According to the latest State of Trade Survey from the Construction Products Association (CPA) released today, sales of construction products rose in Q4, driven by wider UK economic growth and key private construction sectors, together with strength in export markets.
In addition, product manufacturers are anticipating further growth in sales, both domestically and abroad, over the next year.

The CPA's economics director, Dr Noble Francis, said: 'In previous surveys, private housing was the key driver of domestic demand; however, Q4 has seen construction growth spread to other key sectors such as private commercial, the largest construction sector and infrastructure.

'Demand for exports picked up in the second half of 2013 and manufacturers anticipate exports rising further in 2014, primarily due to wider economic recovery in key export markets combined with the relatively low value of sterling. As a consequence, a rise in product sales during Q4 occurred for the majority of manufacturers, across both heavy and light side products.'

He continued: 'Importantly, manufacturers reported that, overall, capacity is not a significant issue and is unlikely to be during 2014 despite an expected rise in demand.

'Of concern, however, manufacturers reported margins continue to be severely hindered by cost rises, especially in energy and transport fuel. In addition, manufacturers also reported that labour costs and materials costs rose in the fourth quarter.'

The survey also found that 67% of both heavy and light side manufacturers reported an increase in sales compared with the third quarter. In addition, 61% of heavy side manufacturers and 67% of light side manufacturers reported that sales rose in Q4 compared to one year earlier.

For 2014 as a whole, 73% of heavy side manufacturers and 85% of light side manufacturers are anticipating a rise in sales. On the export side, 45% of heavy side manufacturers and 58% of light side manufacturers anticipated that exports would increase in 2014.

Over the next 12 months, 24% of heavy side and 25% of light side firms are anticipating that they will be operating at 90% capacity or above.