Industry Analysis & Industry Trends
The industry expanded during the past five years, despite some contraction at the start of the period. The housing market rebounded, stimulating industry demand. Non-residential building construction activity also gained momentum and positively influenced demand. However, the benefits to the industry were limited because larger commercial buildings tend to use structural components made from steel rather than wood. Meanwhile, improvements in real disposable income enhanced demand for products sold directly to customers, such as garden sheds. Nevertheless, import competition and rising competition from substitute products, such those made from steel or unplasticised polyvinyl chloride (uPVC), curtailed industry expansion... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity is determined by comparing the human and capital equipment factors of production using wages and depreciation costs as proxies. High depreciation costs indicate substantial investment in depreciable assets like buildings and equipment, suggesting high capital intensity. Conversely, comparatively high wage costs indicate high labour intensity.
The industry has a low level of capital intensity, with an estimated capital-to-labour ratio of 1:8.92 in 2016-17. This indicates that for every £1 spent on capital, £8.92 is spent on labour. The industry has high wage costs relative to the sector, reflecting the small-scale manual nature of much of the industry's production capacity. purchase to read more