The latest State of Trade Survey showed that construction product manufacturing gained little traction in Q3.
Whilst there was growth in sales volumes reported over the quarter for both heavy side and light side manufacturers, heavy side sales were still lower than the same quarter of 2024. Particular weakness was reported by mineral product manufacturers of ready-mixed concrete, crushed rock and sand & gravel. Heavy side products, and particularly aggregates, are used in the early phases of construction and their weak performance highlights the slow progress of new project starts.
Back at the start of the year, house builders had been expecting demand to pick up throughout 2025, but even by Summer there had been little improvement in buyer sentiment, despite interest rate cuts during that time. Affordability, especially concerning deposits, continues to be cited as a barrier to first-time buyer purchases in areas with higher house prices, but is reported as less of a concern in areas of lower house prices. Instead, supply side constraints dominate: increased costs that affect site viability for house builders and developers.
Key findings
• 20% of heavy side firms and 29% of light side firms reported that sales rose in 2025 Q3, on balance
• However, on balance, 7% of heavy side firms reported a decrease in sales compared to a year earlier
• One-third of heavy side manufacturers and half of those on the light side expect sales to increase over the next 12 months
• Input price inflation was led by wages & salaries, raw materials and taxes
• There were still signs of spare capacity, particularly on the heavy side