The results of the Construction Products Association’s State of Trade Survey for the first quarter of 2025 showed it was a mixed quarter for construction product manufacturers’ sales performance. Encouragingly, forward-looking indicators point to expectations of growth returning over the next 12 months as the construction recovery accelerates.

In 2025 Q1, a balance of 15% of heavy side manufacturers reported that sales of construction products decreased compared to the fourth quarter or 2024, marking it the first decline in a year. In contrast, 55% of light side firms reported increased sales, the strongest result since the third quarter of 2019; pre-pandemic.

Overall, manufacturers remain optimistic about the year ahead, with 31% of heavy side firms and 80% of light side firms expecting sales to rise over the next 12 months, on balance.

In line with these expectations, manufacturers across both categories reported an increase in employment in Q1. A balance of 31% of heavy side firms and 55% of light side firms increased headcount in Q1, corroborating expectations of an increase in demand and activity. However, rising costs – particularly wages – remain an inflationary factor affecting manufacturers’ input costs.

Rebecca Larkin, CPA Head of Construction Research, said: “The divide in manufacturers’ sales performance in Q1 reflects the uneven pace of recovery across construction sectors. Whilst new starts in house building, large home extensions and commercial developments remain subdued, government-backed energy-efficiency schemes and housing completions ahead of the change to stamp duty thresholds continued to support demand for light side products.

“The increase in employment and strong forward-looking sales expectations recorded in Q1 suggest manufacturers are preparing for a better second half of the year. However, the increase in global uncertainty since the survey was carried out – owing to US tariff changes – means businesses are likely to remain cautious. The next few months, and particularly once the US government’s 90-day pause ends at the end of June, will be critical for confidence, investment, and clarity.”