Despite escalating cost pressures and lingering supply chain issues, the construction products manufacturing industry grew for a fifth consecutive quarter in the third quarter of 2021
The construction products manufacturing sector advanced for a fifth consecutive quarter in the third quarter of 2021, according to the latest Association of construction productsState of trade survey.
In the third quarter, 44% of heavy-duty manufacturers said sales were up from the second quarter, while on the light side, 26% reported an increase. However, both balances were down compared to those recorded in the previous quarter.
Given a strong pipeline of new work in private housing, repair, maintenance and improvement of private housing and infrastructure, 56% of manufacturers of heavy-wall construction products and nearly two-thirds of manufacturers Light-wall construction products forecast further sales growth over the next 12 months.
Data from the third quarter, however, showed that cost pressures have intensified and spread from raw materials to fuel, energy and wages and salaries, due to the recent rise in global gas prices, electricity and crude oil, as well as a shortage of skilled and unskilled labor. Workforce.
Given the strong demand for building products and materials, capacity utilization also increased during the year through the third quarter, particularly on the heavy side.
“Manufacturers remain optimistic”
Amandeep Bahra, CPA economist, said: “Despite difficult business conditions linked to Covid-19 and Brexit, manufacturers of construction products recorded a fifth consecutive quarterly increase in product sales in the third quarter.
“More encouragingly, manufacturers remained optimistic about sales growth over the next 12 months.
“However, the recent surge in global energy and raw material prices has pushed up energy and fuel costs for manufacturers.
“All of the companies surveyed reported an annual increase in fuel costs, while the rest citing higher energy costs reached a four-year high for energy-inefficient heavy panel makers and a nine-year high for panel makers. light.
“This comes as raw materials and wages and salaries continue to put upward pressure on input costs and with a record proportion of heavy companies operating at over 90% of their capacity, it is cost pressures are unlikely to abate anytime soon, especially since the full impact of rising energy prices is yet to be felt.