Electrical Wholesale Market Report - UK Analysis

Transcription

1 Electrical Wholesale Market Report - UK Analysis Published: 13/04/2017 / Number of Pages: 73 / Price: Introduction and Overview The 14th edition of the 'Electrical Wholesale Market Report - UK Analysis' answers the need for both a quantitative and qualitative analysis of the electrical wholesalers' market focusing on market size and trends, product mix, supply, distribution and future prospects. It is comprehensive, informative and will facilitate operational and strategic decision-making processes. Key issues covered in the report: Market activity levels with forecasts to Key influences including analysis of construction and housing trends. Market structure and analysis of the leading electrical wholesaler groups. Supply chain - changing influence of omni-channel, growth of Screwfix etc. Customers and key end-use sectors. Product Mix - products sold by electrical wholesalers. Areas of particular interest include: Product mix - review of product opportunities and growth sectors. Strengths and weaknesses of electrical wholesalers and competing channels. Key trends in the sector, with a focus on e-commerce and product opportunities. Impact of legislation and standards on the market. Recent acquisition activity and impact of raw material prices on the market. Detailed market data and insight on the electrical wholesale market by AMA Research, a leading UK provider of construction market intelligence. Some of the companies included: BEW Electrical Distributors, City Electrical Factors (CEF), Denmans, Edmundson Electrical, Electricbase, ERF Electrical Wholesalers, Express Electrical Distributors, Eyre & Elliston, Gibbs & Dandy Plc, Holland House Electrical Company, Kew

2 Electrical, Lincs Electrical Wholesalers, MacLean Electrical Group, Medlock Electrical Distributors, Moss Electrical, Newey & Eyre, Parmley Graham, R&B Star Electrical Wholesale, R&M Electrical Group, Rexel Group, Routeco, Screwfix, Stearn Electric Company, TLC Electrical Supplies, WF Senate, Wilson Electrical, Wilts Wholesale, YESSS. The Market Review of the wider electrical products distribution structure. Market size in value terms from 2012 with forecasts through to Market trends, background, changes, opportunities and threats. Review of key market influences - economic factors, construction & housebuilding, renewable energy products, trends in electrical appliances, raw material prices, international trade etc. Review of the impact of legislation and standards, with a focus on energy efficiency. Market prospects with implications for suppliers and distributors, potential impact of Brexit. The Wholesalers Review of characteristics and trends amongst electrical wholesale companies. Review of major electrical wholesaler groups - number of outlets, key characteristics, regional strengths, market positioning etc. Structural changes in the market, new entrants, key acquisitions, shift to omni-channel, preference for visible pricing etc. Analysis of profitability for electrical wholesalers over time. Wholesaler strengths, weaknesses, opportunities and threats, compared with other channels of distribution. Analysis of wholesalers' environment - key competitive channels, buying groups, super distributors and other influencing sectors. Review of issues such as own label products, e-commerce, sustainability etc. Product Review Market size, growth and trends for each major product area - cables, lighting, wiring accessories, circuit protection and switchgear, heating, fire & security systems etc. Product mix for electrical wholesalers. Electrical wholesalers' share of each major product area. Key competitive channels and major suppliers for each product area. Review of growth sectors, product development and new opportunities for wholesalers. Customers and End Use Segments Customer mix of electrical wholesalers. Review of the electrical contracting market - market size, leading M&E contractors. Review of other key customer segments such as facilities management, panel builders, etc. Report Summary

