The Construction Products Association’s state of trade survey for the fourth quarter of 2024 showed a third consecutive quarter of growth in manufacturers’ sales and a general of continued growth in the year ahead.
In Q4 2024, a net balance of 25% of heavy side manufacturers reported that sales of construction products had increased compared to Q3, and a net balance of 31% of light side manufacturers reported a rise in product sales. The heavy side also recorded the first annual growth since Q3 2022.
Both heavy and light side manufacturers anticipate continued growth in 2025 despite rising wage and raw material costs. All heavy side manufacturers reported an increase in wages/salaries and raw materials costs in Q4. All heavy side manufacturers and 93% of those on the light side expect costs to increase further over the next 12 months, the survey found.
Construction Products Association head of research Rebecca Larkin said: “Our surveys have shown three quarters of sales growth across product manufacturers, which appears to confirm that demand from construction is progressing from stabilisation into the recovery phase. The pickup expected in the two largest sectors of construction – private housing new build and repair, maintenance and improvement (RMI) – no doubt underpinned expectations of that recovery gaining pace throughout 2025.
“The inflationary backdrop suggests there will be some headwinds, however. Wages and raw materials were reported as the key drivers of input cost inflation in Q4 and although manufacturers anticipate increasing headcount to respond to the pickup in demand and sales this year, they will also have to contend with the higher costs of doing so when employer National Insurance Contributions are raised in April.”
Last week the CPA published its 2025 Winter Forecasts, predicting total construction output growing by 2.1% in 2025 and 4.0% in 2026. This was a downward revision compared to its previous quarterly forecast in autumn 2024, which predicted 2.5% growth in 2025 and 2.8% in 2026.
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