An increase in the construction products sales has signalled a catch-up in activity lost to adverse weather conditions during the winter – pointing to a rise in output levels for the next 12 months.
That’s according to the latest State of Trade survey by the Construction Products Association (CPA), which found that a balance of 40% of heavy-side products manufacturers (the percentage of those reporting an increase, less those registering a decline) reported a rise in sales in the second quarter of 2018, following two previous quarters of falling sales.
However for light-side manufacturers, 29% of firms on balance reported a decrease in sales over the same period, which the CPA said reflected the lagged impact of the industry’s decline in the first quarter of the year because light-side products such as insulation, boilers, glass and lighting tend to be used at the end of the building process.
Both light- and heavy-side manufacturers said they anticipated a return to growth in the coming quarters, with 43% of heavy-side firms and 27% of those on the light side expecting an increase in sales over the next 12 months.
Rebecca Larkin, CPA senior economist said: “These results fit the profile of construction catch-up from a weather-affected Q1. As we’ve moved from a freezing spring to a hot summer, groundworks and work on external structures has been able to resume, and this has been reflected in increased sales for heavy side manufacturers. The disruption in Q1 is likely to have delayed interiors and finishing works starting on site which is evident in the decline in light side sales during Q2.
“Manufacturers’ product sales, capacity utilisation and new hiring are all still expected to increase over the next year, but price pressure is coming from all directions across fuel, energy, raw materials and labour, which is likely to be felt throughout the construction supply chain.”
