At Cardinalis Concrete, we see how aggregate demand – the total need for goods and services in our economy – directly affects our concrete supply. When the aggregate demand curve shifts, it changes how we deliver concrete to your building projects.
What Is Aggregate Demand in Simple Terms?
Aggregate demand (AD) is just the total demand for everything made in the country. For our concrete business, it shows how much building material everyone needs across all projects.
The price level of materials goes up when:
Consumer spending on home improvements increases
Investment spending on new buildings rises
Government spending on roads and schools grows
Net exports of building materials change
Interest rates drop, making borrowing cheaper
All these factors affect the country’s gross domestic product (real GDP) and economic growth, which then impact our concrete supply chains.
How Demand Changes Affect Our Concrete Supply
When demand curves shift due to changes in the economy, we see these effects on our concrete business:
Finding Raw Materials: When demand for capital goods like concrete rises, raw materials can be harder to get. Our aggregate supply in Cambridgeshire becomes even more important during these busy times.
Price Changes: When total demand increases, the price level of materials often rises too. Experts say by 2035, Britain will need up to 323 million tonnes of aggregates yearly, which might affect concrete prices.
Making More Concrete: Higher aggregate demand (AD) means we need to produce more concrete. Our special mixing trucks help us quickly adjust to these changes in demand.
Delivery Challenges: Changes in exchange rates and higher domestic demand can make getting materials to your site more difficult.
How Cardinalis Handles These Market Changes
At Cardinalis, we have simple but effective ways to manage shifts in aggregate demand:
When interest rates rise, borrowing becomes more expensive. This often reduces investment spending in construction, which can temporarily lower aggregate demand for concrete and sometimes affect prices.
How does government spending impact concrete supply?
Government spending on roads, bridges and public buildings significantly increases the aggregate demand for concrete. When the government builds more, concrete suppliers get busier, which might extend delivery times.
How does consumer spending affect concrete availability?
More consumer spending on home improvements creates higher demand for concrete. During periods of strong economic growth and rising real GDP, we see increased need for our domestic concrete mixes.
Does aggregate demand affect concrete quality?
While aggregate demand (AD) and the total demand for goods and services in an economy affect our supply chains, Cardinalis Concrete never compromises on quality. We adjust our operations, not our standards, no matter how the demand curves shift.
Contact our team today to discuss your concrete needs. With over ten years of experience, Cardinalis Concrete remains your reliable partner across Cambridgeshire, Suffolk, Hertfordshire, Essex and Norfolk.
