Building costs: Input price inflation since the EU referendum has caused cost to increase

The concrete construction product manufacturing industry produces a range of concrete products for construction purposes including precast panels and prestressed box culverts. The construction sector is considered the most important downstream market for concrete product manufacturers; cyclical investment and activity trends in construction markets can stem volatility in industry sales. The industry has been supported by strong expenditure and therefore demand from infrastructure and residential markets. Commercial markets were also buoyant, but faltered following the EU referendum. Over the five years through 2019-2020 industry revenue is expected to grow at a compound annual rate of 4.2%.In the current year, industry revenue is estimated to grow by 3.7% to reach £3 billion...read more.

Industry Statistics & Market Size
Revenue
£3bn
Annual Growth 15-20
4.2%
Forecast Growth 20-25
Profit
Employment
18,814
Businesses
575

Industry Threats & Opportunities

  • Industry demand has largely been supported by the policy backdrop for house building
  • Growth in employment numbers has been limited as industry operators have invested in automation
  • Investments have already tendered lucrative supply chain contracts to the industryc
  • Industry Report - Starting a New Business Chapter

    The Concrete Construction Product Manufacturing industry has moderate barriers to entry. Industry operators produce a diverse range of concrete products that have a wide range of uses for disparate end markets. Prospective entrants tend to target small or niche markets serving the residential sector as small-scale property developers and homeowners typically source concrete products from local suppliers. However, the established market profile and product reputation of existing firms raises barriers to both entry and success at the top end of the market.Major concrete product producers such as Cemex vertically integrate operations across the cement and concrete production value chain. In ...purchase to read more.

    Additional Insights for the Concrete Construction Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Concrete Construction Product Manufacturing Industry are

  • Having contacts within key markets
  • Proximity to key markets
  • Upstream vertical integration (ownership links)
  • IBISWorld analysts also discuss how external factors such as Government capital expenditure and Business confidence index in the Concrete Construction Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Concrete Construction Product Manufacturing Industry?

    Operators in this industry manufacture concrete products for use in construction. This includes prefabricated structural components made of cement, concrete or artificial stone and other precast concrete, cement or artificial stone articles such as tiles, flagstones, bricks, boards and sheets.

    Industry Products
  • Prefabricated structural components
  • Tiles and flagstones
  • Concrete bricks and blocks
  • Industry Activities
  • Concrete floor, wall and roof tile
  • Concrete flagstone
  • Concrete brick and block
  • Concrete post and pole
  • Cement-based building board
  • Railway sleeper
  • Concrete pipe and box culvert
  • Concrete tank, sink and tub
  • Prefabricated concrete panel
  • Concrete beam and girder
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government capital expenditure
  • Business confidence index
  • Demand from commercial building construction
  • Demand from residential building construction
  • Demand from bridge and tunnel construction
  • Demand from railway and underground railway construction
  • Demand from road and motorway construction

  • Current Performance
  • Stronger foundations
  • Limiting growth
  • Cementing sales
  • Chart: Revenue Growth

  • Industry Outlook
  • Aggregate sales
  • Automating operations
  • Technological innovations
  • Table: Concrete Construction Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Concrete Construction Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Commercial Building Construction
  • Residential Building Construction
  • Railway & Underground Railway Construction
  • Bridge & Tunnel Construction
  • Water Main, Sewer System & Related Project Construction
  • Construction Supplies Wholesaling

  • Key Selling Industries
  • Cement Manufacturing
  • Gravel, Sand & Clay Extraction
  • Mining, Quarrying & Construction Machinery Manufacturing

  • Products & Services
  • Prefabricated structural components
  • Tiles and flagstones
  • Concrete bricks and blocks
  • Chart: Concrete Construction Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential construction
  • Infrastructure construction
  • Commercial construction
  • Chart: Major Market Segmentation for the Concrete Construction Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitThe average operating profit margin among UK concrete construction product manufacturers is forecast to be 3.7% in 2019-20. Following the exit of unprofitable firms during a period of post-financial crisis austerity, improving demand conditions eased pressure on operating costs and allowed margins to expand to 9.6% during the base year of the period. Despite the implementation of operational efficiency measures by several industry operators, including Forterra Building Products and Plasmor, margins faltered in the following year owing to an industry-wide hiring spree and a consequential hike in labour costs. However, margins spiked in 2016-17 as downstream construction activity rose, creating a supply deficit as demand outpaced supply and allowing concrete product manufacturers to charge higher prices. Since the EU referendum, margins have been weighed heavily by exchange rate-driven input price inflation. According to the Office for National Statistics, prices for materials and fuels rose by 3.7% in the year through February 2019. WagesPurchasesDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Concrete Construction Product Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Concrete Construction Product Manufacturing Industry

  • Industry Globalization
    Marshalls plc, Forterra Building Products Ltd, Aggregate Industries UK Ltd, Cemex UK Operations Ltd,
  • Table: Marshalls plc - financial performance
  • Table: Forterra Building Products Ltd - financial performance
  • Table: Aggregate Industries UK Ltd - financial performance
  • Table: Cemex UK Operations Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Concrete Construction Product Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Concrete Construction Product Manufacturing Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Culvert
  • A structure that allows water to flow under a road, railroad, trail, or similar obstruction.
  • Precast Concrete
  • Concrete shapes made in a reusable mould or form. The product is cured in a controlled environment and then transported to the construction site.
  • Prefabricated Structural Components
  • Components like footings, foundations and mounts, which are primarily used in the commercial building construction.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Concrete Construction Product Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Concrete Construction Product Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Concrete Construction Product Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Concrete Construction Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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