CPA – State of Trade Survey – July 2022

Date Published

3 October 2022

Document Type

Category

Audience

Author

TDUK
Summary

Construction product manufacturers recorded an eighth consecutive quarter of sales growth in the second quarter of 2022. However, the balances of respondents reporting a rise were the lowest since the industry’s run of growth began following nationwide Covid-19 lockdowns in the second quarter of 2020. Furthermore, forward-looking indicators in the survey point to a weakening over the next 12 months as public and private sector clients, as well as households undertaking improvements projects, are affected by rapidly rising inflation.

Key Information

• 30% of heavy side firms and 17% of light side firms reported that sales rose in Q2, the lowest balances since 2020 Q2
• Sales expectations weakened, with one-third of heavy side firms expecting sales to fall over the next 12 months, on balance
• Inflationary pressures remained intense and broad-based, across raw materials, fuel, energy and wage costs
• Demand was cited as the factor most likely to constrain output in the year ahead
• Hiring intentions balances weakened for both heavy side and light side manufacturers

Case studies

Acharacle is a small and remote community on the south-west tip of Loch Shiel, some 40 miles west of Fort William. For many years the village had campaigned for a new primary school and community space to replace the old Victorian buildings, which were becoming difficult and expensive to maintain.

The new visitor centre replaces facilities – community room, shop, restaurant and exhibition areas – formerly housed in buildings which have now been redeveloped to provide a cycle centre; the centre also aims to improve and develop the forest as a regional centre of excellence for sustainable economic activity.