Cement Crunch: The Weak Link in UK Housebuilding
Cement is one of those things most of us rarely think about. It is simply there, holding up homes, schools, hospitals and motorways. Yet the UK is now facing a cement crunch not seen in generations, and the consequences could be felt across every corner of construction.
Latest figures show cement production has fallen to its lowest point since 1950. In 2024, output dropped to just 7.3 million tonnes, less than half the volume we saw in 1990. For an industry that underpins practically every build in the country, that is more than just a dip. It is a serious weak link.
Rising energy costs are a major driver, alongside higher labour expenses and heavy carbon taxes. Domestic producers face these headwinds while overseas suppliers can sell into the UK without the same costs. Imports now account for nearly a third of sales, compared with only 12 per cent in 2008. That shift leaves the UK increasingly reliant on supply from abroad.
This trend goes against the spirit of Brexit, which was often framed as a way of boosting self-sufficiency. Instead, a mix of high energy costs and the additional burden of carbon levies means that more, not less, product is coming from overseas. The promised Carbon Border Adjustment Mechanism in 2027 may help, yet many argue that is too late and that procurement policy should already be favouring UK-made materials.
It is not just cement under pressure. Bricks and blocks remain tight in supply, despite some recent improvement in delivery rates. UK brickmakers can only support around 250,000 homes per year, and imports continue to grow. Timber and steel costs have also risen sharply in recent years, adding to the squeeze on developers. Even plasterboard has been in short supply, though new factories like the one planned near Bristol aim to boost capacity.
There are also concerns about where some imports come from. Recent investigations revealed that timber with Russian origins is still being used in UK housing, sometimes disguised as Baltic supply. For a country aiming to hit climate and sustainability targets, that presents both reputational and ethical risks.
The challenge goes beyond the supply of physical materials. Ready mix concrete sales have also slumped to historic lows, reflecting a construction pipeline that feels increasingly uncertain. When builders and suppliers cannot see what is coming down the line, confidence is lost, and investment decisions stall.
This week on Construction Matters, Gareth Wax hosts the discussion, joined by myself, Hamish McLay, and Michelle Carr, the Construction Alchemist, bringing clarity, innovation and transformation to the construction industry through a rare blend of strategy, intuition and vision. Together we will look at whether the cement crunch is part of a tough cycle we will eventually ride out, or a deeper structural problem that threatens Britain’s ability to build at scale.
It promises to be a lively conversation. Cement may not be glamorous, yet without it homes are not built, roads are not laid and hospitals do not rise. Add to that shortages in bricks, timber, steel and plasterboard, and the foundations of our housebuilding and infrastructure plans start to look increasingly fragile.
Join us live on Tuesday 9th September at 1pm as we take on the cement crunch head on, along with the wider risks to Britain’s construction materials supply. The weak link in UK housebuilding might not be one material, but several.
Never miss an episode. Subscribe to our YouTube channel to watch live or catch up: https://www.youtube.com/@SpillingTheProper-Tea
---
Construction Matters – live Tuesday 9th September at 1pm.
PS:
For content enquiries: hm@searchandconveysolutions.co.uk
For podcast/media info: gareth@mphats.com
Latest figures show cement production has fallen to its lowest point since 1950. In 2024, output dropped to just 7.3 million tonnes, less than half the volume we saw in 1990. For an industry that underpins practically every build in the country, that is more than just a dip. It is a serious weak link.
Rising energy costs are a major driver, alongside higher labour expenses and heavy carbon taxes. Domestic producers face these headwinds while overseas suppliers can sell into the UK without the same costs. Imports now account for nearly a third of sales, compared with only 12 per cent in 2008. That shift leaves the UK increasingly reliant on supply from abroad.
This trend goes against the spirit of Brexit, which was often framed as a way of boosting self-sufficiency. Instead, a mix of high energy costs and the additional burden of carbon levies means that more, not less, product is coming from overseas. The promised Carbon Border Adjustment Mechanism in 2027 may help, yet many argue that is too late and that procurement policy should already be favouring UK-made materials.
It is not just cement under pressure. Bricks and blocks remain tight in supply, despite some recent improvement in delivery rates. UK brickmakers can only support around 250,000 homes per year, and imports continue to grow. Timber and steel costs have also risen sharply in recent years, adding to the squeeze on developers. Even plasterboard has been in short supply, though new factories like the one planned near Bristol aim to boost capacity.
There are also concerns about where some imports come from. Recent investigations revealed that timber with Russian origins is still being used in UK housing, sometimes disguised as Baltic supply. For a country aiming to hit climate and sustainability targets, that presents both reputational and ethical risks.
The challenge goes beyond the supply of physical materials. Ready mix concrete sales have also slumped to historic lows, reflecting a construction pipeline that feels increasingly uncertain. When builders and suppliers cannot see what is coming down the line, confidence is lost, and investment decisions stall.
This week on Construction Matters, Gareth Wax hosts the discussion, joined by myself, Hamish McLay, and Michelle Carr, the Construction Alchemist, bringing clarity, innovation and transformation to the construction industry through a rare blend of strategy, intuition and vision. Together we will look at whether the cement crunch is part of a tough cycle we will eventually ride out, or a deeper structural problem that threatens Britain’s ability to build at scale.
It promises to be a lively conversation. Cement may not be glamorous, yet without it homes are not built, roads are not laid and hospitals do not rise. Add to that shortages in bricks, timber, steel and plasterboard, and the foundations of our housebuilding and infrastructure plans start to look increasingly fragile.
Join us live on Tuesday 9th September at 1pm as we take on the cement crunch head on, along with the wider risks to Britain’s construction materials supply. The weak link in UK housebuilding might not be one material, but several.
Never miss an episode. Subscribe to our YouTube channel to watch live or catch up: https://www.youtube.com/@SpillingTheProper-Tea
---
Construction Matters – live Tuesday 9th September at 1pm.
PS:
For content enquiries: hm@searchandconveysolutions.co.uk
For podcast/media info: gareth@mphats.com
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