< PreviousMATERIALS AND COMPONENTS T he construction materials industry remains an important one within the region and the UK as a whole, supporting hundreds of thousands of jobs and contributing massively to the economy. Toward the end of 2024, the demand for heavy side materials increased, with sales of ready-mixed concrete rising by over 5% in the final quarter of the year. The increase was not as drastic in construction aggregates, with a little over 0.5%, but mortar saw a more impressive rise of 2.4% when compared to the same period in 2023. That increase in mortar means that it has now risen for three consecutive quarters, indicating a continued revival in the housebuilding market that has been witnessed with new developments across the region. Housing developments are becoming regular cash cows for developers in the region following repeated government promises to provide more housing, and the construction materials industry has benefited. However, according to figures released by the Mineral Products Association (MPA), this data underscores the severity of construction slowdown over the last two years and the challenges facing what is an industry worth over £20 billion. The MPA quote mortar sales as having fallen by 15% in 2024, falling below two million tonnes, 30 Business Link www.blmforum.net Concrete and steel The construction materials industry has suffered over the last few years but glimmers of recovery are there – and steel might have an exciting future thanks to government plans. 32 Á Concrete and steel www.blmforum.net Business Link 31 mere financial support, the steel strategy claims the government will promote the domestic use of UK steel and seek out future market opportunities for UK steel. They have also said they will take into account the global capacity and surplus of steel that has driven down prices over the last few decades and investigate how to protect UK steel manufacturers from said markets. Other countries can produce steel cheaper due to lower quality of employee care, something the UK cannot – and should not – attempt to compete in. Leaving aside housebuilding and construction, a more cynical but also realistic mind would argue the protection of the steel industry is in no small part due to global strain over Russia and the potential for future armed conflict. Given China is a big supplier of steel used in the UK but also an ally of Russia’s, it makes sense from a logistical point of view to preserve and protect the UK’s steel industry in the event the country needs it to protect itself. This is perhaps why similar protections to the steel strategy have not been rolled out over other construction materials like the MPA might wish. MATERIALS AND COMPONENTS 32 Business Link www.blmforum.net which is a huge decrease from 2022’s peak figure of 2.7 million tonnes sold. Ready-mixed concrete also suffered in 2024, experiencing a drop of over 10%, which caused it to reach its lowest level in over sixty years. The overall state and health of the industry has not been helped by new plans from DEFRA which may impact construction materials and aggregates. The government’s “Steel Strategy” aims to protect the vital steel industry, and that is by no means a bad thing, but the MPA has called their plans into doubt, calling them inconsistent on the future of some construction materials while overlooking aggregates such as cement and concrete. Dr Diana Casey, MPA Executive Director for Energy and Climate Change, said the Government’s plan for steel made worryingly familiar reading from a cement perspective, where similar existential threats are faced: “Cement was recently identified as the UK’s most vulnerable sector to carbon leakage, which effectively shifts emissions to countries with weaker climate policies. We’re not in the same position as steel, yet, but we’re on the same trajectory, with the same uncompetitive industrial energy costs. The Government should be aiming to reach 2050 with a stronger, decarbonised industrial base taking advantage of our natural strengths such as engineering expertise, mineral resources and carbon storage capacity. But instead, they risk killing off another foundation sector as other countries support their own industries to a greater degree than we do here.” The steel strategy itself promises to support the steel sector in developing and exploiting opportunities for growth, and the government has earmarked some £2.5 billion to support their plans for steel via the National Wealth Fund (NWF) and other routes. Aside from www.blmforum.net Business Link 33 34 Business Link www.blmforum.net FREIGHT, STORAGE AND MOVEMENT O ne can’t really talk about freight and shipping without bringing up the volatility of the global market. Trump’s presidency has brought in such instability that any news on tariffs that might be written now could be obsolete by the time of reading. That said, the unpredictable nature of his policies – which his supporters tout as a selling point – are bad news enough for the freight industry. Markets do not like instability, which means a lot of manufacturers are going to be questioning how committed they want to be to US trade in the coming months and years. This is going to have a knock- on effect for the freight shipping industry, which thrived the most in our region back when the UK was part of the EU and benefited from many more free trade agreements than it does now. During 2024, one of the largest challenges