Much has been made of manufacturers margins being squeezed when importing raw materials. The weakened pound has, and will no doubt continue, making sure of this. Building material manufacturers are being forced to increase prices to their trading partners, with contractors and merchants carrying the hike.
With article 50 only likely to carry on affect sterling on this downward trajectory, this does provide an opportunity for British manufacturers.
Over the recent past I have written quite heavily about the opportunity exporting can provide. Although they have been trading in foreign markets for sometime, Ibstocks latest set of results below highlight how they are making strides. With UK sales up a relatively modest 2%, they have driven 18% growth in the US market.
Brick and block maker Ibstock saw its group revenue rise 5% in 2016, mainly because of a lift in its US operations. In a trading update ahead of its 2016 annual results, Ibstock said that revenue from clay and concrete products in the UK, which represents approximately 80% of group revenue, was up 2% for the full year compared to 2015.