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UK sales volumes of construction products decline in 1Q13

World Cement,

The UK’s Construction Products Association has released the results of its State of Trade Survey for 1Q13. The survey found that construction products sales volumes declined during the period, as the industry was hit by bad weather conditions. Highlights from the report include:

  • Export sales increased q/q, rising by 21% and 15% for light and heavy side firms, respectively.
  • Light side and heavy side sales volumes fell both y/y and q/q.
  • On balance, light and heavy side product manufacturers expect sales levels to recover in 2Q13.
  • It has been predicted that sales growth will be hampered by low demand in 2013, with some citing raw material prices as a further constraint.

“The poor weather in January and March certainly had an adverse affect on sales in Q1, with sales of heavy side products falling for the fourth consecutive quarter with 39% of firms reporting a fall in sales. Despite seeing a rise in light side sales in Q4, volumes were once again lower both on a quarterly basis and compared to a year ago”, said CPA Economist Milja Keijonen.

“It is not all doom and gloom however, as both heavy and light side manufacturers anticipate a catch-up in sales in Q2 as improving weather conditions kick-start infrastructure and housing projects. Furthermore, a growth in sales is expected over the next 12 months. In addition, export sales continued to grow in Q1, with 15% of heavy and 21% of light side manufacturers reporting increased export volumes compared to Q4. Overall, 2013 is likely to be a challenging year for the industry but there are areas of optimism among the dark clouds.”

Adapted from press release by Louise Fordham.

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