Sector boosted by rising sales and falling fuel costs
State of Trade Survey indicates manufacturers of construction products ended year with continued growth in sales
THE Construction Products Association’s latest State of Trade Survey for the fourth quarter of 2014 indicates that manufacturers of construction products ended the year with continued growth in sales and with a further increase in sales expected for the year ahead.
Key points of the survey include:
- 44% of heavy side firms and 87% of light side firms reported that sales rose during the fourth quarter of 2014
- 61% of heavy side product manufacturers and 60% of light side product manufacturers reported that they anticipate sales rising over the coming year
- 33% of firms on both the heavy and light side reported that costs rose in the fourth quarter compared with a year earlier
- Fuel costs fell for 61% of heavy side firms and 20% of light side firms, to the lowest balance ever recorded in the survey.
Construction Products Association economist Rebecca Larkin said: ‘The latest survey results reflect the fact that the recovery in construction is broadening from private housing to commercial, industrial and infrastructure. Growth in sales of construction products was reported by both heavy side and light side manufacturers, suggesting increased activity at all stages of the building process.’
According to the survey, firms also increased their headcount in the 12 months up to the fourth quarter in response to these higher sales and reflecting the positive outlook going forward. Moreover, hiring intentions for the coming 12 months remain strong with 61% of heavy side firms and 40% of light side firms planning to increase employment in 2015.
Rebecca Larkin added: ‘In addition to rising demand, manufacturers’ optimism was no doubt boosted by receding cost pressures. The downward shift in global oil prices reduced fuel costs for the majority (61%) of heavy side firms in the fourth quarter, the first negative balance recorded in the survey.’
