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Construction product manufacturing shows ‘green shoots of recovery’
Cristina Lago Deputy Editor
In 2024 Q2, 30% of heavy-side manufacturers reported an increase in sales of construction products, marking the first quarterly growth since Q22022. Additionally, 13% of light-side manufacturers reported an increase in product sales.
Both heavy-side and light-side firms reported a quarterly increase in product sales volumes, although concerns remain over the near-term strength of demand and labour availability.
Despite growth over the quarter, it remained weak compared with a year earlier, reflecting two years of flatlining GDP growth and an extended period of interest rates being held at peak, resulting in a significant reduction in demand from private housing new build and repairs, maintenance and improvement.
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CPA said expectations for the next 12 months were positive in Q2, with growth forecast by both heavy-side and light-side manufacturers. Nevertheless, 29% of heavy-side manufacturers cited labour availability as a concern – the highest proportion on record. The figure was 27% for light-side manufacturers.
All manufacturers reported an increase in wages and salaries compared with the previous year.
Rebecca Larkin, CPA’s head of construction research, said: “After an extended period of declining sales, particularly on the heavy side, encouragingly we are now seeing the green shoots of recovery. For the heavy side, this was the first quarterly growth recorded in two years and, given this context, it is perhaps not surprising that sales volumes were still reported lower when compared to a year earlier given the longer-running weakness experienced by product manufacturers feeding into a slower residential construction sector.
“In common with construction, one of the industry’s biggest longer-term issues will be attracting and retaining workers.”
The January/February 2026 issue of Construction Management magazine is now available to read in digital format.
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