The Construction Products Association has released their State of Trade survey for Q2 2024, detailing promising results for the future
The State of Trade survey for Q2 2024 has been released by the Construction Products Association and shows a generally optimistic picture.
Both heavy and light side firms report an increase in quarterly sales volumes, with 30% of heavy side and 13% of light side manufacturers reporting an increase. For the heavy side, this is the first growth in two years.
State of Trade shows there are still difficulties
Although this sounds positive, compared to Q2 of 2023, the picture is a little more bleak.
30% of heavy side manufacturers have reported a decrease in sales from the previous year.
The last two years have seen low GDP growth, coupled with high interest rates to combat UK inflation. This is reflective of the low demand of new houses, and repairs, maintenance and improvement (RM&I).
Yet the outlook remains positive
Despite the last two years, those surveyed in the State of Trade are mostly optimistic about the future, with the governments plans for house building and reduction in interest rates meaning an increase in demand and therefore sales.
Rebecca Larkin, CPA head of construction research, said: “After an extended period of declining sales, particularly on the heavy side, encouragingly we are now seeing the green shoots of recovery. For the heavy side this was the first quarterly growth recorded in two years and given this context, it is perhaps not surprising that sales volumes were still reported lower when comparing to a year earlier given the longer-running weakness experienced by product manufacturers feeding into a slower residential construction sector.
“Whilst cuts in interest rates are expected to be the catalyst for a recovery in the two largest sectors of construction, private housing and private housing RM&I, manufacturers continue to highlight both demand-side and supply-side challenges. In common with construction, one of the industry’s biggest longer-term issues will be attracting and retaining workers.”
