The electrical wholesale market is set for a £300 million boost by 2020 according to a new report from MTW Research, despite Brexit dampening longer term growth prospects for some aspects of the electrical products market
The 180 page report indicates that there are a number of key growth sectors for electrical wholesalers to exploit in 2016 and beyond, with products such as LED lighting, security, CCTV & fire systems, ventilation, air-conditioning, circuit protection and switchgear all set to exhibit above average growth rates to 2020.
Discussing the findings, MTW analyst Charlotte Jones commented, “Brexit clearly represents a threat and there will be challenges ahead but it also offers opportunities as domestic production ramps up to combat rising import costs. In the near term there are strong, underlying fundamentals which should support growth for the electrical products and wholesalers market as the market slowly shifts toward a more UK based manufacturing industry.”
Despite Brexit ramifications, product development and innovation is set to support value growth in the medium to longer term according to the report. Technology which offers enhanced features and benefits for installers and users is likely to underpin margin opportunities in the higher value sector, driving sustained optimism for electrical wholesalers and their associated suppliers. IoT, growth in automation and enhanced connectivity are highlighted by MTW as key issues which should support the electrical products market during the uncertain times ahead. Growth trends such as rising demand for enhanced levels of monitoring and control are also identified as being key drivers for the electrical wholesale market in 2016 and beyond.
The report also reviews sales by customer type for the electrical wholesalers, finding that more than 70% of contractors will report a turnover of less than £250,000 in 2016. However, MTW also report that there has been some shift in the mix by customer size in recent years, with sales growing more quickly amongst larger clients who are wielding greater buying power. This has continued to dampen product price inflation in 2016, with customers continuing to demand quality products whilst also seeking value for money and maximising their purchasing power to negotiate lower prices.
The research identified a number of opportunities for electrical wholesalers and manufacturers to exploit in the next few years, relating to a wide range of issues across a number of key end use sectors. Examples of these include a growing focus on corporate and public security, enhancing power and data transmission reliability, rapid developments in new technology such as geofencing, legislative changes and energy saving issues such as LED retrofits in non-domestic applications.
The full report, which also includes 3 years financials for 90 leading electrical wholesalers heating suppliers and an optional 1,800 electrical wholesalers mailing list is available to purchase from MTW Research’s website www.marketresearchreports.co.uk or by calling 08456 524324.
