Construction product manufacturers expect sales to grow in second quarter and over next 12 months
THE Construction Products Association’s latest State of Trade Survey indicates that sales of construction products rose in the first quarter of 2014 and are expected to rise even further during the second quarter and over the next 12 months.
Dr Noble Francis, economics director at the Construction Products Association, said: ‘Construction product sales have risen for the fourth consecutive quarter. More than three-quarters of product manufacturers, on balance, reported sales rising in the first quarter 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 the second quarter and over the next year, again due to growth in housing, commercial and infrastructure. As a consequence, 86% of firms, on balance, expect sales to rise in the next 12 months.’
According to the survey, the key concern for manufacturers in the first quarter was rising costs. Sixty five percent of heavy-side manufacturers reported that costs rose compared with a year earlier, due to energy and transport fuel costs, and exacerbated by more recent rises in wages and salaries.