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[August 2003]
Mixed Fortunes for Construction Product Manufacturers
Amidst what it describes as increasing concern at the pace of the British government's new infrastructure investment, the Construction Products Association (CPA) says that construction output growth has slowed sharply since the start of 2003, this news carried in its latest Trade Survey. Moreover, product manufacturers' expectations for the third quarter are somewhat mixed with 75% of light side concerns expecting a further rise in sales volumes, but just 25% of heavy side concerns expecting sales to rise.
Commenting on the survey, CPA Economics Director Allan Wiln said: "Whilst construction product sales rose during the second quarter, with on balance over half of surveyed firms reporting an improvement on the previous three months, the year on year improvement has been more modest, with only a quarter of firms on the heavy side reporting higher sales volumes.
"The slowdown in sales growth has resulted from a weakening in private sector construction activity, at a time when the industry remains concerned by the slow pace at which promised Government investment is feeding through to work on site. Recent events have shown that the nation's infrastructure is urgently in need of improvement and Government must move to fast track projects, such as the road improvement schemes identified in the multi-modal studies, in order to ensure the prompt delivery of this much needed investment, an issue that will be highlighted in the Association's updated report 'Achievable Targets? Is Government Delivering?' to be published at the end of September."
ENDS