CPA State of Trade Survey Indicates Mixed 2024 Q1

It was a mixed quarter for construction product manufacturing in 2024 Q1, reflecting the varying demand in the different sectors of the construction industry that manufacturers’ products feed into. Sales declined for a seventh consecutive quarter for heavy side manufacturers, whose products are typically used in the earlier, structural stages of construction. Along with lower house building activity and fewer large home improvement projects, persistent rainfall in February and March is likely to have affected outdoor work and heavy side demand during the quarter.

Key survey findings include:

• 36% of heavy side firms reported that sales fell in 2024 Q1, the seventh consecutive quarterly decline
• Sales rose for 24% of light side firms, swinging back to growth after two quarters of decline
• 79% of heavy side manufacturers and 59% of those on the light side expect sales to increase over the next 12 months
• Demand remains the factor most likely to constrain output in the year ahead
• Cost inflation continued to moderate for heavy side firms, but light side firms reported cost pressures from wages & salaries