Concrete sector makes sustainability surge

Having reshaped to accommodate the downturn in demand, the concrete sector is now set to push on with its sustainability surge. Paul Thompson  focuses on an industry confident it can communicate concrete's credentials.

Cement and concrete works at the Olympic Park development, Stratford, east London. (Image: Andy Drysdale/Rex Features) 

Take a brief look at the latest industry supply data and it appears to be all doom and gloom across the concrete sector.

In common with all building materials the amount of concrete being sold and placed on construction sites has plummeted and suppliers, precasters and contractors are being forced into making big decisions in a bid to hang on to their businesses.

For some the severity and speed of the downturn has proved too much and with figures that indicate a drop in sales of as much as a third during the last 12 months it is hardly surprising.

According to the Mineral Products Association - the recently formed industry body that represents the concrete, quarrying, cement and aggregates industries - 33% less ready mixed concrete was sold by suppliers during the first three months of the year than the same period in 2008.

On closer inspection, these numbers also reveal that for the first six months of the same year demand remained reasonably high, down a little on previous year's but still within touching distance.

Most of that unprecedented slump has hit the industry in the second half of 2008 as the housing market went into freefall and banks withdrew credit despite being pumped full of public money. Even some of the industry's biggest names had difficulty forecasting the severity of the slump.

"We didn't see it being as difficult as it was. Even at the beginning of 2008, demand was still strong but the collapse of the housing and building products market had an immediate effect on business and then the commercial build side gradually eroded away," says Jim Claydon, managing director of Hanson's concrete business.

Hospitals and schools

Even the public money being poured into hospitals and schools and infrastructure work is having little effect on trading conditions he claims.

"The public sector is not having as much of an effect as hoped. Hospitals and schools have been going as planned but looking forward there isn't that much direct spend into the industry.

"We are actively tendering for infrastructure work but there isn't that much about for 2009, although we do anticipate 2010 will be stronger," says Claydon.

The idea of keeping heads down and toughing out another difficult year is one reflected by all other concrete producers, however, there is work out there and sooner rather than later the recession will be over.

It is here where companies need to be ready to take advantage of the upturn when it does come.

"In early 2008 we started the process of reshaping the business.

"As a result of that, it is now stable and performing well and we are able to focus our efforts on pushing ahead with our business improvement plans," says Chris Leese, vice-president of ready mix and mortars at Cemex UK.

"The next 12 months will be very challenging for all sectors of the economy, but as an industry we have to do the best we can to weather the storm.

"Construction activity has not stopped. We continue to need our roads repairing, buildings maintaining and there is still significant demand for construction materials in the UK. One day the recession will be over," he adds.

Of course, anyone who can pinpoint exactly when that will be is likely to be a rich very rich man, but such is the scale and severity of the downturn that there are many who believe we are close to it now.

Optimistic view

With the construction industry reportedly busier now than at any time on the last few months there could be signs for optimism - but then of course if the construction industry doesn't get busier during the summer months then we might all as well pack up and go home.

"It is difficult to call but at the very least we know we are nearer the bottom," says Claydon.

That sentiment may be a small bean of comfort for many, but what is vital for the sector is that it must continue to maintain and improve its share of the market despite the downturn.

A percentage improvement in market share during a lean period will likely translate to bulging order books when the economy does eventually kick back into gear.

Disseminating the advantages of concrete over other construction materials has been a difficult task over the years but there is evidence that designers and architects are finally beginning to recognise its benefits despite the negative publicity it has generated in the past, particularly over its environmental credentials.

"We can't do anything that is beyond our control," says Andrew Minson, executive director at the Concrete Centre, "and we still need to grow market share.

"In recent years, ideas of what sustainability actually means have matured and we have been able to show that the positives of using concrete outweigh the negatives."

By getting in front of architects and designers and talking them through exactly how the use of concrete can benefit the whole-life costs of a building, provide greater inherent fire resistance, boost thermal efficiency and provide greater sound insulation among other benefits, supporters have managed to improve market share and close in on that of concrete's greatest rival, steel, for its share of the lucrative framing market.

The forthcoming implementation of the European design codes are likely to be beneficial to concrete over other framing materials and the Concrete Centre - as has the rest of the sector - has been quick to leap on this renewed interest in the material by providing reams of guidance documents for its use under the Eurocodes.

New guidelines

The rest of the industry has been quick to follow suit with the Architectural Cladding Association publishing new guidelines on the sustainability and use of precast concrete cladding.

There are not many areas of the industry that have not been affected by the renewed interest from clients all across the spectrum.

"People have started to realise the advantages in using concrete.

"There is no one single headline grabbing benefit for concrete's use but it does have the best whole-life performance over a range of requirements and clients are sophisticated enough to recognise that," says Minson.

---

Concrete: a contractor's view

The last thing the industry needs is for the current downturn in work to spell a downturn in health and safety standards.

Despite the trim in margins there is no excuse for trying to recoup that cash by playing Russian Roulette with workers' lives argues Paul Salmon, managing director at concrete specialist contractor Byrne Brothers.

It is imperative that contractors and the wider industry keep up the drive to improve health and safety standards on construction sites.

"I cannot stress enough the importance of maintaining - above all else - our current health and safety standards and hopefully improving on them," he says. "The downturn in work must not have the consequence of increasing injuries on site.

"It is still one of the main priorities of our business - and should be for all businesses - to send each and every one of our employees home safely every evening to their families.

"The effects of the recession cannot alter this in any way."