Andy Sales of BDS Marketing Research joined us for our IQ Academy Lunch and Learn session for December, concluding the 2018 webinar series. The session took a look at a market-based view of the aggregates industry, covering areas which included historical trends in the marketplace, current health of the industry, leading producers and how they have evolved, routes to market and key industry issues including the planning process. You can find out more about the IQ Academy and our latest upcoming webinars at www.quarrying.org

2. Uncover more at quarrying.org/iq-events

3. Upcoming branch events
Derbyshire 17th January CPD Event Geotechnical Awareness by Stuart Rae of Tarmac
12.00pm at Buxton RFC
Lancashire 15th January TBC
Northern Ireland 14th January Technical Evening - Management of Dust & Health Surveillance
North Wales 29th January Pumping by Harvinder Bhabra of Weir Minerals
Scottish 16th January Joint Meeting with IA, Stirling - Aberdeen Western Peripheral Route Project
South Wales 9th January Technical Evening
West of England 14th January AGM and Dinner at the Doubletree Hilton North Bristol. Speaker:
Sarah J Landen from Bristol Airport, Past, Present and Future of Bristol Airport
Yorkshire 8th January Technical Evening - Ariel Drone Technology for Quarries, Tim Wright of Ocuair
Branch contact details are available at quarrying.org

4. BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk
The Aggregates Industry – A Market Perspective
Andy Sales – Research Director
BDS Marketing Research (QMJ) Ltd

5. The Aggregates Industry – A Market Perspective
• Market trends since 2000
• Current picture
• Leading producers and how they have evolved
• Added value products
• Aggregates reserves
• End-use for aggregates, rmx and asphalt
• Recycled and secondary aggregates
• Key industry issues
• Market prospects
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

6. Sand and gravel and crushed rock since 2000
(2000=100)
40
50
60
70
80
90
100
110
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Crushed Rock
Sand & Gravel (L/w)
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

7. BDS estimates of aggregate demand (2017)
Total Aggregates,
GB, 255 mt
Crushed rock
120 mt
Sand &Gravel
65 mt
Recycled/Secondary
Aggregates
70mt
Primary Aggregates
185 mt
Hardstone,
45 mt
Limestone
65 mt
Sandstone
10 mt
Land won
sand & gravel
50mt
Marine won
sand & gravel
15 mt
Secondary
aggregates
10 mt
Recycled
aggregates
60 mt
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

8. BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

9. Regional trends in markets – to Q3 2018
Crushed Rock
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
NW NE YH WA WM SW GB EM SC
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

10. Regional trends in markets – to Q3 2018
Sand & Gravel
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
YH NW SE EE GB WM EM SC SW WA
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

11. Proportion of the market accounted for by the top 5
Sand & Gravel Crushed rock
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk
Total aggregates
Tarmac Aggregate Industries Hanson Cemex Breedon Others

12. Marwyn
Materials
acquired
Ennstone.
Renamed
Breedon
Group
Breedon
acquired
C&G
Concrete
Breedon
acquired
Speyside
Sand &
Gravel
Breedon
acquired 11
quarries
from
Aggregate
Industries &
4 from
Marshalls
Breedon
acquired
Barr
Quarries;
Huntsman
Quarries &
50% of H V
Bowen
Breedon
acquired
Hope
Construction
Materials &
Sherburn
Stone
Breedon
acquired
Humberside
Aggregates
& 4 quarries
from
Tarmac
Breedon
acquired
Lagan Group
&
Blinkbonny
Quarry
20112010 2013 20142012 2016 2017 20182015
GD Harries
acquired FH
Gilman
Hanson
acquired
remainder
50% MQP
from
Tarmac
Leiths
acquired
Alexander
Ross &
Sons
Lafarge &
Tarmac
merged.
Hope Const.
Materials
created
Tillicoultry
acquired
Independent
Aggregates
Lafarge
Tarmac
sites split
between
CRH
(Tarmac) &
Aggregate
Industries
Killoughery
acquired
Bournewood
S&G
Aggregate
Industries
acquired
Kendall
Bros
Lafarge
Holcim
Global
Merger
P Casey
Enviro
acquired
Astley S&G
Changes in company ownership since 2010
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

13. Recycled and Secondary Aggregates
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk
0% 20% 40% 60% 80% 100%
Secondary aggregates
IBA China clay sand GGBS PFA FBA APCr Other
Recycled aggregates
700 static sites 450+ companies 50+ million tonnes p.a.

14. Added value products
Product Tarmac Aggregate
Industries
Hanson Cemex Breedon
Asphalt     
RMX     
Building blocks   x  
Block paving x  x  x
Paving slabs x  x  x
Other concrete products   x  
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk
Asphalt
Concrete Products
RMX
Other uses

15. GB trends in aggregates, rmx, asphalt and blocks
since 2000
50
60
70
80
90
100
110
120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Index2000=100
Total aggs (inc. Marine)
Asphalt
RMX
Building blocks
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

16. Aggregates reserves – by company
0% 20% 40% 60% 80% 100%
Total aggregates
Aggregate Industries
Tarmac
Hanson
Cemex
Breedon
Others
0% 20% 40% 60% 80% 100%
Crushed rock
Aggregate Industries
Tarmac
Hanson
Cemex
Breedon
Others
0% 20% 40% 60% 80% 100%
Sand & Gravel
Tarmac
Hanson
Cemex
Aggregate Industries
Breedon
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

17. Aggregates reserves – by region
0% 5% 10% 15% 20% 25% 30% 35%
East of England
W. Mids
E. Mids
Yorks & Humbs
North East
Sand & Gravel
0% 5% 10% 15% 20% 25% 30% 35%
E. Mids
S. West
W. Mids
North East
S. East
Crushed Rock
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

18. Aggregates reserves – replenishment
24% of S&G sales were
replenished through
new planning consents
3% of CR sales were
replenished through
new planning consents
2017
10-year average
53% 69%
Source: MPA
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

19. End-use by product
Crushed rock
New housing Infrastructure (roads) Infrastructure (non-roads)
Other new work R&M
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk
Sand & gravel
New housing Infrastructure (roads) Infrastructure (non-roads)
Other new work R&M

20. Key industry issues
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk
• Investment backlog
• Hinkley Point ‘C’
• HS2
• Crossrail
• RIS 1 and RIS 2
• National Infrastructure Pipeline
• Heathrow third runway
• Planning for aggregates
• Sterling
• The ‘B’ word

21. Market prospects
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk
Sector 2018 2019 2020 2021
Housing 2% 3% 2% 4%
Public Non-housing -4% 1% 2% 2%
Commercial -10% 0% 1% 2%
Industrial 2% 1% 2% 2%
Infrastructure 4% 14% 12% 14%
All sectors -2% 4% 3% 5%
Construction industry

22. Market prospects
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk
Aggregates Industry
Product 2018 2019 2020 2021
Asphalt 0% 1% 3% 5%
Ready mixed concrete -3% 0% 3% 5%
Aggregates 1% 2% 4% 5+%

23. Thank you for your time
Contact BDS at: -
www.bdsmarketing.co.uk
andy.sales@bdsmarketing.co.uk
(01761) 433035
BDS Marketing Research (QMJ) Ltd – IQ Webinar December 2018 www.bdsmarketing.co.uk

24. visit quarrying.org/iq-events for more information & registration.
Thank you for joining us, details of our next webinar are below