CPA – State of Trade Survey – July 2022

Date Published

3 October 2022

Document Type





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.