Prospects Still Good for Construction

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• Prospects Still Good for Construction

The Construction Product Association’s (CPA) State of Trade Survey for the third quarter of 2015 indicates construction product manufacturers’ sales increased for a tenth consecutive quarter. 

It acknowledged that growth was held back by weakness in exports but manufacturers continued to be optimistic over prospects for the next 12 months. 

The survey findings included: 

• A balance of 27% of heavy side firms and 67% of light side firms reported that sales rose during the third quarter of 2015, compared to a year earlier.
• 64% of heavy side product manufacturers and 79% of light side product manufacturers reported that they anticipate a rise in total sales over the coming year.
• 27% of heavy side firms and 36% of light side firms anticipate a rise in exports over the next year.
• 40% of heavy side firms and 33% of light side firms reported operating at over 90% capacity over the last 12 months.
• 77% of heavy side firms and 33% of light side firms increased investment in plant and equipment in Q3.
• 53% of heavy side firms and 33% of light side firms anticipate increasing employment over the next 12 months.

“We have now seen 10 quarters of sustained growth reported by construction product manufacturers, led by demand from the private housing, industrial and infrastructure sectors,” explained Rebecca Larkin, Economist, CPA. “As firms increase production, a growing proportion of manufacturers reported operating at 90% capacity or above in Q3. In response, manufacturers reported increased investment in plant and equipment as well as their labour force. A further increase in investment and hiring intentions for the next 12 months signals widespread confidence over the longer term outlook.”

Picture:   Prospects are still looking good in the UK construction sector according to the CPA.

Article written by Mike Gannon

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