Sales of construction products rose in Q1, and sales are expected to rise even further during Q2 and over the next 12 months, judging by the Construction Products Association’s (CPA) latest State of Trade Survey.
Dr Noble Francis, economics director at the CPA, explained that 76% of product manufacturers, on balance, reported sales rising in Q1 compared with the previous quarter. Apparently this growth was not just driven by housebuilding, but also by private-sector offices and new infrastructure, which are also rising.
According to the report, 85% of product manufacturers expect sales to rise in the coming year. Half of all product manufacturers both anticipate sales rising by more than 5% in the next 12 months, and plan to invest in plant and equipment during this time.
“Industry is optimistic, looking forward,” said Dr Francis. “With prospects improving in the Eurozone, 38% of heavyside firms and 61% of lightside firms anticipate sales rising over the coming year, despite the rising value of Sterling.
“The key concern for manufacturers in Q1 was rising costs. Sixty-five percent of heavyside manufacturers and 54% of lightside manufacturers reported that costs rose compared with a year earlier. These cost rises were due to energy and transport fuel costs, exacerbated by more recent rises in wages and salaries.”
