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This report covers: building materials, aggregates, unprocessed stone, unprocessed slate, timber, laminated wood, sawn timber, hardboard, metal sheets, plastic sheets, profiles, Portland cement, clay bricks, clay tiles, concrete blocks, bricks, roofing tiles, paving, plasterboard, ceramic tiles, floor covering, sanitaryware, copper pipe, plastic pipe, ironmongery, nails, fixings, glass, building sand, concreting sand, gravel, crushed rock, coated roadstone, uncoated roadstone, fill, ballast, dense aggregate, lightweight aggregate, aerated concrete, building blocks, ready-mix, ready mixed concrete, RMC, non-refractory clay building bricks, clay bricks, clay roofing tiles, flat glass, sawmill, plane, slate, facing bricks,
Companies covered include: Aggregate Industries, Blue Circle Industries, BPB, Gyproc, Carlite, Artex, Castle Cement, Hanson, Ibstock Brick, Lagarge, Marley, Pilkington, RMC Group, Rugby Group, Tarmac Group,

| Executive Summary | 1 |
| 1. Market Definition | 2 |
| REPORT COVERAGE | 2 |
| MARKET SECTORS | 2 |
| Aggregates | 2 |
| Cement and Concrete | 3 |
| Clay Products | 3 |
| Glass | 4 |
| Metal and Metal Products | 4 |
| Timber and Timber Products | 4 |
| Other Building Materials | 5 |
| MARKET TRENDS | 5 |
| Aggregates | 5 |
| Cement and Concrete | 6 |
| MARKET POSITION | 6 |
| UK | 6 |
| Overseas | 6 |
| Table 1: Construction Output as a percentage of Gross Domestic Fixed Capital Formation ( percent), 2000 | 7 |
| Table 2: Construction Output per Capita in Selected European Countries by Value (euros), 2000 | 7 |
| TRADE ASSOCIATIONS | 8 |
| Association of Building Component Manufacturers | 8 |
| Brick Development Association | 8 |
| British Cement Association | 9 |
| Construction Products Association | 9 |
| Council of European Producers of Materials for Construction | 10 |
| International Glassfibre Reinforced Concrete Association | 11 |
| Quarry Products Association | 11 |
| 2. Market Size | 12 |
| THE TOTAL MARKET | 12 |
| MARKET SECTORS | 13 |
| Aggregates | 13 |
| Sand and Gravel | 13 |
| Table 3: Sales of Sand and Gravel in the UK by Volume (tonnes), 1996-2000 | 13 |
| Crushed Rock | 13 |
| Table 4: Production of Crushed Rock in the UK by Volume (million tonnes), 1996-2000 | 14 |
| Cement and Concrete | 14 |
| Cement | 14 |
| Table 5: Cement Production and Deliveries in the UK by Volume (million tonnes), 1996-2000 | 14 |
| Table 6: The Apparent UK Market for Cementby Value (£m), 1996-2000 | 15 |
| Concrete Products | 15 |
| Table 7: Production of Concrete Products in the UK by Volume (million square metres), 1996-2000 | 15 |
| Table 8: The Apparent UK Market for Concrete Products by Value (£m), 1996-2000 | 16 |
| Ready-Mixed Concrete | 16 |
| Table 9: Ready-Mixed Concrete Production in the UK by Volume (million cubic metres), 1996-2000 | 17 |
| Table 10: The Apparent UK Market for Ready-Mixed Concreteby Value (£m), 1996-2000 | 17 |
| Clay Products | 18 |
| Bricks | 18 |
| Table 11: The Apparent UK Market for Non-Refractory Clay Building Bricks by Value (£m), 1996-2000 | 18 |
| Table 12: Brick Production and Deliveries in Great Britain by Volume (million bricks), 1996-2000 | 18 |
| Clay Tiles | 19 |
| Table 13: The Apparent UK Market for Non-Refractory Clay Roofing Tiles by Value (£m), 1995-2000 | 19 |
| Glass | 19 |
| Table 14: The Apparent UK Market for Flat Glass Products by Value (£m), 1996-2000 | 20 |
| Metal and Metal Products | 20 |
| Table 15: The Apparent UK Market for Builders Carpentry and Joinery of Metal by Value (£000), 1996-2000 | 20 |
| Timber and Timber Products | 21 |
| Table 16: The Apparent UK Market for Sawmilling and Planing of Wood by Value (£m), 1996-2000 | 21 |
| Other Building Materials | 21 |
| Slate | 21 |
| Table 17: Slate Production in Great Britain by Volume (tonnes), 1996-2000 | 22 |
| OVERSEAS TRADE | 22 |
| Table 18: Imports and Exports of Building Materials at Current Prices (£m), 1996-2000 | 22 |
| Table 19: Imports and Exports of Selected Building Materials at Current Prices (£m), 1996-2000 | 24 |
| 3. Industry Background | 25 |
| Recent History | 25 |
