The latest survey from the Construction Products Association indicates that sales of construction products rose during Q1 and sales are expected to rise even further for the next 12 months. In addition, exports are anticipated to rise over the next year, boosting prospects for the industry further.
Dr Noble Francis, Economics Director at the Construction Products Association (CPA), said: “Construction product sales have risen for the fourth consecutive quarter. Over three-quarters of product manufacturers, on balance, reported sales rising in Q1 compared with the previous quarter. This growth was not just driven by house building. Private sector offices and new infrastructure are also rising, adding to the recovery in the housing sector.
“Looking forward, product manufacturers anticipate the construction recovery to continue in Q2 and over the next year, again due to growth in housing, commercial and infrastructure. As a consequence, 86 per cent of firms, on balance, expect sales to rise in the next 12 months.
“Exports of construction products rose in Q1 and industry is even more optimistic looking forward. With prospects improving in the Eurozone, 38 per cent of heavy side firms and 61% of light side firms anticipate sales rising over the coming year despite the rising value of Sterling.
“The key concern for manufacturers in Q1 was rising costs. 65 per cent of heavy side manufacturers and 54 per cent of light side manufacturers reported that costs rose compared with a year earlier. These cost rises were due to energy and transport fuel costs, exacerbated by more recent rises in wages and salaries.”