{"id":101328,"date":"2021-11-02T11:37:19","date_gmt":"2021-11-02T11:37:19","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=101328"},"modified":"2021-11-02T11:37:52","modified_gmt":"2021-11-02T11:37:52","slug":"construction-products-manufacturers","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/plant-equipment-supplies-news\/construction-products-manufacturers\/101328\/","title":{"rendered":"Construction products manufacturers defy cost pressures"},"content":{"rendered":"

Despite escalating cost pressures and ongoing supply chain issues, the construction products manufacturing sector expanded for a fifth consecutive quarter in Q3 2021<\/h2>\n

The construction products manufacturing sector expanded for a fifth consecutive quarter in Q3 2021, according to the latest Construction Products Association<\/a>\u2019s State of Trade Survey.<\/p>\n

In Q3, a balance of 44% of heavy side manufacturers reported that sales had increased compared to Q2, whilst on the light side, 26% reported an increase. However, both balances fell from those recorded in the previous quarter.<\/p>\n

Given a strong pipeline of new work in private housing, private housing repair, maintenance and improvement and infrastructure, 56% of heavy side and nearly two-thirds of light side construction products<\/a> manufacturers anticipate further sales growth over the next 12 months.<\/p>\n

The Q3 data, however, showed that cost pressures intensified and broadened from raw materials to fuel, energy and wages & salaries, owing to the recent rise in global gas, electricity and crude oil prices, as well as a shortage of both skilled and unskilled labour.<\/p>\n

Given the strength of demand for construction products and materials, capacity utilisation also increased in the year to Q3, particularly on the heavy side.<\/p>\n

\u2018Manufacturers remain optimistic\u2019<\/h3>\n

Amandeep Bahra, CPA economist, said: \u201cDespite challenging trading conditions stemming Covid-19 and Brexit<\/a>, construction product manufacturers achieved a fifth consecutive quarterly rise in product sales in Q3.<\/p>\n

\u201cMore encouragingly, manufacturers remained optimistic about sales growth over the next 12 months.<\/p>\n

\u201cHowever, the recent surge in global energy and commodity prices have pushed up energy and fuel costs for manufacturers.<\/p>\n

\u201cAll firms surveyed reported an annual increase in fuel costs, whilst the balance citing higher energy costs hit a four-year high for energy-intensive heavy side manufacturers and a nine-year high for light side manufacturers.<\/p>\n

\u201cThis comes as raw materials and wages & salaries continue to put upward pressure on input costs and with a record-high proportion of heavy side firms operating at over 90% capacity, cost pressures<\/a> are unlikely to abate any time soon, especially, as the full impact of rising energy prices is yet to be felt.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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