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

Purchase orders – Q2 2024 – Q3 2024

Profitability (Gross Margin Return on Inventory) – Q2 2024 – Q3 2024

Lead times – Q2 2024 – Q3 2024

View the full Unleashed Manufacturing Health Index 

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