infrastructure and
health – though these ‘growth’ sectors are dependent on funding streams
from Government and PFI sources being maintained. The Olympic Games
development programme offers some light in the current gloom for precast
concrete products such as cladding, flooring etc. |
