Heavy building materials sales slowed as the decline began
The most recent Business State Survey, conducted by the Building Products Association,
reports growth in sales of light building products but declines in heavy materials such as brick and concrete.
As new construction slows and industry efforts focus more on improving existing buildings to reduce energy bills,
light-side manufacturers are expected to continue to benefit more than heavy-side manufacturers, according to their trade association.
The Building Products Association’s (CPA) State of Trade survey for the fourth quarter of 2022 saw a net balance of 20% of heavy-sided manufacturers reporting lower sales.
This marked a decrease in the second consecutive quarter, and in contrast,
the net balance of 27% of the manufacturers of the light side reported that product sales had increased,
extending the growth chain to 10 consecutive quarters.
Overall, a third of heavy-side companies, whose products tend to fuel the early stages of construction,
expected a decline in sales over the next 12 months.
On the light side, 8% of companies expect an increase in sales in 2023.
Heavy building materials sales slowed
Rebecca Larkin, head of research for the CPA, said:
“It was a mixed bag for building products manufacturers at the end of last year,
with demand in some areas of construction taking a hit due to renewed economic uncertainty after the Truss government’s budget cuts, plus early signs pointing to that.
Historically high inflation has hampered household spending and business investment decisions.
This primarily affected heavy-side manufacturers,
who experienced a decline in sales of products that are typically used in the early stages of construction with weak demand and confidence to start a new construction project.
Sales growth for light side manufacturers continued in the fourth quarter, however,
likely to be supported by areas of construction that continue to see strong activity, i.e. office renovation and energy efficient retrofitting such as insulation measures.”
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