State of Trade Survey released by the CPA

Increase in Q2 sales reported and confidence for the future is high.

The Construction Products Association (CPA) has released its latest State of Trade Survey for Q2 2015 and the results are welcome for the industry.

Amongst the many positive aspects of the survey, it shows that both heavy side and light side construction product manufacturers reported sales growth in the second quarter.

This is the ninth successive quarter that both have reported a growth in sales and shows that manufacturers are benefiting from economic growth and a recovery in construction output.

For heavy side construction firms, 83% have said sales have increased from those reported in the first quarter of the year, and for light side firms, the figure is 40%.

The figures in the survey are also favourable when compared with the corresponding quarter of last year. 78% of heavy side firms reported an increase and 73% of light side firms did the same.

In addition to the buoyant sales increase reported in the State of Trade Survey, manufacturers are confident that there will be further growth in the next 12 months. Figures show that 67% of heavy side manufacturers and 57% of light side manufacturers expect more growth to be recorded in the next quarter.

The numbers are 78% and 50% for heavy and light side respectively about expectations of an increase in sales.

Confidence extends to the fact that no heavy side firms surveyed believing that there will be a drop in sales in the next 12 months.

The evidence of such a sustained increase in sales can be seen by the fact that manufacturers are increasing production and also absorbing spare capacity.

In the second quarter of the year, 33% of heavy side manufacturers are operating at a capacity higher than 90% which is an increase of 13% from Q1.

Furthermore, over the next 12 months, 31% of light side and 44% of heavy side manufacturers are expecting to be operating at more than 90% of capacity.

Investment in plant and equipment is on the rise, and 72% of heavy side manufacturers envisage this to increase in the next 12 months, with half of light side manufacturers feeling the same.

The prolonged period of growth has also resulted in an increase in employment, with 89% of heavy side manufacturers reporting higher staff numbers than at the same time last year.

For light side manufacturers, this number is 47% and it is further evidence from the State of Trade Survey that the industry can look forward confidently to the future.

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