UK construction and building manufacturers are riding high on a wave of newfound confidence for 2025 after figures revealed a dramatic uplift in sales revenue and purchasing. Small and mid-sized firms saw their average sales jump by 126% in the third quarter of 2024, while the number of purchase orders (POs) placed with suppliers was also up by 97%, according to a report from inventory management software provider Unleashed. Construction and building manufacturers saw the fifth biggest jump in sales revenue out of all the 12 manufacturing categories analysed. It also saw the seventh biggest rise in POs. Revenue and POs were both up by 88% across the manufacturing sector – signalling high confidence among consumers, retailers and other businesses. Ted Bromley-Hall, Managing Director at UK landscaping products manufacturer IBRAN, said: “Customers are becoming ever more price focussed but don’t want to sacrifice quality in pursuit of it. We’ve made a concerted effort to highlight the fact that all our products are made here in the Midlands, using raw materials sourced locally. The benefits of this to the customer are that they are able to work on an assured margin, knowing that layers of handling aren’t inflating their price point. “We are not the cheapest manufacturer but we are the only ones able to produce sustainable, quality, premium products at a below average price point, and over the course of the last 6-12 months we’ve seen a 200% increase on last year’s demand.” The report also shows that construction and building manufacturers are buying more inventory in anticipation of further orders. Last year, the government announced in its Autumn Budget an investment of £13bn for 2025 to ‘rebuild Britain,’ which includes 1.5m new homes and infrastructure projects. There are also funding opportunities through the Net Zero Innovation Portfolio – a £1bn fund to develop green technology. Construction output increased by 0.8% in Q3 2024 working out to £444m, compared to the same period in 2023. And 2% of the growth was because of new work. There was also an estimated 1.3% increase in private housing repair and maintenance in 2024, with eight out of nine construction sectors reporting an increase in work. Joe Llewellyn, GM of Cloud ERP at The Access Group, the parent company of Unleashed, said: “This uptick in sales revenue and purchasing bodes well for the manufacturing industry. “Firms are buying more inventory – and while this might bring back bad memories of post-Covid disruption, when manufacturers were forced to adopt a ‘just in case’ strategy – it’s actually a positive sign in the current climate. “Lead times remain low, so the orders we currently see flowing through the supply chain look like genuinely robust business confidence.” “It will also be interesting to see what impact the most recent Autumn Budget will have on the wider manufacturing industry. On the one hand, business leaders have warned that rises in National Insurance, minimum wages and business rates will hit them hard. However, the government has pledged to invest in housing, public infrastructure, clean energy and technology, which could provide a welcome boost to manufacturers in the construction, energy and electronics sectors.” Sales revenue – Q2 2024 – Q3 2024 Sector 2024Q2 2024Q3 % change Personal Care £162,338 £385,507 137% Food £356,280 £831,875 133% Health, Medical Supplies and Equipment £132,887 £294,166 121% Clothing, Footwear, Accessories £229,334 £523,625 128% Building and Construction £248,562 £561,898 126% Energy, Chemicals £284,269 £587,148 107% Electrical and Electronic Components £129,077 £220,920 71% Beverages (alcoholic and non-alcoholic) £287,273 £467,338 63% Sport, Entertainment, Recreation £155,883 £236,767 52% Industrial Machinery, Raw Material and Equipment £276,548 £487,423 7% Furniture, Fixtures, Home Furnishing £107,302 £133,818 4% Electronics, Telecommunication £479,409 £387,141 -19% All sectors £248,620 £468,215 88% Average for the Fiscal Year £306,245 £346,933 13% Purchase orders – Q2 2024 – Q3 2024 Sector 2024 Q2 2024 Q3 % change Electronics, Telecommunication 64 169 164% Clothing, Footwear, Accessories 354 790 123% Electrical and Electronic Components 118 262 122% Energy, Chemicals 155 339 118% Food 181 366 102% Industrial Machinery, Raw Material and Equipment 310 624 101% Building and Construction 130 256 97% Health, Medical Supplies and Equipment 112 215 92% Personal Care 152 278 83% Beverages (alcoholic and non-alcoholic) 104 178 71% Furniture, Fixtures, Home Furnishing 122 165 35% Sport, Entertainment, Recreation 208 193 -7% All sectors 171 322 88% Average for the Fiscal Year 212 227 7% Profitability (Gross Margin Return on Inventory) – Q2 2024 – Q3 2024 Sector 2024 Q2 2024 Q3 % change Health, Medical Supplies and Equipment £3.29 £3.86 17% Sport, Entertainment, Recreation £3.82 £4.35 14% Food £1.49 £1.43 -4% Industrial Machinery, Raw Material and Equipment £3.96 £3.65 -8% Personal Care £4.03 £2.48 -38% Electrical and Electronic Components £4.68 £2.87 -39% Electronics, Telecommunication £4.33 £2.49 -42% Clothing, Footwear, Accessories £7.80 £3.88 -50% Building and Construction £4.15 £1.58 -62% Energy, Chemicals £3.54 £1.29 -63% Beverages (alcoholic and non-alcoholic) £1.94 £0.71 -63% Furniture, Fixtures, Home Furnishing £6.40 £1.83 -71% All sectors £3.55 £2.36 -34% Average for the Fiscal Year £3.59 £3.34 -7% Lead times – Q2 2024 – Q3 2024 Sector 2024 Q2 2024 Q3 % change Electronics, Telecommunication 16 14 -12% Energy, Chemicals 16 14 -12% Furniture, Fixtures, Home Furnishing 25 25 0% Electrical and Electronic Components 17 17 0% Sport, Entertainment, Recreation 17 18 6% Beverages (alcoholic and non-alcoholic) 14 15 7% Building and Construction 14 15 7% Clothing, Footwear, Accessories 21 23 10% Health, Medical Supplies and Equipment 17 19 12% Industrial Machinery, Raw Material and Equipment 16 18 13% Personal Care 17 20 18% Food 15 18 20% All sectors 16 18 13% Average for the Fiscal Year 24 20 17% View the full Unleashed Manufacturing Health Index Building, Design & Construction Magazine | The Choice of Industry Professionals