The British Woodworking Federation’s (BWF) latest State of Trade Survey covering the fourth quarter of 2013 shows a rise in companies planning to invest in machinery, with 46% of survey respondents planning investment in the next year and 63% engaging in product improvements.

"We know that companies are using more of their manufacturing capacity and that order books are looking a lot healthier than in the first half of 2013," said BWF policy executive Matt Mahony.

"This is all very encouraging. The industry is also heading to a point where manufacturing capacity and demand are seen as equal constraints on business, whereas previously a lack of demand had been seen as the crucial barrier for output."

Around two-thirds of respondents have been using more than 70% of their manufacturing capacity during Q4 and anticipate similar capacity utilisation during the next quarter and through 2014. This compared to 59% in Q3 and 40% in Q2.

The survey reveals sales volumes continued to increase from the previous quarter, although not quite at the same rate. A balance of 27% of joinery companies reported rising sales, building on the 43% from the third quarter and following on from two successive quarters (Q1 and Q2, 2013) when a balance of 7% noted a decrease.

A balance of 37% of survey respondents are confident sales will improve in the next quarter.