Building products sales slump
Published: 02 October, 2012
LONDON: Sales of building products slumped in the last quarters says the Construction Products Association in its latest State of Trade Survey.
Noble Francis, the association's economics director, said: "Both heavy and light side manufacturers endured a fall in sales during the third quarter.
"Light side manufacturers had until recently enjoyed growth in export sales, offsetting the impacts of falls in domestic demand. Yet, export sales fell during the third quarter, adversely affected by euro zone uncertainty and global economic slowdown."
"With the Autumn Statement approaching in a couple of months and every £1 in construction generating £3 for the wider economy, it is vital that the chancellor focuses on capital investment in 'shovel ready' repair and maintenance projects that are quick to get off the ground with framework contracts and planning already in place," he said.
- 20% of heavy side firms and 41% of light side firms reported that sales fell between Q2 and Q3.
- 35% of heavy side manufacturers and 12% of light side manufacturers, on balance, reduced employment in the year to Q3.
- 15% of heavy side manufacturers and 6% of light side manufacturers, on balance, anticipate that employment will fall further over the next 12 months.
- 50% of heavy side manufacturers and 29% of light side firms stated that costs had risen in the third quarter compared to a year ago.