According to the latest Construction Products Association “State of the Trade” survey, construction product manufacturers have reported continued growth in the sale of building supplies and materials in the first quarter of 2015 and report there is high levels of confidence in the sector for the next 12 months.


The Construction Products Association report indicates this is the eighth quarter of consecutive growth in the sale of construction products according to manufacturer’s supplying the construction industry.


The news is positive with strong growth for heavy side construction product manufacturers compared to a marked, if slightly slower growth experienced by light side construction product manufacturers, suggesting we’re still waiting for the benefits of the recovery to fully trickle down to the smaller construction firms.


There was a reported drop off in the export of UK construction products which hit the heavy side more than the light side however most construction product manufacturers believe there will be a bounce back and construction product exports will again rise over the next year.


Construction Products Association economist Rebecca Larkin said: “Product manufacturers opened 2015 with another positive quarter of sales growth, which underscores how the strength of the UK economy over the last 18 months has translated into increased activity in the construction sector.


“A rise in first quarter sales was reported by 50% of heavy side firms and 29% of light side firms, compared with the same quarter a year earlier. Some weakness in external demand was noted, as the strong sterling hindered exports to the eurozone. Nevertheless, further growth in sales is anticipated over the next 12 months by 69% of heavy side firms and 57% of those on the light side, underpinned by demand both at home and abroad.


“Developments in the global economy have benefited firms on the cost side, however. Wages and salaries have been the key driver of cost inflation since 2014, but from the end of last year, this has been partly offset by the impact of lower oil prices, which averaged $64 per barrel in Q1. Registering the sharpest negative balance seen in the survey, fuel prices fell for 86% of heavy side manufacturers and 83% of light side firm in the period. Firms also reported falling energy and import costs, on balance.


“Encouragingly, product manufacturers appear keen to capitalise on this sustained period of activity and shore up demand in the longer-term. Priority areas for investment over the next 12 months, cited by more than two-thirds of firms, were product improvement, research and development and e-business.”


In line with this survey, as a builders merchants in Longridge selling quality construction products to tradespeople and building firms throughout the UK, we’ve seen a growth in the sale of building supplies over the same period, with steady growth rates which we’re confident will gain momentum, as the benefits of the recovery trickles down to property owners and SMEs, in turn stimulating construction output and demand for both heavy and light side construction products.