Joiners remain hopeful of bouncing back after subdued, weather-hit first quarter

The most recent BWF State of Trade Survey results indicated a difficult Q1, but businesses are optimistic that sales will be back on track.

Sales in the first quarter of 2013 did not increase as much as had been anticipated in the previous survey, with the balance of respondents indicating decreasing sales volumes. However, with poor weather conditions thought to be a factor, particularly in January and March, there is some optimism that sales volumes will return.

Respondents also expressed concerns that demand is unlikely to return in the near future and that the costs associated with CE marking and sourcing EUTR compliant timber were beginning to put pressure on manufacturers. There was also a perception that renewed activity from HSE and HMRC was aimed at increasing revenues through fines.

Key points from the BWF State of Trade Survey include:

– A balance of 7 % of respondents noted a decrease in sales volumes in Q1 2013, whereas in the previous survey 19%, on balance, had predicted that sales volumes would increase in this period.

– Manufacturers were more confident that sales volumes would improve in the next quarter, with a balance of 37% predicting an increase, and a balance of 24% predicting an increase over the next year.

– The amount of capacity that companies had been utilising had been lower than the previous survey with 13% of respondents indicating that they have been or will be operating at over 90% capacity.

– Order books for future work still rarely extend beyond 3 months.

– Demand is remains by far the most significant constraint on activity.

– Fuel and energy costs are increasing at a higher rate than previously noted and continue to push up unit prices.

– Raw material costs increased for 78% of respondents.

– Investment in customer research and e-business was set to increase over the next year, with 70% planning for a spending increase in product improvement.

Look out for the Q2 survey in the next few weeks.

BWF members will be able to view the full 2013 Q1 report simply by logging in to this page below.

 Look out for the Q2 survey in the next few weeks.

BWF members will be able to view the full 2013 Q1 report simply by logging in to this page below.