3 In 2016, the electrical wholesalers market was estimated to have grown by 4% compared with Following a period of consistent growth since 2013, supported by a strengthening economy and improved construction output, growth slowed in 2016 as uncertainty about the impact of 'Brexit' constrained construction output, raw material prices declined, and Government austerity measures continued to restrain public sector markets. These factors are expected to continue to limit the market growth in 2017/18. Factors supporting the market include growth in specialist markets, product development, demand for additional services and non-core products, and evolving legislation leading to a requirement for higher specification and new types of products, in addition to an improving economic and construction background and improved consumer confidence. Factors negatively affecting market growth include continued public sector budget constraints, uncertainty over the outcome of a Brexit process, price competition with many products in the mature phase of their life cycle, threat from competitive channels and longer product life-spans reducing the replacement market. Electrical wholesalers remain market leaders in the distribution of electrical products and are particularly strong in core product areas such as electrical accessories and lighting equipment. Whilst the wholesalers' share of lighting is currently marginally down on historical levels as newer LED technology has a higher proportion of direct sales, this is unlikely to be a long-term trend. The market is dominated by three large companies, which together account for the majority share of the electrical wholesalers market. The electrical wholesalers market is expected to continue to grow in 2017, although at a more modest rate, with current forecasts for construction output more cautious due to the uncertainty of the outcome of Brexit and continued restrictions in the public sector. Product sectors experiencing relatively good performance in the current market include electrical accessories such as cable systems, circuit protection and wiring accessories as well as lighting and newer product areas such as automation and electric vehicle charging. Continued development of niche product sectors will provide an opportunity to add value and differentiate on a basis other than cost, reducing price sensitivity. A growing use of e-commerce will provide opportunities for wholesalers to sell niche products more efficiently. List of Report Contents Contents Listing 1. INTRODUCTION BACKGROUND SOURCES OF INFORMATION 6 2. EXECUTIVE SUMMARY & FUTURE PROSPECTS SUMMARY MARKET PROSPECTS 9 3. ECONOMIC ENVIRONMENT GDP INFLATION & INTEREST RATES UNEMPLOYMENT HOUSEHOLD CONSUMPTION 14

4 3.5 HOUSING & CONSTRUCTION STERLING POPULATION PROFILE CONCLUSIONS THE MARKET MARKET DEFINITION & STRUCTURE MARKET SIZE & TRENDS Current Market Market Prospects KEY MARKET INFLUENCES Construction Output Demand for Electricity Imports and Pricing Legislation and Standards ELECTRICAL WHOLESALERS CHARACTERISTICS & TRENDS MARKET SHARES ELECTRICAL WHOLESALE COMPANIES STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS PRODUCTS PRODUCT MIX PRODUCT SECTORS Electrical Accessories Lighting Security and Fire Protection Systems Built-In-Appliances 56

5 6.2.5 Electric Heating Products Other Products CUSTOMERS & END USE SECTORS OVERVIEW OF ELECTRICAL WHOLESALERS' CUSTOMERS ELECTRICAL CONTRACTORS FACILITIES MANAGEMENT COMPANIES PANEL BUILDERS/OEMS IN-HOUSE ELECTRICAL ENGINEERS OTHER SECTORS 73 Tables & Charts CHART 1: UK ELECTRICAL WHOLESALERS MARKET BY VALUE ( M WSP) 8 TABLE 2: GDP DATA KEY CONSTITUENT ELEMENTS 12 CHART 3: INTEREST RATES AND INFLATION (CPI) FROM CHART 4: PDI & SAVINGS RATIO AT CURRENT PRICES TABLE 5: EXCHANGE RATE FLUCTUATIONS STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 16 CHART 6: DISTRIBUTION STRUCTURE FOR ELECTRICAL PRODUCTS 18 TABLE 7: THE ELECTRICAL WHOLESALERS MARKET BY VALUE ( M WSP) 22 CHART 8: CONSTRUCTION OUTPUT (GREAT BRITAIN) NEW WORK & RMI -CURRENT PRICES ( BN) TABLE 9: HOUSE BUILDING STARTS AND COMPLETIONS (UK) 2012 TO BY VOLUME ('000 DWELLINGS) 26 CHART 10: NON-RESIDENTIAL CONSTRUCTION OUTPUT NEW WORK ANALYSIS BY SECTOR 2016 AND % BY VALUE GB 27 TABLE 11: CONSUMPTION OF ELECTRICITY IN THE UK ('000 TOE) 28 CHART 12: ELECTRICITY CONSUMPTION BY END USER - INDUSTRY, COMMERCIAL, DOMESTIC 28 TABLE 13: IMPORTS OF SELECTED ELECTRICAL PRODUCTS FOR CONSTRUCTION USE BY VALUE ( M) 30 CHART 14: ELECTRICAL WHOLESALE % MIX: NATIONALS VERSUS LOCALS & REGIONALS - BY VALUE

