Industry hit by fuel increases

High energy prices are reducing margins and pushing up tender prices according to the latest industry survey from the Construction Products Association and the Construction Confederation.

Despite that, construction output continued to recover during the third quarter, largely thanks to higher commercial and industrial output, plus more civil engineering work. But the recovery in government-funded projects proved short-lived.

Heavy-side product sales rose particularly as a result, while light-side firms saw an increase in sales volume through greater exports. Manufacturers expect subdued growth over the next year.

[Contract Journal, 1 November 2006, p 1]