The Construction Products Association’s latest state of trade survey, covering the third quarter of 2022, shows that manufacturer’s sales have fallen.
And with a slow-down in repair & maintenance work and a fall in public sector spending on construction, further decline is anticipated in the year ahead.
A net balance of 12% of heavy side manufacturers reported that sales of construction products declined in Q3 this year, marking the first fall since the nationwide lockdowns in spring 2020. Alongside this, a net balance of 17% of light side manufacturers reported that product sales rose, which marked the balance in two years.
Looking to the next quarter, a balance of 47% of heavy side firms and 13% on the light side anticipate a fall in sales in the fourth quarter.
And looking to the next 12 months, a balance of 53% of heavy side firms expect a further decrease in sales over the next 12 months. On the light side, a balance of 13% of firms expect a decline, marking the first negative view since the height of Covid-19 disruption in 2020.
CPA senior economist Rebecca Larkin said: “With a recession on the cards for 2023, it should come as no surprise that construction product manufacturers are anticipating a contraction in sales and activity. This combines with the strong rates of input cost inflation that already pervade the supply chain and have begun to delay decision-making on construction projects. Hopefully some of the unanswered questions around the government’s spending plans will be resolved in the coming months and help to lift the cloud of uncertainty hanging over our industry.”
Heavy side products are typically structural materials used early in the construction process and include materials used in transport and other civil engineering projects. Heavy side materials include: aggregates, cement, ready-mix concrete, structural and reinforcing steel. Light side products are typically installed later in the construction process and include internal fittings and services. Light side products include: heating and ventilation systems, plumbing, electrical and lighting, doors and windows, kitchen furniture and thermal insulation.
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