According to the latest joint Trade Survey Report from the Construction Products Association and the Construction Confederation, there has been an overall continued acceleration of industry growth during 2007. Despite the rise in output, concerns over capacity constraints appear to be easing, while contractors report fewer difficulties in recruiting skilled labour. 
 
Strong activity in the commercial and public new housing sectors is the principal driver of industry growth, with larger building firms the main beneficiaries of the increase in workload.
 
Máren Baldauf, economist at the Construction Products Association said: "The increase in construction product sales during the second quarter was again driven by light side manufacturers, with 94% of firms reporting higher sales volumes compared to this time last year. Half of light side manufacturers and a third of heavy side manufacturers reported an increase in sales of more than 5% in the last year. However, construction product manufacturers continue to face a widespread rise in unit costs - mainly driven by a fuel and energy costs - as well as higher raw material prices. These cost pressures have further squeezed manufacturers' margins and continue to filter through to building contractors as higher material costs."