NuGen Properties

Heavy material sales slow as starts decline

With new-build construction slowing down and industry efforts more focused on improving existing buildings to reduce energy bills, light side manufacturers are expected to continue benefiting more than heavy side manufacturers, their trade association said.

The Construction Products Association (CPA) state of trade survey for the fourth quarter (Q4) of 2022 saw a 20% net balance of heavy side manufacturers reporting sales in decline, marking a second consecutive quarter of decline. In contrast, a net balance of 27% of light side manufacturers reported that product sales rose, which extended a run of growth to 10 straight quarters.

On balance, one-third of heavy side firms, whose products tend to feed into the earlier stages of construction, anticipated a decrease in sales over the next 12 months. On the light side, a balance of 8% of firms anticipated a rise in sales during 2023.

CPA head of research Rebecca Larkin said: “It was a mixed bag for construction product manufacturers at the end of last year, with demand in some areas of construction knocked by renewed economic uncertainty following the Truss government’s mini budget, as well as early signs that historically high inflation was stalling household spending and business investment decisions. This primarily affected heavy side manufacturers, who experienced a fall in sales for products that are typically used at the earlier stages of construction as demand and confidence weakened for new build project starts. Sales growth continued for light side manufacturers in Q4, however, and is likely to have been buoyed by areas of construction that are still experiencing strong activity, namely offices refurbishments and energy-efficient retrofit such as insulation measures.”

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Dan Morten 18/01/22

Easy to work with, Jordan and the team were professional and were easy to communicate with.
Would highly recommend.

Di Hayes 20/08/22

NuGen Properties built an extension to the rear of my property, replacing the old conservatory. I am so pleased I chose this company. From the initial quotation, through the build and after they were professional, polite & well mannered. They kept the site tidy throughout the build and kept me informed of each stage as it happened. The work was finished to a good standard and I have had nothing but compliments on their work. I am already planning for them to come back and do some more work for me in a few months. I would 100% recommend them.

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