The quandary within our market continues. Building material manufactures have witnessed margins being further squeezed, with the added uncertainty around where the construction market is heading. Raw materials, fuel and energy costs are raising above inflation, with little sign of easing.
It is therefore buoying to read the latest Construction Product Associations set of reports about quarter one performance for this fiscal year.
65% of heavyside firms have reported in increase in their order books in Q1, with 38% of lightside manufacturers seeing higher sales than this time last year. If you require further motivation, some 68% of heavyside manufacturers expect a further raise in Q2 (47% lightside).
Come on building materials lets unite and takeover!
The Construction Products Association’s (CPA) latest State of Trade Survey reports that UK construction product manufacturers registered an increase in sales and activity in the first quarter of 2017. This extends the industry’s period of growth to four years, despite a backdrop of increasing input cost pressures. The construction products manufacturing industry has an annual turnover of £55bn, directly providing jobs for 300,000 people across 22,000 companies. Products range from ‘heavyside’ materials such as steel, bricks, timber and concrete to ‘lightside’ products such as insulation, boilers, glass and lighting. On an annual basis, 65% of heavyside firms reported that sales had increased in Q1, while on the lightside, 38% of firms reported that sales were higher than a year earlier.