| Table 20: Production of Selected Building Materials in Great Britain (million, 000 square metres, 000 cubic metres and 000 tonnes), 1988-1999 | 25 |
| NUMBER OF COMPANIES | 26 |
| Table 21: Number of VAT-Based Manufacturers of Bricks, Tiles and Construction Products Baked in Clay by Turnover Sizeband (£000), 2000 | 27 |
| Table 22: Number of VAT-Based Enterprises Manufacturing Cement, Concrete Products and Ready-Mixed Concrete by Turnover Sizeband (£000), 2000 | 28 |
| Table 23: Number of VAT-Based Manufacturers of Builders Carpentry and Joinery of Metal by Turnover Sizeband (£000), 2000 | 29 |
| Table 24: Number of VAT-Based Manufacturers of Builders Wares Made of Plastic by Turnover Sizeband (£000), 2000 | 29 |
| Table 25: Number of VAT-Based Manufacturers of Builders Carpentry and Joinery by Turnover Sizeband (£000), 2000 | 30 |
| EMPLOYMENT | 30 |
| Table 26: Number of VAT-Based Local Units Manufacturing Bricks, Tiles and Construction Products Baked in Clay by Number of Employees, 2000 | 31 |
| Table 27: Number of VAT-Based Local Units Manufacturing Cement, Concrete Products and Ready-Mixed Concrete by Number of Employees, 2000 | 32 |
| Table 28: Number of VAT-Based Local Units Manufacturing Builders Carpentry and Joinery of Metal by Number of Employees, 2000 | 33 |
| Table 29: Number of VAT-Based Local Units Manufacturing Builders Wares Made of Plastic by Number of Employees, 2000 | 33 |
| Table 30: Number of VAT-Based Local Units Manufacturing Builders Carpentry and Joinery by Number of Employees, 2000 | 34 |
| REGIONAL VARIATIONS IN THE MARKETPLACE | 34 |
| Table 31: Production of Selected Building Materials by Region (000 units, 000 tonnes and 000 square metres), 1999 | 35 |
| DISTRIBUTION | 35 |
| HOW ROBUST IS THE MARKET? | 36 |
| LEGISLATION | 36 |
| The Aggregates Tax | 36 |
| Climate Change Levy | 36 |
| 4. Competitor Analysis | 37 |
| THE MARKETPLACE | 37 |
| Table 32: Major UK Building Material Companies by Turnover (£m), 1999/2000 | 37 |
| MARKET LEADERS | 38 |
| Aggregate Industries PLC | 38 |
| The UK | 38 |
| The US | 39 |
| Blue Circle Industries PLC | 39 |
| Table 33: Blue Circle PLC Turnover by Sector (£m), 1999 | 40 |
| Table 34: Blue Circle PLC Turnover by Global Region (£m), 1999 | 41 |
| BPB PLC | 42 |
| Table 35: BPB PLC Turnover by Product Sector (£m), 2000 | 42 |
| Table 36: BPB PLC Turnover by Global Region by Product Sector (£m), 2000 | 43 |
| Castle Cement Ltd | 44 |
| Hanson PLC | 44 |
| Hanson Quarry Products Europe Ltd | 45 |
| Hanson Bricks Europe | 45 |
| Table 37: Hanson PLC Turnover by Business Group (£m), 1999 | 46 |
| Table 38: Hanson PLC Turnover by Global Region (£m), 1999 | 46 |
| Ibstock Brick Ltd | 47 |
| Table 39: Ibstock Brick Ltd Turnover by Product Area (million euros), 1999 | 48 |
| Table 40: Ibstock Brick Ltd Turnover by Global Region (million euros), 1999 | 49 |
| Lafarge SA | 49 |
| Aggregates and Concrete | 50 |
| Roofing | 50 |
| Table 41: Lafarge SA Turnover by Product Area (million euros), 2000 | 50 |
| Table 42: Lafarge SA Turnover by Global Region (million euros), 1999 | 51 |
| Marley Ltd | 52 |
| Table 43: Etex Group Turnover by Product Area ( percent), 2000 | 52 |
| Table 44: Etex Group Turnover by Global Region ( percent), 2000 | 53 |
| Pilkington PLC | 53 |
| Table 45: Pilkington PLC Turnover Breakdown (£m), Year Ending March 2000 | 55 |
| Table 46: Pilkington PLC Continuing Operations by Product Area (£m), Year Ending March 2000 | 55 |
| Table 47: Pilkington PLC Turnover by Global Region (£m), Year Ending March 2000 | 56 |
| RMC Group PLC | 57 |
| Table 48: RMC Group PLC Turnover by Sector (£m), 1999 | 58 |
| Table 49: RMC Group PLC Turnover by Global Region (£m), 1999 | 58 |
| The Rugby Group Ltd | 59 |
| Tarmac Group Ltd | 59 |
| OUTSIDE SUPPLIERS | 61 |
| 5. Strengths, Weaknesses, Opportunities and Threats | 63 |
| STRENGTHS | 63 |
| WEAKNESSES | 63 |
| OPPORTUNITIES | 63 |
| THREATS | 64 |
| 6. Buying Behaviour | 65 |
| CONSTRUCTION INDUSTRY DEMAND | 65 |
| Table 50: UK Construction Output at Current Prices (£m), 1995-2000 | 65 |
| The Housing Market | 66 |
| Table 51: New Housing and Housing Repair and Maintenance at Current Prices (£m), 1995-2000 | 67 |
| Starts and Completions | 67 |
| Table 52: Number of Housing Starts in the UK by Sector, 1996-2000 | 68 |
