Product manufacturers report spike in sales

All construction products firms have reported a rise in sales in the second quarter of 2014, compared with the same period in 2013.

A balance of 100% of the respondents to the latest Construction Products Association State of Trade Survey reported a rise in sales in the second quarter of 2014, compared with the second quarter of 2013.

It is the fifth quarter in which year-on-year sales have increased, according to the survey.

It also found that 83% of product manufacturers were expecting sales to rise over the coming year and 65% felt they would rise by over 5%.

However, the survey also found that costs were also increasing with 87% of firms reporting rising costs, largely driven by wages.

Kallum Pickering, senior economist at the Construction Products Association, said the figures showed the industry was “firmly on the path of recovery”.

He said: “All firms reported that sales increased compared with the second quarter of last year and, looking forward, no firms expect sales to fall over the coming year. These findings fall in line with the recent broadening of growth across private construction.

“There are clear signals that firms are looking to capitalise on the positive growth outlook. Both heavy side and light side firms reported that capital investment increased across all areas of business and, investment intentions over the next 12 months were equally positive.”