NEW research has revealed that UK construction products manufacturing returned to growth in the second quarter of 2025.
The findings were revealed in the Construction Products Association’s latest State of Trade Survey. Heavy side manufacturers reported an increase in sales following a weak Q1, whilst for light side manufacturers, a run of growth expanded to six quarters.
In Q2, a balance of 53% of heavy side manufacturers reported sales of construction products increased compared to previous quarter. One-third of light side firms reported increased sales.
Over the next 12 months, 62% of heavy side firms and 53% of light side firms expect sales to rise, on balance.
The impact of April’s rise in the National Living Wage and the rise in National Insurance Contributions paid by employers was evident as 93% of heavy side firms and 94% of light side firms reported an increase in wages and salaries compared to a year earlier.
Rebecca Larkin, CPA head of construction research, said, “The return of growth for the heavy side and an extended run of growth for the light side heralds the signs of recovery for construction demand. An increase in heavy side sales typically aligns with new activity and starts on site and gives our sector some confidence that construction output will start picking up – albeit gradually – as we move into the second half of the year and households, businesses and investors gain confidence to give the green light to planned projects.
“The survey results highlight that challenges remain, however, not least that the strength of demand remains a concern, but in a quarter that dealt a multiple hit to employers’ wage bills, higher labour costs are adding to long-standing price pressures in the supply chain.”
