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RELEASED: APRIL 2008
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 2003-2007:
MBD believe that the UK electrical wholesalers market demonstrated year on year growth between 2003 and 2007 reaching £3500 million in the latter year. This represents growth of 4% in the year and of 14% compared with the beginning of the review period. Demand has been strongly influenced by the continued buoyancy of the UK construction industry during the review period. More specifically, growth in the key target market of repair & maintenance output, particularly housing has provided continued opportunities for the UK electrical wholesale industry. Increased levels of investment in the health and education sectors have also proved beneficial to the market.
While volume growth remains strong, fuelled by factors such as greater use of electrical equipment in homes and offices, the rate of market growth continues to be restricted by the price pressure in the sector. The relative strength of the pound Sterling during much of the review period has encouraged imports of low value products and this is compounded by specifiers seeking to reduce costs, even at the expense of quality or endurance. Not only does this reduce the short term value of the market, but MBD believe that the longer term ramifications are even more severe as customer expectations are increasingly oriented to low-cost items, making a recovery in margins even more difficult to achieve.
MARKET FORECAST 2008-2012:
The UK electrical wholesalers market is projected to demonstrate moderate annual growth rates between 2008 and 2012 reaching £3711 million in the latter year (at 2007 prices). This is equivalent to an overall real term increase of 6%. A combination of major infrastructure projects and an increase in construction up to the Olympic games in 2012 are expected to provide consistent demand for UK electrical wholesalers. Furthermore, improvements in efficiency, enabled by technological developments such as e-commerce, should help to maintain profitability in the industry.
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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