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Cost Pressures Intensified for Construction Products Manufacturers in Q3

The construction products manufacturing sector expanded for a fifth consecutive quarter in 2021 Q3, according to the latest Construction Products Association’s State of Trade Survey. This is despite escalating cost pressures and ongoing issues on the supply side that have been further exacerbated by a shortage of HGV drivers and disruption at major ports.

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Strong Construction Demand but Supply Hit by Perfect Storm

The Construction Products Association (CPA) has revised construction output growth up for 2021 from 13.7% to 14.3% since its previous Forecasts, but also revised down growth for 2022 from 6.3% to 4.8% in 2022. With more buoyant demand so far in 2021, supply chain constraints are expected to hinder growth over the remainder of the year and into 2022.

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