NEWS
Manufacturers pessimistic despite growth T
he CPA’s State of Trade Survey for 2017 Q2 reveals that UK construction product manufacturers experienced growth in sales and activity for the 17th consecutive quarter, but higher input costs and rising uncertainty has dampened manufacturers’ views for the near-term future.
Results of the survey showed that among heavy side manufacturers, only 7% anticipated a rise in sales in the next quarter, a decline from the 68% who anticipated a rise when asked in 2017 Q1.
A sharp rise in input costs was also reported in Q2, with 93% of heavy side manufacturers and all of those on the light side reporting an increase in costs compared with a year earlier. The strongest inflationary pressures came from raw materials, fuel and energy, owing to
depreciation in Sterling during 2016, alongside skills shortages pushing up wage bills.
The construction products
manufacturing industry has an annual turnover of £55bn, directly providing jobs for 300,000 people across 22,000 companies.
Products range from ‘heavy side’ materials such as steel, bricks, timber and concrete to ‘light side’ products such as insulation, boilers, glass and lighting. On an annual basis, 47% of heavy side firms reported that sales had increased in Q2, while on the light side, 45% of firms reported that sales were higher than a year earlier. Rebecca Larkin, CPA senior economist said: “It was an eventful quarter on the political front, with the announcement of a snap general election and the resulting hung parliament adding to existing uncertainty over the path for Brexit negotiations.
“Despite healthy growth in the second quarter, construction product manufacturers have turned more pessimistic over performance for the
Carel Group acquires Polish distributor
T
he Carel Group has continued its international expansion strategy through acquisitions by fully acquiring Alfaco Polska, based in Wroclaw, Poland. Alfaco Polska has been the company’s Polish distributor for over 20 years, and posted sales of around €11m in 2016, an increase of approximately 18% from 2015, with 10 million from the domestic market and the rest from the Ukraine and the Baltic area. Poland is a dynamic country with very strong growth compared to the EU 28 average, holding a strategic geographical position in the eastern European market. Moreover, the country has a strong industrial base and high growth potential in terms of infrastructure.
Carel Group’s investment is aimed at consolidating the growth it has recorded in recent years in the Polish, Ukrainian and Baltic markets, where double-digit growth in the refrigeration and air-conditioning sectors is expected over the next few years. True to its mission, Carel will continue to invest in high-efficiency solutions that use natural refrigerants, providing more specialist local support to the HVAC OEMs in Poland that are increasingly active in European and international markets. Francesco Nalini, Carel Group managing director, commented: “Alfaco is a very important, long-term partner for us in Poland.” He continued: “With this acquisition we are continuing our strategy to establish a direct presence in all major international markets, meaning we can can be close to our customers and support them in terms of technology, logistics and service.”
Currently, the Carel Polish office employs 38 local personnel. The company’s board members will be Jarek Baranczenko as chief executive; Luigi Rossi Luciani as Carel Group president; and Mirco Cauz as managing director for Carel Central and Southern Europe.
14 August 2017
rest of the year, reigniting concern that the triple hit of imported inflation in raw materials, higher fuel and energy prices and the persistent pressure on labour costs will have a negative impact on demand and construction activity over the next 12 months.
“An increase in overall costs was reported by 93% of heavy side manufacturers and all of those on the light side. Inflation is expected to endure as similar proportions anticipate that costs will continue to climb over the next year. “The Government’s ability to progress the pipeline for large public sector and infrastructure projects is now more important than ever as a means of sustaining activity when private sector decision-making may be stalling.”
Key survey findings include:
■ A balance of 40% of heavy side firms and 55% of light side firms reported that construction product
sales rose in the second quarter of 2017 compared with the first quarter
■ On an annual basis overall, sales rose for 47% of heavy side firms and 45% of firms on the light side
■ On balance, 7% of heavy side manufacturers anticipated a rise in sales in Q3, decreasing from a balance of 68% in the previous quarter
■ On the light side, 20% of firms expected an increase in product sales in the next quarter, compared to a balance of 47% in Q1
■ Annual cost increases were reported by 93% of heavy side manufacturers and 100% of those on the light side
■ Raw materials costs rose according to 87% of heavy side manufacturers and 100% of those on the light side
■ 93% of heavy side manufacturers and 90% of light side
manufacturers anticipate a rise in costs over the next year.
Football competition for local hospital hots up for cold specialists
T
wo commercial refrigeration specialists are soon to go head to head in a charity football match to raise funds for the children’s ward at their local hospital.
Employees from Foster Refrigerator and Williams Refrigeration, both based in King’s Lynn, Norfolk are set to play in the match which will kick off at 12pm on Saturday 05 August 2017 at Alive Lynnsport. All money raised will be donated to Rudham Ward at The Queen Elizabeth Hospital, King’s Lynn.
Martin Laws, marketing manager at Williams Refrigeration said: “We’re really excited about the upcoming match. We’re both large employers in the area, and of course the hospital is close to the hearts of all our colleagues. The fact that we compete in the same industry but share a common cause was a great motivation for us all to get involved. We’re really looking forward to raising as much money as we can.”
Nick Bamber, head of marketing at Foster Refrigerator, added: “We’re committed to supporting our local community and this game is the ideal way to do just that. Both of our businesses have been based in the area for a long time, and for us to be able to help raise money for The Queen Elizabeth Hospital is fantastic. I am sure both teams will play it ‘cool’ and enjoy the match!”
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