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RELEASED: JANUARY 2009
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 2004-2008:
The UK electrical wholesalers market is believed to have declined by 5% to £3317 million in 2008, reflecting tough economic and trading conditions as a result of the credit crunch which started to affect the UK economy mid 2007, poor house moving activity and declines in construction output, notably in the private housing sector. Moreover, MBD believe end user confidence has been adversely affected by the slow down in the economy, this combined with a significant decline in housing starts has caused national housebuilders to mothball planned developments and delaying purchases.
This is in contrast to year-on-year growth reported between 2004 and 2007, with annual levels fluctuating between 2% and 4%. In the latter year, demand reached a five year peak of £3482 million, equivalent to cumulative growth of 11% compared with 2004. 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 2009-2013:
The value of the UK electrical wholesalers market is anticipated to contract by 4% in real terms in 2009, reflecting the impact of the credit crunch and worsening economic conditions. Indeed, the deteriorating market is largely a reflection of projected declines in private housing activity, a slowdown in house moving, along with anticipated reductions in output in commercial and other non-residential sectors. However, the market is projected to recover during 2010, driven by a combination of major infrastructure projects and an increase in construction output up to 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. Overall, the electrical wholesalers market is expected to increase by a cumulative 1% in real terms between 2008 and 2013, reaching £3335 million (at 2008 prices).
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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