Light side construction products showed growth for a ninth quarter in succession while increases in energy, fuel and materials costs continue to add uncertainty to the immediate future, according to the Construction Products Association’s latest State of Trade Survey for the last quarter.
For light side manufacturers 44% reported that product sales rose, which extended a run of growth that began in 2020 Q3.
Looking to the next 12 months, 46% of heavy side manufacturers and 47% of light side firms anticipated a rise in sales, although with demand cited as the key constraint on manufacturers’ near-term activity and continued inflationary pressure reported across a broad base of fuel, energy, raw materials and labour costs, the outlook remains tinged with uncertainty.
Rebecca Larkin, CPA head of construction research said: “Interior and fit-out work that focuses more on light side products was able to continue largely unhindered and demand remains strong in any case, underpinned by large offices and commercial refurbishment projects.
“In terms of the economy, there was greater stability in Q1 following the post-Mini Budget turmoil at the end of 2022, which has improved manufacturers’ views for the 12 months ahead. Reflecting on the contrast with stagnancy in heavy side products, she added: “The split in fortunes across construction is likely to continue, however, with housing and other consumer-focused sectors set for a struggle against a backdrop of falling real incomes and interest rate rises, whereas larger-scale refurbishment activity continues to be driven by energy efficiency considerations and new models of hybrid home-office working.”
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