NEW research has found that UK sales volumes for both heavy side and light side construction product manufacturers dropped in the first quarter of 2026.
The findings are revealed in the Construction Products Association’s State of Trade Survey.
All manufacturers also reported an increase in costs, particularly for fuel, energy and raw materials.
In 2026 Q1, a net balance of 14% of heavy side manufacturers and 18% of light side manufacturers reported a decrease in product sales volumes, compared to the previous quarter. This was the first time both segments have reported a decline in over two years.
Heavy side sales were also lower compared to a year earlier. For light side manufacturers, annual growth in sales was reported by just 9% of firms, on balance.
Product manufacturers reported clear inflationary pressure. Fuel and raw materials costs increased compared to year earlier, with the heavy side also recording widespread increases in energy costs. This adds to last year’s rises in employers’ National Insurance contributions and the National Living Wage, which increase the manufacturing cost base.
Rebecca Larkin, CPA head of construction research, said, “The effects of persistent rainfall in the first half of the quarter and the start of the Middle East conflict in the second half showed up clearly in construction product manufacturing. By this point, industry’s hopes had been for early momentum to be building into a spring recovery but instead, a fall in sales and a notable increase in input costs lay the base for another challenging year.
“Some damage has already been done, given the adverse effects of spikes in oil and industrial energy costs, which can account for up to one-third of total costs for manufacturers, particularly those on the heavy side. The outlook for construction over the rest of the year has undoubtedly deteriorated, given the uncertainty over the extent of cost rises and the impact on confidence, spending and investment. However, there are potential upside risks if the government provides stimulus for housebuilding and home improvement and reduces its extensive list of cost burdens on the industry, which are set to increase further near-term given the incoming 50% import tariff on steel products in July, the Building Safety Levy in October and its Future Homes and Building Standards from March 2027.””
