UK concrete sector led by Careys and Byrne Bros

The UK concrete market has been projected to witness steady growth in the coming years, reaching £3.502 billion by 2017, rising from a value of £3.346 billion recorded in 2012.

Concrete is a composite construction material made primarily with aggregate, cement, and water. There are many formulations of concrete, which provide varied properties, and concrete is the most-used man-made product on the globe.

Concrete is widely used for making architectural structures, foundations, brick/block walls, pavements, bridges/overpasses, motorways/roads, runways, parking structures, dams, pools/reservoirs, pipes, footings for gates, fences and poles and even boats.

In 2012, the UK market for concrete & concrete products is believed to have declined by 2%, following two years of negligible change, and a major 20% reduction in 2009. The UK concrete market is expected to further decline in 2013, and demonstrate little change in 2014.

Firms supplying heavy construction materials for use in the downstream infrastructure markets (notably concrete pipes, blocks, box culverts, posts and beams) have enjoyed generally buoyant demand conditions.

By contrast, firms manufacturing products primarily for use in the downstream housing and commercial building markets have faced a dramatic deterioration in sales accompanying the economic recession, and tight financial market conditions.

Revenue among the UK's 10 biggest concrete frame contractors is, collectively, holding pretty steady, despite the tough economic backdrop.

Most of the big concrete frame contractors appear to have weathered the economic storm surprisingly well, based on their most recent financial results.

Careys tops the table, though the business includes general contracting and house-building among its activities, besides the concrete frame business. Turnover fell 5% to £165.6 million.

The Wembley-based business enjoyed a big jump in profit, to £7.8 million from just £0.8 million in the previous year. The contractor has concentrated on reducing debt, cutting it by £12.3 million to £28.3 million at year end, and by a further 19.1 million since, to a current level of 9.2 million.

Byrne Bros also experienced a small dip in turnover, from £124.6m to £115.6m. The Shard builder saw profit fall 60% to £3.2 million.

For more information on the UK concrete market, see the latest research: UK Concrete Market

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