Aggregate is one of the many ingredients that fuel large-scale industrial development of the 21st century and is made from small granular materials such as sand, crushed stone, and slag, used to make concrete and gravel. The concrete industry is expected to grow at 2.9% per year until 2025, which is one of many examples why demand for aggregate will show no signs of slowing down over the coming years.
Aggregate is used in the construction of houses, commercial buildings, schools, airports, runways, roads and many more. Whilst the importance of aggregate in our everyday lives is undisputed, the high demand for aggregate falls back onto a changing dynamic within the global supply chain.
Changes To Consumer Spending Profile
With lockdowns and travel restrictions around the world, it limits international borders and overseas opportunities, therefore the disposable income that could have be spent on holidays or overseas has now moved towards home renovations and the purchase of new houses. Changes to the consumer spending profile are a direct result of the limitations of international borders. With extra time for home renovations and upgrades comes the increase in demand for concrete and other aggregate products. The change in consumer spending towards home development is fairly represented in the observed increase in revenue from hardware stores over the pandemic. Bunnings observing an increase in sales of 30.9 per cent between July and October, ultimately resulting in sustained growth in the demand for aggregate supplies.
Government Development
Around the world, governments have been investing large amounts of money in building the necessary infrastructure to support the growing population. Major cities have experienced considerable growth in population, thereby requiring greater quality and quantity of new buildings, airports and therefore aggregate. With an increase in the world’s population, the demand for construction supplies such as aggregate shows no sign of slowing down.
Overseas Shipment Delays
COVID-19 quarantine rules and strict border requirements means that counties now see a long backlog of items to clear customs. While job supply is high, companies are struggling to get the necessary materials into the country to complete jobs. As a result, companies have been unable to expand their business or take on new jobs for clients. Even with the available jobs, the backlog in waiting for items to clear customs, providing a huge bottleneck in the construction industry.
The increased demand for aggregate comes from the changing spending behaviours of consumers and the government. At the same time, the global supply chain scrambles to make up for lost time arising from COVID-19 restrictions, resulting in a shorter supply of construction materials. The current global market is changing, with high demands showing no signs of slowing down. We recommend that you pre-order early and plan ahead to avoid unexpected delays for all aggregate or construction materials.
