Heavy materials sales fall amid slowdown in starts

Aaron Morby 1 year ago
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Heavy side product producers have reported a second quarter of falling sales impacted by a slide in project starts.

But light side product sales have held up supported by later use in project programmes and refurbishment and activity for energy-efficient retrofits continuing apace.

The split in fortunes was revealed in the Construction Products Association’s latest State of Trade Survey for the last quarter of 2022.

Around 20% of heavy side manufacturers reported that sales of construction products declined, while in contrast, 27% of light side manufacturers reported that product sales rose, which extended a run of growth to 10 straight quarters.

The suppliers mixed fortunes are also reflected in the outlook for the year ahead where on balance, one-third of heavy side firms anticipated a decrease in sales over the next 12 months.

On the light side, a balance of 8% of firms anticipated a rise in sales during 2023.

Fuel, energy and raw materials costs rose for all heavy side manufacturers

Overall costs are expected to increase over the next year according to balances of 69% on the heavy side and 62% on the light side, the lowest balances since mid-2020

Rebecca Larkin, CPA Head of Construction Research, said that the Q4 survey highlighted the varied demand within construction sector but added to the signs pointing to a slowdown in activity across new build or sectors that were driven by consumer or business confidence, which would be partially offset by higher levels of activity on commercial refurbishment and energy efficiency improvements.

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