Material Manufacturers in UK Report Production Growth

The Construction Products Association has published a report on trade volumes in the UK building manufacturers.. According to the results, the construction sector has shown growth for the third consecutive quarter. But what are the reasons behind this growth, and what does the future hold for the construction industry?

The main source: Materials producers move into recovery phase

The Current Situation in the Industry

According to the company’s report, in Q4 2024, over 25% of large companies and 31% of small companies reported an increase in sales of their products and services compared to Q3 of the same year. Additionally, large companies recorded their first annual growth since Q3 2022. This was driven by several factors, the main ones being the easing of pandemic-related burdens and government subsidies for housing construction programs.

Among the challenges, construction companies highlight rising raw material costs and increasing wages. Nevertheless, next year, companies plan to continue raising wages and are already prepared for the rising costs of raw materials.

How Will It Influence Manufacturers in the Future?

Despite the challenges mentioned above, companies expect the upward trend to continue. According to a survey conducted among industry representatives, more than 93% of respondents anticipate growth in 2025.

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 stabilization 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 underpin 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.”

Fencyx, as one of the leaders in the UK construction industry, also notes the continued positive market dynamics. We have considered all potential risks that may affect the company and likewise forecast a sustained growth trend.

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