Sales of structural materials grew in the second quarter of 2024 for the first time since summer 2022, according to a survey by the Construction Products Association (CPA).
The CPA revealed 30 per cent of manufacturers surveyed reported increasing sales during April to June of heavy-side products – defined as structural materials such as aggregates, cement and steel – when compared to the previous quarter.
And 13 per cent of manufacturers of light-side materials, which tend to be installed later on in the construction process, reported sales growth between quarter one and quarter two..
Rebecca Larkin, CPA head of construction research, said: “After an extended period of declining sales, particularly on the heavy side, encouragingly we are now seeing the green shoots of recovery.”
However, the increase in the quarter’s figures was not enough to affect the year-on-year picture.
A balance of 30% of heavy side manufacturers reported a decrease in sales compared to Q2 last year.
Larkin said this was not a surprised “given the longer-running weakness experienced by product manufacturers feeding into a slower residential construction sector”.
All manufacturers surveyed reported increasing wages and salaries compared with this time last year.
Looking forward, 56 per cent of heavy side and 23 per cent of light side manufacturers expected more sales over the coming months.
Larkin said that interest rates cuts were likely to spark a recovery in private housing construction and repairs, maintenance and improvement, although challenges remain on both the supply and demand sides.
She said: “After an extended period of declining sales, particularly on the heavy side, encouragingly we are now seeing the green shoots of recovery.”
The mixed picture for materials firms was echoed in a half-year trading update issued this morning (12 August) by Marshalls, which produces both heavy-side products such as concrete and aggregates and light-side products such as paving and solar panels.
