SEARCH

Construction manufacturers anticipate production rise

The construction products manufacturing sector ended 2018 with a stronger performance than it started with, as manufacturers reported a broad increase in product sales and continued optimism for the industry as it looks ahead to an uncertain 2019.

The Construction Products Association’s State of Trade Survey for 2018 Q4 reveals that product manufacturers reported further increases in sales during the quarter, recovering from the weather-related weakness seen at the beginning of 2018.

For heavy side manufacturers, a balance of 27 per cent of respondents reported that sales increased, while on the light side, half of manufacturers also reported that sales rose, marking the strongest increase of 2018. 

Growth in factory output is anticipated to rise further in the opening quarter of 2019, with 64 per cent of heavy side firms and 38 per cent of those on the light side expecting an increase in sales in the January-March period.

Although manufacturers expect a positive outlook in 2019, cost pressures will likely remain elevated. 90 per cent of heavy side firms and 83 per cent of those on the light side anticipate an increase in costs in 2019, linked to labour shortages driving wages higher, and previous Brexit-related currency fluctuations passing through into price rises for raw materials and fuel.

Rebecca Larkin, CPA senior economist, said: “These results add further evidence that product manufacturing entered 2019 on a strong footing, driven by increased construction activity in the housing and infrastructure sectors. Reading between the lines, given the elevated uncertainty over the government’s Brexit strategy, manufacturers’ sales may have received a boost from precautionary, near-term stockpiling further down the supply chain, and this is also likely to have contributed to the optimism over what is an otherwise hazy outlook.

“Raw materials and wage bills drove input inflation during Q4 and with a large proportion of manufacturers anticipating further cost rises this year, political confirmation of future trading conditions for materials and component imports will help in dispersing some of the uncertainty currently clouding the supply chain’s planning.”

30 January 2019

Comments

Already Registered?
Login
Not Yet Registered?
Register

Xylem supports operation to make Whaley Bridge dam safe

A major disaster was narrowly averted in an operation to prevent the collapse of the dam wall at Toddbrook Reservoir in Whaley Bridge. Xylem Water Solutions UK provided pumps to drain the water and its rapid engineering response ensured a successful ...

  21-Aug-2019

Gilberts thermal control

How do you balance the need to prevent wasted energy, and ensure occupants are comfortable, without having to spend money and time connecting ventilation to building management systems? Gilberts Blackpool has an answer....

  21-Aug-2019

Gastite CSST

A wide range of CSST, fittings and accessories are available for projects both large and small. Suitable for all three family gases, the CSST range includes sizes DN15 to DN50 in a choice of lengths. Custom lengths are available for large/multi-family projects. Contractor kits, which include a length of CSST, and two male fittings are also available. Gastite® high-performance XR2™ fittings have a patented Jacket-Lock® fitting which eliminates exposed steel beyond the nut. The range includes male and female fittings, tees, copper compression fittings and couplings. Accessories designed to make installation even easier are also available and include; cutters, utility knives and jacket repair tape.
  12-Aug-2019
Heating & Ventilating Review is the number one magazine in the HVAR industry. Don’t miss out, subscribe today!
Subcribe to HVR

Diary