Member Article

Manufacturers benefit from increased exports

Manufacturers are benefiting from an increase in exports, offsetting the subdued level of construction activity in the domestic market.

The Construction Products Association’s latest State of Trade survey, shows that particularly light manufacturers (34%) recorded growth in overseas sales during the past year.

A further 55% had managed to maintain export levels in a competitive global marketplace.

Within heavy manufacturing, 17% had recorded overseas growth, and 77% had maintained levels.

Kelly Forrest, Construction Products Association senior economist, said: “Against a difficult domestic backdrop, it is encouraging to see that exports are growing strongly, especially considering that export growth is a fundamental part of the government’s economic strategy.

“Furthermore, construction product manufacturers have invested heavily in developing trade links beyond the eurozone and, in Q4, 35% of light side manufacturers with export links sold products into the Asian market, a very high proportion by historical standards.

“Future prospects for the UK industry, however, remain very uncertain, as cuts to public sector capital budgets impact on the ground and weak economic growth constrains the private sector recovery.

“Strong input cost inflation also added to the pressures on manufacturers as price increases in raw materials, energy and fuel all had a significant impact on manufacturing costs.”

Elsewhere, -22% of heavy side manufacturers, on balance, reported that sales fell in Q4, and 35% reported no change in activity.

Although in contrast +22% of light side manufacturers reported sales growth in Q4.

Kelly went on to say that cuts to public sector capital budgets were having a tangible impact on the industry, and demand from the eurozone remained uncertain.

81% of light side manufacturers expressed concern about the strength of future demand.

This was posted in Bdaily's Members' News section by Tom Keighley .