Construction products manufacturing returned to growth in the second quarter of 2025, according to the Construction Products Association鈥檚 latest state of trade survey.
Heavy side manufacturers reported an increase in sales during the quarter, returning to growth after a weak first quarter, while for light side manufacturers, a run of growth extended to six consecutive quarters.
In Q2 2025, a balance of 53% of heavy side manufacturers reported that sales of construction products increased compared to previous quarter. A lesser 33% balance of light side firms reported increased sales, with manufacturers reporting growth in each quarter since Q4 2023.
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. The impact of April鈥檚 rise in the national living wage 鈥� spurring increases in higher pay grades 鈥� 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.
CPA head of construction research Rebecca Larkin said: 鈥淭丑别 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 鈥� albeit gradually 鈥� 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.
鈥淭丑别 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鈥� wage bills, higher labour costs are adding to long-standing price pressures in the supply chain.鈥澛犅�
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