Clearview National April 2019 - Issue 209 - Page 58

event zone Strong growth in sales confidence for year ahead The Q4, 2018 CAB State of the Market Survey saw a dramatic rise in confidence for sales growth in the next 12 months. With 2018 growth Q4 State of Trade Survey construction continuing to be driven by private housing and infrastructure, the key highlight was that 73% net balance of members forecasted growth in sales over the next 12 months (41% in Q3). Expected Sales Volumes reasonable to say that the B CPA CAB CPA 100 market has looked beyond 90 the uncertainty surrounding 77 80 73 73 68 Brexit although one also has to 70 64 60 consider that 55 a few companies 50 may have been increasing stock 40 levels. The results also provide 30 a very good justification for 20 10 the strong aluminium sector 0 presence at the FIT Show 2019 Annual Quarterly Annual which includes 11 CAB members on the CAB Pavilion and over rted Capital Investment 30 members at the Show on-Quarter Sales Volumes - Year-on-Year overall. 100 Past y ear Next y ear CA B CPA 90 The figures become even 80 Down by over 5% 0 70 62 more interesting in that for 57 57 57 60 52 Down by not more than 48 0 Q4, 45% of CAB 55 members 50 55 5% 38 33 40 saw growth of more than 5% 29 29 24 23 30 No change 27 36 14 compared to Q3, 18% saw 32 20 10 growth of up to 5% with 27% no Up by not more than 5% 36 18 0 9 change. Only 9% saw a decline 0 Up by over 5% 41 45 and in all cases, this was by less 6% to 10% Up to 5% None 0 20 40 60 80 20 40 5%. 60 80 than Proportion of firms - against year ago Proportion of firms - against quarter ago Continued demand for skilled labour placed upward pressures Cost Factors on wages and salaries with 82% net balance of members Taxes Expected Unit Costs 18 highlighting it as a key cost 95 CAB CPA 100 & salaries B CPA Wages 82 90 86 factor. Although the annual CPI 90 80 Energy costs 55 80 inflation rate fell to a 2 year 68 70 Fuel costs 64 50 low of 2.1% in December from 60 2.3% in November, pressures Exchange rates 32 50 persisted for members. Raw 40 Raw materials 59 30 materials (59% net balance) 0 20 40 60 80 100 20 and lingering high costs for Net % Balance of Respondents 10 fuel (50% net balance) also 0 Annual Quarterly Annual continued to exert upward pressure on manufacturers Demand was reported to supply and raw materials (each Historic input costs. be the key Capacity constraint Utilisation on sales 5%). However, 9% of members CA B CPA Looking ahead for the year, growth reported no constraints. 60 over the next 12 months. cil for Aluminium in Building and the State of Trade Survey CAB members expected overall 59% of CAB members reported Higher sales in the 2nd half 50 lding’s (CAB) aim inflation is to support the interests of the that architectural the increasing use of cost to persist with 86% demand aluminium was likely industry to be by encouraging of 2018 coupled with improved 40 of the Council for Aluminium in Building are involved in all stages of re and in the net construction industry as increases a whole. Members balance expecting the key constraint on sales expectations for the year ahead n of systems, fabrication of products, finishing, production of associated products 30 and final installation on site. For 30 more over 30 the next 12 27 months. The encouraged CAB members to 53 828851. in the next quarter and 95% net balance expecting increases other major constraints were continue 18 hiring in Q4. In Q4, 20 ey provides over an insight into 12 current and expected future industry trends. material The survey utilises 55% a balance of respondents to an the next months. labour availability, net balance forecasted 10 percentage of firms reporting a rise is more than the proportion of trends. A positive balance of respondents means that the viding a summary of the industry overall. 2018 CPA CAB Proportion of firms - against quarter ago 10 0 Year Next Quarter 58 APR 2019 Labour Force CPA CAB 0 Quarter increase in headcount during Historic Sales Volumes 2019. 100 90 Overall capacity levels were 77 80 reported to be sufficient in 70 55 55 60 Q4 50 given sector output and 40 demand. 19% of members 27 30 20 reported that they had 10 0 operated at between 90% Quarterly Annual and full capacity over the last 12 months. In a year’s time, Sales Volumes - Quarter-on-Quarter capacity utilisation is expected over higher 5% to be Down 90% by or according 0 more than to Down 29% by not of members. 9 5% Once again there was a 27 No change very positive view of capital Up by not more than 5% 18 investment over the next 12 on Activity Ove Likely Constraints Up by over 5% 45 months which has become 0 20 40 60 100 90 feature of the a very strong 80 CAB State 70 of Market Survey. 59 60 In Historic Q4, plant & equipment 50 Costs Unit 40 was 100 the focus 30 for the year 18 90 20 ahead with 62% of members 0 5 80 10 80 68 0 an increase in this 70 anticipating 55 60 area. 50 Furthermore, balances of 41 40 57% 30 expected to see increase 20 investment in both product 10 0 improvement and e-business. Quarterly Annual This was followed by balances of 52% for increased Information about the Capacity Council for Aluminium in Building and Expected Utilisation investment in property and 24% The customer Council for 60 Aluminium in Building’s the CPA i for research. R&D (CAB) was aim is to CA support B aluminium products in architecture and in the construction industry a construction, extrusion where and design members of systems, fabrication of products the only metric 50 CAB on 01453 828851. information, contact forecasted slightly less The quarterly State 40 of Trade Survey provides an insight into current a investment (14% balance) assess survey results and net identify trends. A positive balance of respond 30 firms that reported a decline, providing a summary of the industry ove in the year 30 ahead compared 19 to the previous year (24% net 20 balance). 2018 Q4 State of Trade 2018 Q4 State of Trade Survey Labour Costs » » IT WOULD SEEM