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Increase in the demand for building products according to the Construction Products association survey

The state of trade survey for the second quarter of 2015 has been put together by the Construction Products Association and indicates that sales of construction product manufacturers have now risen for nine consecutive quarters.

Increase in the demand for building products according to the Construction Products association survey

According to the report, growth appears to be being driven by all key areas of the UK construction market, together with a rise in export demand.

Underpinned by a comprehensive survey of CPA Members, the CPA Trade Survey provides timely analysis of current trends in the construction products manufacturing sector and an assessment of likely trading conditions going forward.

In addition to sales, the report includes analysis of trend in employment, cost inflation, capacity utilisation and international trade. Furthermore, it distinguishes between the experience of manufacturers of heavy side products, typically used in the early stages of the construction process, and light side firms, producing products used internally and at a later stage in the build.

The report subtracted those who reported a decline in sales from those with rising sales results in a net balance of 78% of heavy side firms and 73% of light side firms reporting Q2 sales growth compared to a year earlier. A balance of 78% of heavy side product manufacturers and 50% of light side product manufacturers reported that they anticipate a further rise in sales over the coming year.

The report also shows a 20% increase for exports from heavy side firms and 40% from light side firms, with a combined 61% anticipating a rise in exports over the next year. Continue reading