Latest News Thu, Oct 17, 2019 8:00 AM
The construction products manufacturing sector began to feel the impacts of the broader weakness in economic growth and a diminishing pipeline of construction activity in Q3, with heavy side manufacturers reporting a fall in sales and a slowdown in hiring during the quarter.
The Construction Products Association’s State of Trade Survey for 2019 Q3 reports that 3% of heavy side manufacturers, on balance, reported a fall in sales compared to Q2.
Sales of light side products, typically used in the later stages of construction, were reported to have increased by a balance of 54% of manufacturers, however.
Looking ahead, manufacturers are signalling a cautious view for the next 12 months that encompass Brexit and the rising likelihood of a general election. 11% of heavy side firms anticipated a fall in sales for the year ahead, which was the survey’s first negative reading in the forward-looking indicator in seven years. This was combined with a subdued picture for hiring in Q3, in addition to expectations that rises in headcount over the next year will be the lowest since 2013.
Rebecca Larkin, CPA Senior Economist said: “Third quarter performance was mixed across heavy side and light side product manufacturers, which serves to illustrate the varying fortunes across construction at the moment.
"The level of construction work underway is currently relatively high, which is benefiting light side product manufacturers feeding into large-scale city centre regeneration underway, particularly in Birmingham and Manchester.
"However, the fall in sales and forward-looking indicators for the heavy side, which is typically linked to the early structural elements of a building, highlights the upcoming gap in the pipeline of new construction orders and project starts, notably in the residential and commercial sectors and in southern regions of the country.”
Key survey findings include:
Featured News
CIBSE recently hosted a highly successful launch event for its Chartered Organisation...
The New Model Institute for Technology & Engineering (NMITE) announces the...
BUILDING PRODUCT LIBRARY - LATEST BROCHURES
FRAMESAFE FR A2 FIRE...
By Glidevale Protect
A Guide to Aluminium...
By F.H. Brundle
Handrailing & Balust...
By F.H. Brundle
RLG600 Access Floori...
By Kingspan Data & Floo...
RHG600 Simploc
By Kingspan Data & Floo...
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
Straightcurve® Product Range Overview - A Demonstration of Installation Ease
In progressive and dynamic business sectors, such as construction, it’s natural to be forward...
Decorative aluminium horizontal bulkheads more than 100 metres long have been supplied and installed...