CPA predicts continued growth into 2022

CPA predicts continued growth into 2022

BLOG · BY TTF CEO DAVID HOPKINS · 26 October

The CPA predicts continued growth as we head into 2022 however at a slower rate than the astronomical levels seen this year.

In its latest industry prediction, the CPA has revised its growth forecast down from 6.3% in 2022 to 4.8% largely because of continuing supply chain constraints.

The ongoing HGV driver crisis, rising energy prices, material and skills shortages, and increasing international freight issues are likely to bottleneck growth throughout 2022.

Though this may seem negative at first glance, the CPA still predicts robust growth next year, with output likely to be 3% higher than pre-Covid levels in 2019.

A core driver of timber demand, private housing, is predicted to grow by 7% however this is down from 10% in the CPA summer forecast.

Interestingly, the CPA predicts private RM&I growth is likely to remain flat in 2022 from an initial summer prediction of 3% growth.

This is not to say RM&I is on the decline, as growth was so high this year further growth next year was always unlikely.

It is likely the ‘race for space’ will continue next year, with levels of private RM&I much higher than pre-covid levels.

Though supply constraints will continue to cause problems, our recent market statement notes that more ‘regular’ demand and timber supply chain resilience is likely to ensure market pressure does not return to levels seen earlier this year.

Away from market forecasts, the TDUK World of Wood (WoW) Festival kicks off today with our online launch at 4 pm.

We will hear from a range of speakers about the upcoming events, manifestos, and digital platforms the festival has to offer.

There will also be a physical launch at the Building Centre on Thursday – come and join us for a drink as we celebrate all things wood.

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