6 TABLE 15: OVERVIEW LEADING COMPANIES BRANCHES 2012 AND CHART 16: ELECTRICAL WHOLESALERS' % PBT ON TURNOVER CHART 17: ELECTRICAL WHOLESALERS' % PBT ON TURNOVER NATIONAL VERSUS LOCAL & REGIONAL 35 CHART 18: ELECTRICAL WHOLESALE MARKET SHARES 2016 BY VALUE % (EDMUNDSON, REXEL, CEF ETC) 36 TABLE 19: KEY INDICATORS UK ELECTRICAL WHOLESALERS' MARKET - EDMUNDSON ELECTRICAL 37 TABLE 20: KEY INDICATORS UK ELECTRICAL WHOLESALERS' MARKET - REXEL 38 TABLE 21: KEY INDICATORS UK ELECTRICAL WHOLESALERS' MARKET - CEF 39 TABLE 22: KEY INDICATORS UK ELECTRICAL WHOLESALERS' MARKET - SCREWFIX 40 TABLE 23: KEY INDICATORS UK ELECTRICAL WHOLESALERS' MARKET - YESSS 40 TABLE 24: SWOT ANALYSIS OF THE ELECTRICAL WHOLESALERS' MARKET 44 TABLE 25: MIX OF CORE PRODUCT SALES THROUGH ELECTRICAL WHOLESALERS (CABLES, WIRING ACCESSORIES, CIRCUIT PROTECTION, LIGHTING, HEATING, SECURITY, VENTILATION ETC) 2016 ( M WSP) 46 TABLE 26: ELECTRICAL WHOLESALERS' SHARE BY CORE PRODUCT MARKETS (CABLES, WIRING ACCESSORIES, CIRCUIT PROTECTION, LIGHTING, HEATING, SECURITY, VENTILATION ETC) 2016 ( M WSP) 47 CHART 27: ELECTRICAL ACCESSORIES PRODUCT MIX WIRING ACCESSORIES, CIRCUIT PROTECTION, CABLES % BY VALUE 48 CHART 28: UK LIGHTING MARKET PRODUCT MIX (LAMPS, LUMINAIRES AND CONTROLS) % BY VALUE 52 CHART 29: PRODUCT MIX OF SECURITY & FIRE ALARM SYSTEMS (%) BY VALUE CHART 30: PRODUCT MIX OF BUILT-IN APPLIANCES (%) BY VALUE CHART 31: ELECTRIC HEATING PRODUCT MIX % BY VALUE (SPACE HEATING, CONTROLS, CENTRAL, WATER) 57 CHART 32: SALES BY CUSTOMER TYPE BY VALUE 2016 (%) (CONTRACTORS, FM, PANEL BUILDERS, IN HOUSE ENGINEERS ETC) 63 TABLE 33: ELECTRICAL CONTRACTORS REGISTERED FOR VAT BY TURNOVER BAND 2009 & TABLE 34: LEADING ELECTRICAL CONTRACTORS IN THE UK - BY ESTIMATED TURNOVER FROM ELECTRICAL WORK TABLE 35: TOP 10 FM SUPPORT SERVICES COMPANIES IN THE UK 68 CHART 36: NUMBER OF UK MANUFACTURERS OF ELECTRICITY DISTRIBUTION & CONTROL APPARATUS BY TURNOVER ( '000)

7 CHART 37: FUEL INPUT FOR ELECTRICITY GENERATION BY MILLION TOE TABLE 38: UK RENEWABLE ELECTRICITY GENERATION (GWH) - BY TECHNOLOGY (ON/OFFSHORE, PV, HYDRO, BIOENERGY, NON-BIODEGRADABLE WASTES) The 'Electrical Wholesale Market Report - UK Analysis' costs 845+VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets. We offer the following: Consultancy and bespoke research projects Published research reports high quality, detailed research reviews covering a wide range of environmental, building and construction products. Our extensive experience and in-house research database enables us to offer specialised and flexible bespoke research services, as well as giving excellent value for money. Our experienced in-house team of researchers are experts in their fields and adept in conducting original and relevant research for reports or bespoke projects, and key decision makers across the building and construction industries, both in the UK and abroad, frequently use our high-quality reports as their primary source of market data. To find out more about AMA Research, visit: or call us on