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RELEASED: MAY 2010
After researching the UK electrical wholesale market development and taking into account various other factors the following conclusions can be drawn from MBD's report:
MARKET REVIEW 2005-2009:
In 2009, the UK electrical wholesalers market declined by an estimated 14% to a period low of £2901 million, consolidating the 3% decline recorded in the previous year. The declines reflect the adverse economic conditions and the significant downturn in construction activity, most notably in the private housing sector, since 2008.
This is in contrast to year-on-year growth reported between 2005 and 2007, with annual levels oscillating between 3% and 4%. Indeed, in the latter year, demand reached a five year peak of £3482 million, equivalent to cumulative growth of 6% compared with 2005. During this period, demand was strongly influenced by the buoyancy of the UK construction industry. More specifically, growth in the key target market of repair & maintenance output, particularly housing provided continued opportunities for the UK electrical wholesale industry. Increased levels of investment in the health and education sectors also proved beneficial to the market.
MARKET FORECAST 2010-2014:
In 2010, the value of the UK electrical wholesalers market is anticipated to contract by a marginal amount in real terms, reflecting the continued economic uncertainties, with the economic recovery remaining fragile for the foreseeable future. This is expected to continue to exert a downward pressure on new construction activity.
Nonetheless, the market is projected to recover in 2011, driven by a combination of major infrastructure projects, an increase in construction output, and the Olympic Games in 2012. Furthermore, improvements in efficiency, enabled by technological developments such as e-commerce, should help to maintain profitability in the industry for the rest of the forecast period. Moreover, continued environmental legislation is expected to boost demand in the market for more energy efficient products. Overall, the electrical wholesalers market is anticipated to increase by a cumulative 12% in real terms between 2009 and 2014, reaching £3249 million (at 2009 prices) in the latter year.
NOTE TO EDITORS:
MBD specialises in business to business market research. The range of reports and industries in which we operate in constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.
Click here for full details of the UK Electrical Wholesale Market Research Report
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