ALUMINIUMEXTRA
Learning from the past , building for the future
CEO of CAB Aluminium , Justin Ratcliffe begins July ’ s ‘ Aluminium Extra ’ with a report on a busy Q2 for the association . With confidence in future sales growth for the material still strong despite rising costs , CAB delivered a key conference on Fire and Flanking Acoustics at the Jaguar Experience Centre , Castle Bromwich in mid May , here are the highlights …
»»
THE LATEST Q1 , 2018 CAB STATE OF the Market Survey highlighted that confidence in the future remained in terms of expected sales volumes increasing for the next quarter , 80 % net balance ( 47 % in Q4 ) and the next 12 months , 79 % net balance ( same as Q4 ). This was despite the weather-related disruption and ongoing economic and political uncertainties relating to Brexit .
Construction growth over the past year has been driven by private housing , infrastructure and RM & I , which has benefitted most product manufacturers . 43 % of CAB members reported significant rises in sales ( rises of over 5 %), compared to a year earlier and 29 % reported that sales had increased by up to 5 % over the same period .
Demand was again reported as the key constraint on sales growth over the next year . 80 % of members reported that demand was likely to be the key constraint compared to 63 % in Q4 . The other constraints , both under 10 % net balance were labour availability and raw material prices . 7 % claimed that there were no constraints .
Although the annual CPI inflation rate fell to 2.7 % in February from 3.0 % in January , it remained above the Bank of England ’ s 2 % target . In Q1 , cost increases were reported by 60 % of members , on balance , compared to 95 % in Q4 . Looking ahead , members ’ cost pressures were expected to continue over the next quarter ( 67 %) and the next year ( 80 %). The key drivers of cost inflation in Q1 were wages and salaries ( 87 % net balance ), followed by raw materials and fuel costs ( 80 % and 60 % respectively ).
In the year to Q1 , capacity remained sufficient . 20 % of members reported that they had operated at between 90 % and full capacity over the last 12 months , down marginally from 21 % in Q4 . In 12 months ’ time , capacity utilisation was anticipated to be 90 % or higher according to 20 % of members .
Sales Volumes - Year-on-Year
Down by over 5 %
Down by not more than 5 %
No change
Up by not more than 5 %
Up by over 5 %
7
7
14
In Q1 , on balance , 40 % and 27 % of members reported that investment in customer research and property was higher than a year earlier . The balance for e-business ( 60 %) was nearly double that of the previous year ( 33 %), while product improvement remained very high at 73 %, the same as the previous year . The balance for R & D at 53 % for the next 12 months was slightly lower than the previous year ( 60 %).
FIRE AND FLANKING ACOUSTICS CONFERENCE , CASTLE BROMWICH
Mid May saw the annual CAB Aluminium in Building Conference at Jaguar Experience , Castle Bromwich entitled , ‘ The Façade as a Protection against Fire and Flanking
29
0 10 20 30 40 50 60 Proportion of firms - against year ago
43
Speakers at the CAB Conference on ‘ The Façade as a Protection against Fire and Flanking Acoustics ’ at Jaguar Experience ,
Castle Bromwich on 16 May 2018
Acoustics ’. Nearly 100 delegates listened attentively to a series of eight presentations . The first session was focused on fire safety and Merlyn Forrer , Fire Protection Manager with Greater Manchester Fire & Rescue Service , set the scene with his keynote address : ‘ External Fire Spread ’. Merlyn stressed the need for a holistic view of fire safety and illustrated through case studies that fire loading in the event of an accident is subject to many variables that need to be considered . As David Cooper , Fire Safety Engineering Manager at International Fire Consultants went on to stress , we must learn from history and ensure that we raise the knowledge levels throughout the industry , particularly when it comes to fire safety . The reminders were timely , coming the day before the publication of ‘ Building a Safer Future ’, the final report of the Independent Review of Building Regulations and Fire Safety .
For further details on any of this year ’ s activities or for how to join CAB , please contact the office on 01453 828851 or email jessica . dean @ c-a-b . org . uk
CLEARVIEW-UK . COM » JUL 2018 » 43