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PRO INSTALLER DECEMBER 2015
PRO NEWS
@proinstaller1
Aluminium in building sector still
showing signs of confidence in Q3
CAB Chief Executive, Justin
Ratcliffe, looks at the latest
encouraging finds from the
Association’s State of the
Market Survey.
The latest CAB State of the Market figures for Q3, 2015 highlighted that CAB member’s anticipated
growth in sales (75% net balance)
over the next 12 months reflecting the strength of the domestic
market, which has been driven by
the private housing, industrial and
infrastructure sectors. The confidence shown is in line with the
expectations of further economic
and construction growth in 2015
and 2016.
In response to ten quarters of
rising sales, production appears to
be increasing and spare capacity
absorbed. 39% of members reported that they had been operating
at over 90% capacity in the past
year and 33% forecast that this
would be the case in the following
12 months. In addition an anticipated 74% net balance increase in
plant/equipment investment for
the following year (together with
other capital investment metrics
such as product improvement)
signals wide spread confidence in
members’ outlook
A further significant positive to
contrast with market concerns
from the wider Construction
market place is that 37% of CAB
members are forecasting no constraints on activity over the next
12 months. However, costs had
risen for 65% net balance of members over the last year and were
anticipated to increase by 75% net
balance over the next 12 months.
The Headlines:
• Members reported that they
anticipate sales rising over the
next quarter (45%) and the next
12 months (75%).
• Costs continued to rise with 65%
net balance reporting a rise in
costs in the last 12 months (59%
in Q2/2015) and 75% expecting
a rise over the next year (68% in
Q2/2015)
• Wages & salaries (85% net balance) were reported for the 6th
successive quarter as the major
cost factor closely followed by
Raw materials (50%), with Fuel
Costs (-50% (-14% in Q2)) and
Exchange rates (-6%) both negative on balance.
• 39% net balance of companies
expected to operate at over 90%
of capacity over the next 12
months (40% in Q2/2015)
• Headcount increase forecast for
the year ahead was 58 % net
balance compared to 73% in
Q2/2015 but was ahead of the
wider construction sector figure
of 53% net balance.
• Labour costs had risen over the
past year for 53% net balance of
members (compared to 80% for
the wider construction sector)
and 84% forecast a rise in the
year ahead.
• Demand (47%) and Capacity
(16%) were once again factors
‘likely constraints on activity
over the next 12 months’. Encouragingly though 37% of respondents stated ‘No constraints’
(24% in Q2/2015)
Underlying the increased confidence has been the strength
of capital investment intentions
across all the metrics. In each of
the quarters in 2014, there had
been a greater commitment (or at
least equal) to investment across
all the metrics for the 12 months
ahead and this has largely continued throughout 2015. The metrics
being: Property, plant/equipment,
customer research, R & D, Product
improvement and e-business. The
outstanding two areas as in the
previous quarter were product
improvement (80% net balance)
and plant/equipment (74% net
balance) followed by customer
research (50%).
The key driver of cost inflation
continued to be wages and salaries in Q3, reflecting the impact of
the rapid rise in the demand for
skilled employment. On balance
85% of members reported that
wages and salaries rose over the
past year. Reflecting wider developments in the global, fuel costs
were lower (for the 5th consecutive quarter) for 50% of members
on balance.
While a broad decline in large
contractors’ order books suggests
an element of weakness and
uncertainty over the near-term
outlook, for CAB members there
are still clear signs of confidence
ahead.
For further information on CAB
contact Justin on 01453 828851
or email justin.ratcliffe@c-a-b.
org.uk
Purplex zooms in on the Fenestration G Awards
Andrew Sykes, Purplex Marketing’s
talented videographer, was a man
with a plan last month at the glass
and glazing industry’s most prestigious event, the G Awards. Commissioned by the organisers to take
video “evidence” of the evening,
Andrew was on hand to interview
the winners and film their reactions in the heat of the moment.
“It was a great night, with quality entertainment, and it’s all on camera,” said Andrew. “The suspense before each winner
announcement charged the atmosphere,
adding to the dramatic effect. I’m delighted Purplex were chosen to document the
‘window industry’s Oscars’.
In only a few months, Purplex has
produced a series of high-quality, original video content and photography for
major players in the window industry,
and the wider construction market, such
as the Caldwell/Cotswold Group, Hueck
Aluminium Systems, and timber and PVCu
fabricator, Dempsey Dyer, to name but a
few.
G15 organiser, Tony Higgin, commented: “The standard of the finalists and the
entries this year has been exceptionally
high, making it truly difficult for the
judges to decide. It seems like the event
is getting bigger and better every year
and it was great to have Purplex there to
capture the spirit of it!”
The official G15 video can be watched
at https://www.youtube.com/
watch?v=EcIkSWJT6fw
‘The standard of the
finalists and the entries
this year has been
exceptionally high’