| Table 53: Number of Housing Completions in the UK by Sector, 1996-2000 | 69 |
| MATERIAL DELIVERIES AND STOCKS | 69 |
| Table 54: Deliveries and Stocks of UK Building Materials (million tonnes, million square metres, 000 tonnes and billion), 1995-2000 | 69 |
| CUSTOMER BASE | 70 |
| Table 55: Private Contractors Total Employment by Type of Firm, 1999 | 71 |
| Table 56: Number of Private Contractors in Great Britain by Number of Employees (number of firms), 1995-2000 | 72 |
| Table 57: Number of UK Construction Enterprises by Turnover Size (£000 and number), 1999 | 73 |
| 7. Current Issues | 74 |
| SUSTAINABLE CONSTRUCTION | 74 |
| RESEARCH AND DEVELOPMENT | 74 |
| PLANNING PERMISSION | 74 |
| E-COMMERCE | 75 |
| QUALITY MARK SCHEME | 75 |
| CLIMATE CHANGE EFFECT ON PROPERTY | 75 |
| CORPORATE ACTIVITY | 76 |
| 8. The Global Market | 77 |
| GLOBAL OVERVIEW | 77 |
| Table 58: Cement Production in Selected Countries of the World (000 tonnes), 1998 | 77 |
| Europe | 78 |
| Table 59: Construction Industry Growth Rates in the Countries of the EU ( percent), 1995-1999 | 79 |
| Table 60: Construction Industry Growth Rates in Other Selected European Countries, 1995-1999 | 80 |
| THE AMERICAS | 80 |
| 9. Forecasts | 82 |
| ECONOMIC FACTORS | 82 |
| Table 61: Growth in Construction Activity and Gross Domestic Product ( percent), 1960s-1990s | 82 |
| FUTURE TRENDS | 83 |
| Prefabricated Buildings | 83 |
| Consolidation | 83 |
| Environmental Issues | 83 |
| Partnering | 83 |
| FORECASTS 2001 TO 2005 | 83 |
| Construction Industry Output | 83 |
| Table 62: Forecast Construction Industry Output at Constant 1995 Prices (£m), 2001-2005 | 84 |
| Figure 1: Construction Industry Output Forecasts at Constant 1995 Prices (£m), 2001-2005 | 85 |
| New Work | 85 |
| Housing | 85 |
| Infrastructure | 86 |
| Non-Residential | 86 |
| Repair and Maintenance | 87 |
| Housing | 87 |
| 10. Company Profiles | 88 |
| Blue Circle Industries PLC | 89 |
| BPB PLC | 91 |
| Hanson PLC | 93 |
| Ibstock Brick Ltd | 95 |
| Marley Ltd | 97 |
| Pilkington PLC | 99 |
| RMC Group PLC | 101 |
| 11. Further Sources | 103 |
| Associations | 103 |
| Periodicals | 104 |
| Directories | 106 |
| General Sources | 106 |
| Bonnier Information Sources | 107 |
| Government Publications | 109 |
| Other Sources | 109 |
| Key Note Research | 111 |
| The Key Note Range of Reports | 112 |
This report analyses the UK building materials market, detailing a range of raw materials, semi-manufactured materials, and products and components. Emphasis is placed on basic materials such as aggregates, cement and concrete, clay products, glass, metal and timber.
Market and production data are given for each category, along with statistical data on overseas trade. Overall, the UK imports more building materials than it exports, the deficit in 1999 being £2.2bn, a figure which is expected to have fallen during 2000.
The UK building materials market experienced difficulties as a result of the economic recession in the early 1990s and, for most products, output has not yet reached the levels of 1990. This has led to extensive restructuring, and the industry is now dominated by around ten large companies. Overseas companies have made major acquisitions in the UK, examples being Castle Cement Ltd (Heidelberger Zement of Germany), Ibstock Brick Ltd (CRH of the Republic of Ireland), Marley Ltd (Etex Group of Belgium) and Redland Roofing Systems Ltd (Lafarge of France). Saint-Gobain of France now dominates the UK builders' merchant market, as well as being a major glass producer. Lafarge is renewing its takeover of Blue Circle. The global building materials industry is becoming more concentrated and the UK is following this trend.
Key issues in the industry include the Aggregates Tax, the Climate Change Levy and energy/environmental issues generally. The Government is encouraging more partnering in the construction industry, and a quality mark scheme has been introduced.
At constant 1995 prices, the UK construction industry is forecast to grow by 12.1 percent between 2001 and 2005.
Text © 2001 Key Note
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Last updated by Alphonso Spinelli 18th May 2001