Products sector confident about 2003

Construction Products Association (CPA) members remain optimistic about the year ahead despite poor weather putting a dampener to the end to 2002.

According to the CPA's latest State of Trade survey, the prospects for the industry are critically dependent on the delivery of promised increases in government investment in infrastructure and built environment, particularly in view of the expected slow down in private sector activity due to the current uncertain economic and political climate.

Commenting on the survey, Allan Wilén, economics director, said:  "2002 was a good year for manufacturers and suppliers with an estimated volume increase of between 3% and 4% on average across the construction products industry.

"This compares with an 8% rise recorded by DTI in construction output as a whole. The impact of the global slowdown on overseas trade, introduction of the aggregates tax, and changes in the construction workload mix have all conspired to moderate sales growth over the last year.

"And a widening in house builders margins, due to the sharp rise in house prices, has added to the increase in construction output volumes," he said.

Wilen added that the industry anticipates further sales growth in 2003 with a quarter of firms anticipating an increase of more than 5% in their first quarter sales compared to a year ago, with almost 38% signalling a rise of more than 5% over the full year.