Compiled in conjunction with the CPA ( the Construction Products Association ) the CAB State of Trade Survey is completed alongside the Summer 2024 edition of the CPA ’ s Construction Industry Forecast .

Unusually CAB Members ‘ Historic Sales Volumes ’ were below anticipated for Q2 , reporting -15 % on net balance compared to the wider construction products market which reported an increase of 30 % on net balance from respondents . It is unclear why the CAB Membership fared worse in Q2 as in previous quarters the Membership reported more positively . The slowing of the market could be attributed partly due to the very poor weather experienced year to date . With a positive Q2 from the overall Construction products market it is

anticipated that this will pull through into a positive position for Members in Q3 .

‘ Expected Sales Volumes ’ for Q3 have softened considerably since Q2 indicating a cautious outlook ahead at the timing of the Q2 survey . Members ‘ Expected Sales Volumes ’ dropped from 62 % on net balance for Q1 to just 20 % of Members on net balance in Q2 . Now that there is a change of government which has a very positive forecast for the next few years , especially in the new house build market , it is anticipated this will lead through to revitalised output expectations in Q3 .

Whilst rising material and labour costs continue to feed through into the construction products market the pressure on costs have decreased slightly in Q2 on net balance of Members . ‘ Historic Unit Costs ’ have reduced from 60 % to 40 % in Q2 . ‘ Expected Unit Costs ’ forecasted by Members has reduced considerably from 83 % to 25 % on net balance of Members . It is suggested that the continued stability of aluminium costs based on supply availability is helping to keep unit costs under control . This anticipated stability , however , is in stark contrast to the wider construction products supply which are anticipating an

increase pressure in unit costs in 2024 .

Members actual ‘ Sales Volumes ’, both ‘ Quarter on Quarter ’ and ‘ Year on Year ’, continue to show a slight decline , however , a greater proportion of members are now reporting less change in Sales Volumes , up to 45 % of respondents compared to just 11 % ‘ Year on Year ’ which suggests that the fenestration market continues to stabilise .

Cost Factors for the Membership show a slight softening over the last year on Wages & Salaries , 70 % of Members reporting on net balance in Q2 compared to a high of 93 % on Members in the past year .

Members continue to report that the ‘ Likely Constraints on Activity Over the Next 12 Months ’ remains anticipated demand , however , this has softened slightly in Q2 reported by 70 % of respondents compared to a high in Q3 2023 of 89 % of Members .

The pressure on ‘ Labour Costs ’ has softened very slightly , both for the last year

and anticipated for the year ahead . ‘ Labour Force ’ availability has also has also softened and 15 % on net balance for the last year report a reduction in labour force .

Members report that exports continue to reduce with both ‘ Historic Exports ’ and ‘ Expected Future Exports ’ both reducing on net balance of respondents . The number of Members now reporting that they do not export any products stands at 70 % of respondents , this is an increase from 12 months ago where 47 % of members were reporting that they were exporting products .

‘ Capital Investment ’ across most sectors of Members businesses is now increasing as opposed to decreasing as reported a year ago , with ‘ Plant Improvement ’ being the largest investment . Apart from investment in property Members are reporting an increased investment for the year ahead reflecting a cautious , optimistic view for future business in the UK .

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