Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Construction products manufacturing returned to growth in the second quarter of 2025, according to the Construction Products Association’s (CPA) latest State of Trade Survey.
The survey found a balance of 53% of heavy side firms reported construction products sales rising in 2025 Q2 compared with Q1. On balance, 33% of light side manufacturers reported the same, marking a sixth quarter of growth.
The association also found 90% of manufacturers reported an increase in wages & salaries costs compared to a year earlier. (93% for the heavy side and 94% for the light side) Costs from taxes were also reported higher by 71% of heavy side firms and 93% of light side firms, and 42% of heavy side manufacturers and 65% of those on the light side cited ‘demand’ as a constraint on sales over the next 12 months.
The report says manufacturers anticipate the construction recovery to continue over the next 12 months, with 62% of heavy side firms and 53% of light side firms expecting sales to rise over the next 12 months, on balance.
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.”
