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Welcome
Caution remains in 2020 for construction product
manufacturers
The final quarter of last year proved to be a mixed performance
for the construction products manufacturing sector, with an equal
proportion of manufacturers reporting an increase or decrease in
sales for both heavy side and light side products.
The Construction Products Association's State of Trade Survey for
2019 Q4 reports that 43% of heavy side manufacturers each reported
a rise or fall in sales compared to Q3.
Heavy side products are typically used in the early, structural stages
of construction. Sales of light side products, typically used in the
later stages of building, were reported to have either increased or
decreased by 36% of manufacturers.
Manufacturers retain a positive, yet cautious view for the next 12
months that will encompass the UK leaving the EU and negotiating
trade agreements during the transition period to the end of
December.
On balance, 21% of heavy side firms and 29% of light side firms
anticipated a rise in sales for the year ahead. This was combined with
the majority of product manufacturers anticipating that headcount
would remain unchanged over the same period.
Rebecca Larkin, CPA Senior
Economist said: "The Q4 survey
results provide a clear illustration
of the varying levels of activity
across sectors of construction
and regions of the country.
"Those manufacturers reporting
decreases in sales are likely to be
feeding into private new house building
and RM&I, where activity has slowed as buyers and
homeowners pause to take stock of the economic situation and their
personal finances.
"In contrast, manufacturers whose products are used in warehouses,
infrastructure or hotels will be buoyed by a pipeline of projects.
Nevertheless, the high proportion of manufacturers citing demand as
their key concern for 2020 and signs of a pause in hiring suggest that
the cloud of uncertainty is yet to clear."
Paul Groves // Group Editor
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Heating, Plumbing
& Ventilation
Floors, Walls & Ceilings
External Works &
Drainage
Roofing, External Walls
& Insulation
32
Doors, Windows, Glazing
& Entrance Systems
6
Product Highlights
Kitchens, Bathrooms
& Interiors
Safety, Security &
Fire Protection
