Construction material sales decline continues into 2020

Sales of key building materials have fallen sharply for seven consecutive quarters, according to industry groups.

Construction Products Association (CPA) latest Trade status survey showed that 36% of heavy goods manufacturers saw a decline in production in the first three months of 2024.

This continued the decline in sales of materials such as aggregate, cement, and structural steel that began in summer 2022.

There was good news for manufacturers of light-side products such as heating systems, doors and kitchen cabinets, with sales volumes increasing by almost a quarter in the most recent period.

These items will likely be used indoors to counteract the impact a wet spring has had on outdoor construction activity.

According to CPA, demand for light side products is also driven by commercial and industrial renovation projects.

Efforts to make public housing energy efficient have brought further benefits to the sector.

Looking ahead, CPA said four out of five heavyweight companies expect sales to have turned a corner and start increasing next year.

More than half of the light-side companies surveyed were optimistic, but expected cost pressures to increase more than heavy-side companies.

Wages for manufacturers of small products rose more sharply than prices of other inputs, while manufacturers of large components reported that fuel costs contributed the most to inflation.

certified public accountant Last month’s forecast Construction output is projected to decline by 2.2% in 2024, with private residential construction more than double that decline.