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The Construction Products Association’s latest state of trade survey shows that volumes improved in the third quarter, compared to Q2, but heavy products are still down on 2024.
In 2025 Q3, a net balance of 20% of heavy side manufacturers and 29% on the light side reported an increase in product sales, compared to Q2. Both were relatively weak balances for the year so far, but for the heavy side, a greater weakness was evident when comparing sales to 2024 Q3, the CPA said. A balance of 7% of firms reported that sales had declined in annual terms. However, light side firms continued to report annual growth, according to a 57% of firms, on balance
The survey indicates that 2025 overall will see no market recovery, with 78% of heavy side manufacturers anticipating that sales would be flat in Q4 and 17% of light side firms anticipate a fall in sales in Q4
The survey also showed that manufacturers are facing continued cost inflation. Wages & salaries, raw materials and energy costs were all reported higher in Q3. Taxes were the primary cost increase for heavy side manufacturers, indicating that the rise in employer national insurance contributions in April has also been a significant driver of input cost inflation.
Rebecca Larkin, CPA head of construction research, said: “The prospect of a quick recovery appears unlikely, given that the majority (78%) of heavy side firms anticipated that sales will remain flat in Q4 and 17% of light side firms anticipated that sales would fall, marking the first negative balance in two years. Weak growth in heavy side sales reflects fewer construction project starts, which now seems to be leading to smaller pipelines of work at the finishing stages too. Speculation and concern around what measures will be announced in the autumn budget later this month and, crucially, where the burden of any tax rises will fall, is playing on the minds of all firms in the construction supply chain and prolonging a climate of uncertainty that means a recovery is only likely to begin in 2026.”
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