Know what you want? Try our 'Supplier Directory' 

Manufacturers optimistic for year ahead despite weakness in exports


According to the latest State of Trade Survey from the Construction Product Association (CPA) for the third quarter of 2015, construction product manufacturers’ sales increased for a tenth consecutive quarter.


However, growth was held back by weakness in exports, but manufacturers continue to be optimistic over prospects for the next 12 months. 


A balance of 27% of heavy side firms and 67% of light side firms reported that sales rose during the third quarter of 2015, compared to a year earlier. Exports decreased for 18% of heavy side firms and rose for 14% of light side firms.


64% of heavy side product manufacturers and 79% of light side product manufacturers reported that they anticipate a rise in total sales over the coming year. Meanwhile, 27% of heavy side firms and 36% of light side firms anticipate a rise in exports over the next year.


40% of heavy side firms and 33% of light side firms reported operating at over 90% capacity over the last 12 months. 77% of heavy side firms and 33% of light side firms increased investment in plant and equipment in Q3. 53% of heavy side firms and 33% of light side firms anticipate increasing employment over the next 12 months


CPA Economist, Rebecca Larkin, said: “We have now seen ten quarters of sustained growth reported by construction product manufacturers, led by demand from the private housing, industrial and infrastructure sectors.”


“On the downside, compared to a year earlier, 27% of heavy side firms and 67% of light side firms reported a rise in sales in Q3. These balances were lower than those reported in Q2 and the lowest for the heavy side firms since 2013 Q2. This decline largely reflects a decrease in export sales experienced by heavy side manufacturers as Sterling has continued to appreciate against the Euro throughout late 2015; however, the fact that heavy side product sales occur at the beginning of the building process may also foretell a slowdown in domestic construction activity.”


She continued: “Despite this, product manufacturers retain a positive outlook for the next 12 months. Most survey respondents – 64% of heavy side manufacturers and 79% of those on the light side – anticipate that product sales will increase over the next year, with expectations of renewed growth in international sales combining with rising demand from the domestic market.


'As firms increase production, a growing proportion of manufacturers reported operating at 90% capacity or above in Q3. In response, manufacturers reported increased investment in plant and equipment, as well as their labour force. A further increase in investment and hiring intentions for the next 12 months signals widespread confidence over the longer-term outlook,” Ms Larkin concluded.



The IOR Annual Conference – a conference on-demand

Delegates to the IOR Annual Conference taking place from 21 to 22 April will get the chance to access the event live and all sessions and recordings for up six months afterwards providing fantastic value and allowing anyone registering for the event ...


The drive for effective decarbonisation – Daikin’s VRV R32 heat recovery solution

To drive the decarbonisation of buildings forward, new systems should reduce both the direct and indirect CO2eq impact. Daikin has focussed on maximising operational efficiency in real life conditions, minimising the impact. The new solution ...


If you need to open a solenoid valve manually, you need a SVOM!

"THE SMALL TOOL WITH A BIG ATTRACTION" Available from Refrigeration Wholesalers If you would like to become a distributor please contact
ACR News is the number one magazine in the air conditioning and refrigeration industry. Don’t miss out, subscribe today!
Subcribe to ACR News


IOR London Dinner