‘Sales Volumes – Quarter-on-Quarter’ show a further slowing of growth for CAB Members in the last quarter compared to 2021. Whilst still positive, Members reporting ‘Sales Volumes’ up by over 5% have halved over the year to 46% of reporting Members. ‘Sales Volumes – Year-on-Year’ are broadly positive with only 8% of Members stating sales had decreased over the last year.
Confirmation, if any is needed, comes through clearly in the survey regarding Historic Unit Costs and Expected Unit Costs. On net balance all members of CAB and the wider Construction Industry has incurred increased costs and anticipate costs to increase further in the next quarter and the year ahead.
Breaking down the ‘Cost Factors’, whilst ‘Raw Materials’ remained at a high level during 2021, 92% of Members in quarter 1 continue to suggest further increases. The first quarter of 2022 also shows that ‘Energy Costs’ and ‘Fuel Costs’ have further risen to match that of the ‘Raw Materials’, which is closely followed by ‘Wages and Salaries’. These increases will no doubt continue to fuel increased building costs and lead to further pressure on inflation.
The ‘Likely Constraints on Activity Over the Next 12 Months’ shows an improving situation over the last year when 42% of members reported in Q2 2021 that ‘Material Supply’ would be a constraint, now falling to 23% in the last quarter. Demand remains the highest ‘Likely Constraint’ as reported by 46% of the Membership.
With ‘Historic Capacity Utilisation’, the proportion of Members who are reporting over 90% Capacity Utilisation, peaked in Q3 2021 at 44% for the previous quarter and 50% for the previous year. This has fallen over the last quarter to just 23% for both the last quarter and year. This suggests a slowing of sales output which could be attributed to both the last quarters storms and the shortage of materials. The wider Construction Industry is reporting 45% ‘Capacity Utilisation’ which would suggest new starts on site which will eventually lead through to Members sales.
Expected Capacity Utilisation by CAB Members is cautious with only 38% forecasting over 90% Capacity Utilisation for the month and year ahead. With the wider Construction Industry forward view also cautious, this could suggest a slowing in UK construction output.
‘Labour Costs’ remain at their highest level with increases over the last year and 85% of all respondents on balance claiming future increases.
Based at the picturesque Bonds’ Mill development in Stonehouse, CAB staff are always on hand during normal working hours to answer any membership, training or technical aluminium fenestration related questions. News and event information is regularly updated on the CAB website at www.c-a-b.org.uk and also in the Association monthly ezine ‘A Window Into Aluminium’ which is free to sign up to. If you are not a member of CAB and wish to learn more about membership, please contact Jessica Dean at the CAB offices by email jessica.dean@c-a-b.org.uk or telephone Jessica at the office on 01453 828851.
