ALUMI N IUM
CAB survey reveals tough times ahead,
but capital investment a priority
CAB chief executive, Justin Ratcliffe, looks at the early impact of Covid-
lockdown in Q, a new communication initiative and a new tax service
member benefi t
Following the COVID- outbreak, data
for the CAB Q State of Market Survey
includes only the fi rst week of the national
shutdown introduced on March.
Despite the resulting widespread site closures
and social distancing measures, „…% net balance
of CAB members saw sales volumes grow by
over 50% in Q, … … compared to Q‰, ….
Additionally, 6% net balance saw a growth of not
more than 6% and 6% no change.
Amid the COVID- lockdown, members’
expectations for the future deteriorated in Q
with the forecast sales volumes for Q and year
ahead showing a „% and Ž% net balance fall,
respectively. This also echoes survey data from
HIS Market/CIPS which showed that construction
activity fell to an -year low in March.
Demand was reported by far and away the
key constraint on sales growth over the next
months. 8% of members reported this with
labour availability (6%), capacity (6%) and
material supply (6%) the only other metrics listed.
Unsurprisingly, the expected capacity utilisation
was at an all-time low, with only 6% of members
forecasting to be operating at over …% capacity
in Q and 6% for the year ahead.
The key driver of cost infl ation remained wages
and salaries (‰%) while raw materials showed
a net balance fall of 6%. Other cost factors
considered were exchange rates ( …%) and energy
costs (‰‰%). The recent plunge in global oil
prices has also fi ltered through to input prices. No
respondents gave fuel costs or taxation as having
any impact on driving up costs.
The anticipated fall in sales and construction
activity in … … combined with uncertainty
around the strength of recovery from Q once
lockdown measures are lifted or eased, meant that
construction product manufacturers remained
cautious about hiring in Q. Employment
intentions for the year deteriorated in Q with %
net balance of members anticipating a decrease
in headcount. This was reasonably consistent
with the wider construction sector that forecast
a reduction of %. Members also expected ( %
net balance) wages and salaries to fall over the
next months.
Capital investment however remained one
of the key priorities with e-business the focus of
investment intentions for the next months with
8% net balance forecasting growth in the year
ahead (% in past year).
There was further positivity with ‰œ% net
balance forecasting product improvement
investment growth in the year ahead along with
„% (R&D), % (customer research) and %
(plant/equipment). The only negative balance was
for property with a -% net balance (+ „% in past
year).
CAB LAUNCHES ‘MEMBER FOCUS’
CAB has launched a new regular communication,
‘Member Focus’, to keep members fully updated
in the current fast changing environment. Content
covers the latest relevant COVID- news and
the association’s growing programme of webinars
including contracts advice.
NEW MEMBER SERVICES
CAB is pleased to announce that it has joined the
Joint Taxation Committee (JTC) which consists
of representatives from major trade federations
operating in construction as a means of jointly
lobbying on those tax issues that affect fi rms in the
industry.
Members will now have the resources of
telephone support for tax enquiries and also a
monthly newsletter ‘JCT Newsline’.
www.c-a-b.org.uk
June www.ggpmag.com
/www.c-a-b.org.uk
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