Materials firms sound alarm to Rachel Reeves | Construction Enquirer News
Summary
The Mineral Products Association warns of a production crisis in the construction materials sector, urging government action to stimulate demand and prevent long-term damage.
Why It Matters
This article highlights the critical state of the construction materials industry in the UK, emphasizing the potential for deindustrialization and the urgent need for government intervention to sustain production and support economic recovery. The insights provided can inform policymakers and industry stakeholders about the challenges faced and potential solutions.
Key Takeaways
- The construction materials industry is facing historic lows in production and sales.
- The Mineral Products Association calls for government action to stimulate housing demand and infrastructure funding.
- There is a risk of deindustrialization if current market conditions persist.
- Complex regulations are hindering UK firms' competitiveness against European suppliers.
- Immediate policy changes are needed to inspire confidence in the construction sector.
The Mineral Products Association letter states: “Right now, our industry is struggling badly. We need you to act quickly to stimulate construction activity in order to prevent long term damage to the nation’s ability to build.” The MPA has just recorded the fourth consecutive year of a shrinking market for key construction materials leaving sales volumes at historic lows. Concrete volumes remain at the lowest levels since the early 1960s and the MPA said there is “now a clear danger of deindustrialisation in this sector.” It added: “Lacking evidence of meaningful market improvements, in order to protect the long- term viability of our businesses, we are facing the difficult decisions of what to cut,which sites to close, and which roles to make redundant. “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. This would result in a permanent reduction in the ability of the UK to supply itself with essential construction materials, hampering recovery in the short term and growth and investment into the future.” The MPA is urging Reeves to stimulate housing demand, boost infrastructure funding from the public and private sector and help construction with tax cuts. MPA Executive Chair Chris Leese said: “We simply cannot go on like this and frankly the solutions are not that complex – they just require the Chancellor to prioritise growth and take immediate action. Our industry has ...