to the global freight industry was the persistent onslaught of Houthi attacks targeting vessels navigating the Red Sea, and while the area still remains a dangerous one, the heightening tension from Russia is perhaps more overbearing. Carriers have resorted to implementing General Rate Increases (GRIs) and surcharges to offset the escalating costs associated with prolonged voyages and increased levels Less by sea and more by land and air International trade is in a bad spot right now, and ocean freight is suffering. However, it’s not all bad news for road and air. 36 Áwww.blmforum.net Business Link 35 FREIGHT, STORAGE AND MOVEMENT36 Business Link www.blmforum.net of risk. Maintaining schedules amidst the need for additional vessels translates to heightened expenses, encompassing fuel and operational costs. Consequently, rates have witnessed a notable uptick, particularly on routes connecting to North America, Europe, and the Mediterranean. Similarly, insurance costs have ballooned, with premiums escalating by as much as 1% of vessel values, rendering the continuation of transits through the region more financially burdensome. As the industry navigates these turbulent waters, the timely sharing of information between competitors is imperative for individual carriers to adapt their operations and remain safe. That said, although ocean freight rates have indeed experienced noticeable increases, they pale in comparison to the height of the Covid-19 pandemic, providing hope in today’s climate. At its peak, rates for 40-foot containers bound from Asia to North Europe and the Mediterranean soared to around $15,000, while those destined for North America surpassed the staggering mark of $20,000. But saying things were worse before is small comfort for the industry today, particularly for businesses in coastal regions that rely on trade. Air freight, on the other hand, has seen something of an uptick in the UK and our region. In Yorkshire, Doncaster Council is looking to secure five airlines and increase freight capacity at Doncaster Sheffield Airport, which could see the airport handle up to 100,000 tonnes of air freight. It is the risks associated with sea freight that allows for such investment, as militant groups find it much harder to challenge aircraft than seacraft. Road freight is also seeing some fresh investment in the region. Development of lorry parks at multiple locations www.blmforum.net Business Link 37 FREIGHT, STORAGE AND MOVEMENT throughout our region feature in a raft of grants being introduced in a £14m nationwide scheme to enhance efficiency and working conditions in the haulage industry. Funds are being given to enhance parking and driver welfare facilities throughout Lincolnshire, Yorkshire, and Derbyshire including at Immingham, Stallinborough, Ulceby, Colsterworth on the A1, Newark, Sutterton, Bardon in Leicestershire, and numerous Moto locations amongst others. Future of Roads Minister Lilian Greenwood revealed the 23 successful applicants of up to £4.5 million from the government to improve truckstops and working conditions for lorry drivers. The investment will also help build better dining, changing and rest facilities, as well as new CCTV and secure fencing to boost welfare and security for lorry drivers. The funding is from the third year of the HGV parking and driver welfare grant scheme, which will come in addition to £8 million from industry, for a total funding boost of £12.5 million to improve truckstops. This investment comes on top of £1.8 million from the government for 10 small and medium enterprises (SMEs) to trial new groundbreaking technology for decarbonising freight and driving innovation in the sector. Lilian Greenwood said: “Freight is a crucial engine of our economy and it is only right we do all we can to improve working conditions, pioneer innovation and drive sustainability across the industry. Our funding, combined with investment from the industry, will ensure lorry drivers can enjoy safer parking, a proper rest and a warm meal, while supporting UK businesses to harvest the best of technology to move freight faster, decarbonise our supply chain, and grow the economy for all.”38 Business Link www.blmforum.net AUTOLINK Future cars There are always new motors on the horizon, ranging from entry level to business executive. Here are a few that might make it to our roads. www.blmforum.net Business Link 39 AUTOLINK Lotus Emira Turbo SE Lotus has revamped its Emira line-up to include the new, more powerful Emira Turbo SE next to the Emira V6, both building on the strong foundations of the previous First Editions that have captivated driving enthusiasts around the world. The Emira Turbo SE features enhanced levels of performance and design whilst building on the attributes the automotive world has come to expect, including its impressive supercar-like appearance, striking lines and thrilling dynamic performance, delivering a unique blend of ride and handling plus outstanding aerodynamics. Powered by a 4-cylinder variable geometry turbocharged engine* with an 8- speed DCT gearbox, both sourced from technology partner AMG, the Emira Turbo SE has an output that has increased to 400 bhp (+40 bhp), with a torque increase of 50 Nm to 480 Nm. The new performance figures equate to a higher top speed of 290 km/h (+ 18 km/h) 180 mph (+11 mph) and an even faster acceleration time of 0-100km/h (0-62 mph) in just 4.0 seconds. Lotus Emira Turbo SE Next >