The BWF’s Joinery State of Trade survey covering Q2 shows a balance of 7% of respondents noted a decrease in sales volumes – a surprise as in the previous survey 37% of respondents, on balance, had predicted sales volumes would increase in Q2.
"It was perhaps surprising that a number of respondents reported a disappointing Q2 relative to the weather-hit Q1," said BWF policy executive Matt Mahony.
"Sales volumes in the last quarter didn’t increase as much as respondents expected; in fact, on balance, respondents indicated a small decrease with no significant trends noted in terms of location, product market or size of company."
Mr Mahony said the Q2 results serve as a reminder that joinery sector growth continued to be slow in an "exceptionally competitive" market.
However, he said anecdotal evidence and industry predictions suggested better fortunes for joinery manufacturers in Q3, as the housing recovery, a general uplift in construction work, and fair weather would all be likely to boost activity.
The Q2 survey shows a balance of 19% of manufacturers were still confident enough to predict a sales growth in Q3 and 20% believe volumes will increase over the next year.
Only 40% of respondents had used more than 70% of their manufacturing capacity for the last year but this was expected to improve to 69% and 74% of respondents over the next quarter and year respectively.
Demand remains the most significant restraint on activity, while raw material costs increased for 82% of respondents.
Around two-thirds of respondents say their order book extends between one and three months, with 7% reporting an order book extending beyond three months.
