Construction products industry is buoyant

The Construction Product Association's (CPA) latest trade survey reveals a buoyant construction products industry, with almost two-thirds of surveyed firms reporting sales up on the preceding three months and 25% reporting volumes rising by over 5%.

Commenting on the survey, CAP economics director Allan Wilén said: "Construction product manufacturers have enjoyed a pick up in sales since the new year as contractors make up for ground lost to poor weather during the closing months of 2002. Despite the recovery, however, sales volumes failed to match those of the first quarter of 2002, especially for heavy side firms, many of which saw their sales temporarily boosted a year ago by advance sales ahead of the aggregates tax.

"There is also continuing optimism as manufacturers anticipate sustained growth over the next 12 months, with 30% of firms expecting sales to increase by more than 5%. On a cautionary note, with private sector demand forecast to cool, growth will be crucially dependent upon the timely delivery of the government's investment plans," added Wilén.

Product improvement and customer research remain priority areas over the next year, although a growing proportion of firms intend to spend more on plant and equipment, said CPA.