Latest News Thu, Jul 29, 2021 8:48 AM
The construction products manufacturing sector posted a fourth successive quarterly expansion in the second quarter of 2021, according to the latest Construction Product Association’s (CPA) State of Trade Survey.
Private housing, infrastructure and private housing repair, maintenance and improvement (rm&i), in which activity remains firmly above pre-coronavirus levels, continued to be the main drivers of growth.
Material cost inflation, however, remained a prominent feature and supply-side constraints were seen as the key concern for the year ahead.
In 2021 Q2, nearly two-thirds of heavy side manufacturers and 44% of light side manufactures reported that sales had increased compared to Q1. With demand in private housing and private housing rm&i expected to be sustained by both government stimulus and increased appetite for properties with more outdoor and office/study space, 67% of light side firms expected a rise in product sales in the year ahead. On the heavy side, this balance (79%) was the highest in nearly eight years, reflecting work occurring on large infrastructure projects. Plans for hiring also remained on the table, with 61% of light side firms anticipating increasing headcount, the highest balance in seven years.
The supply of raw materials and components over the coming year remains the largest concern for manufacturers due to bottlenecks in the global supply chain. Unsurprisingly, raw material prices followed next as a potential constraint for heavy side firms alongside demand, whereas labour availability concerns rose up the agenda for light side firms.
Amandeep Bahra, CPA Economist said: “The recovery of the construction products manufacturing industry is well underway, with manufacturers posting the fourth consecutive quarterly rise in product sales in 2021 Q2. Adding to this positive news were expectations of further growth in the year ahead and plans to hire. However, with global supply chain woes lingering due to a lack of shipping containers and drivers, a record proportion of manufacturers cited the supply of materials and components as a major constraint on the 12-month horizon. Inevitably, this stoked concerns among heavy side firms over high raw material prices over the coming year. As self-isolation and Brexit rules also bite, the industry’s long-standing issue over labour availability was a key risk for light side firms.”
Key survey findings include:
Featured News
Major reforms of the UK's planning system, mortgage market and property tax regime...
The new Labour Government has set out a range of ambitious plans during its first 100...
BUILDING PRODUCT LIBRARY - LATEST BROCHURES
Novantica - Cement F...
By Fassa Bortolo
Fassatherm System -...
By Fassa Bortolo
Fassarend System - P...
By Fassa Bortolo
Fassalime System - P...
By Fassa Bortolo
Sport England’s Perf...
By Passivent
BUILDING PRODUCT DIRECTORY - LATEST PRODUCTS
Straightcurve® – headquartered in Australia, is renowned for high-end innovative garden edging,...
The Kingspan RLG600 raised access floor panel is intended for light office use and is capable of...
Kingspan RHG600 Simploc is the heavy grade floor system, capable of handling up to a 12kN/m2...
CONSTRUCTION VIDEOS - LATEST VIDEOS
“Building with stone wool insulated sandwich panels” written by Professor Imperadori, is now...
Portakabin | Installation at the iconic Admiralty Arch, London