Construction barometer shows signs of sales improvements
Author: ross sturley cimcig
The April 2017 Construction Industry Barometer, completed by senior executives from across the construction supply chain, was published by construction market research specialists Leading Edge, in association with CIMCIG and Construction News.
In terms of sales performance, the average sales increase over the last 6 months (October 2016 to March 2017) compared to a year earlier was 4.3%, an increase from the low of 1.6% seen in October 2016 and returning closer to the average sales increases of 5% plus seen in the preceding 6 surveys. 56% of companies are confident of a sales increase over the next 6 months with the new build market continuing to lead growth in the construction industry and the housing sector particularly upbeat.
However, marketing budgets have seen a slight fall compared to October 2016. The average forecast increase in marketing spend for the next 12 months has dropped to 0.3% from 0.8% in October 2016. Mel Budd, Director at Leading Edge commented, “the survey shows that less than half of companies are planning an increase in their marketing budgets with a much smaller number, at 14%, looking to reduce their marketing spend over the next year.”
Mel commented that “Brexit is continuing to have an effect on the UK construction industry, particularly on material costs due to exchange rates while labour availability is also causing concern. The survey showed there is uncertainty in the market which has caused some building projects to be stalled or reviewed.”
To download Leading Edge’s Construction Industry Barometer report, please go to http://www.lead-edge.co.uk/downloads-and-reports/construction-industry-barometer/