Building products sales decline

Published:  10 November, 2010

LONDON: Building product sales fell during the third quarter of this year according to the latest Construction Trade Survey published today.

It found 10% of light side manufacturers and 29% of heavy side manufacturers endured a fall in sales. Prospects for the remainder of 2010 are "looking increasingly unsure" the association said.

Noble Francis, economics director at the Construction Products Association that produced the survey, said the environment for contractors and product manufacturers is still "extremely challenging".

"The cuts announced in the CSR will inevitably have considerable consequences for the industry over the next two years," he said.

"Although product manufacturers enjoyed a rise in sales in 2010 Q2, boosted by restocking, this was not replicated in Q3 and sales of both light side and heavy side products fell.

"Despite a number of high profile contracts being let within the commercial offices sub-sector in central London, 71% of contractors, on balance, reported that order books fell in the third quarter. Of great concern, in the light of the CSR, 67% of contractors, on balance, reported that order books fell in the third quarter in public non-housing, which covers education and health construction," Mr Francis said.

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